JOHANNESBURG (miningweekly.com) – Astron Energy, which has successfully rebranded one of South Africa’s transport fuel forecourt networks, is described by Glencore CEO Gary Nagle as being a terrific asset.

With the restart to full production of the Astron Energy refinery in Milnerton, Cape Town,  Astron Energy is supplying a sizeable quantity of South Africa’s fuel and lubricant needs, including those of the mining industry.

“It's one of the very few operating crude oil refineries in South Africa where it’s providing beneficiation, local job creation, and a local brand,” Nagle highlighted during this week’s Glencore media conference following the presentation of half-year results by the London- and Johannesburg-listed diversified mining and marketing company.

“A great management team runs Astron from Cape Town, refining margins are positive and it's a cash-generative asset for Glencore,” Nagle said in response to Mining Weekly’s questions.

Most of the cash being generated is being reinvested into the business through various upgrades and initiatives of the plant, as well as the rebranding of the forecourts around South Africa.

Astron provides a key element for Glencore’s food trading business, with the refinery a primary constituent.

Moreover, Astron’s sector-specific expertise, particularly within the mining environment, allows the group to provide tailored solutions that address the specific needs of customers.

FERROCHROME AND DECARBONISATION

Production and supply of battery and alloying metals of primary and secondary origin, including the strongly South Africa-linked ferrochrome, were also highlighted.

“Ferrochrome is not your traditional decarbonisation metal or transition-enabling metal in that it's not used in batteries and the like. But where ferrochrome is absolutely important and critical for decarbonisation is in the production of stainless steel.

“To make stainless steel, you have to use ferrochrome. You cannot produce stainless steel without it. If you had no ferrochrome and you weren't producing stainless steel, your replacement cycle of everything that is stainless would be so much quicker, which means far more use of steelmaking coals, far more use of carbon-based reductants in producing pig iron and carbon steel, and the additional carbon added to the atmosphere would be significant,” Nagle pointed out.

“The fact that we have ferrochrome in South Africa allows for a much slower replacement cycle. Longevity of stainless-steel products is a contributor in itself,” he added.

Mining Weekly: Do you see demand lifting for ferrochrome in the medium to long term?

Nagle: We see strong demand for ferrochrome going forward.

RENEWABLE ENERGY ON WAY

On what has been accomplished so far by Glencore in adding renewables and low carbon electricity to its South African ferroalloys operations, Glencore Alloys CEO Japie Fullard reported that a start had been made on the building of a 25 MW renewables plant for Rhovan, the ferrovanadium operation situated about 30 km to the north-west of Brits, in North West province.

Execution of this solar project is probable within the next year and the company is also close to signing a power purchase agreement for 100 MW of solar power.

“We have in-principle approval for that and we’re also pursuing other projects,” Fullard reported.