London-listed Ironveld’s subsidiary Ironveld Holdings on March 5 signed an updated term sheet with Sable Exploration and Mining (SEAM) regarding the company’s joint venture (JV) at the Lapon magnetite plant in Limpopo, South Africa.

Ironveld owns a high-purity iron, vanadium and titanium project in the Bushveld Complex in Limpopo.

Following successful renegotiations, Ironveld has revived the agreement with SEAM and has committed to funding the completion of the beneficiation plant, from the funds raised from the capital raise completed in November 2024.

Commissioning of the plant is expected to take place within the coming weeks, with it set to process, produce, market and sell dense media separation- (DMS-) grade magnetite.

Following completion of the plant, the JV will be structured as a 50:50 partnership between Ironveld Holdings’ subsidiary Altona Processing and SEAM’s wholly owned subsidiary Lapon Plant.

As part of the renegotiated agreement, SEAM has also committed to a prepayment of R5-million for DMS-grade magnetite material.

The revised JV agreement remains subject to signing of the final contract and, therefore, the terms expected to be agreed remain subject to change.

Ironveld also reports that, despite heavy rainfall in Limpopo, construction of the DMS plant remains on track.

Commissioning of the plant and first magnetite production is expected in March, with the first commercial production scheduled for April. Management anticipates that the plant will reach full operational capacity by the end of April.

Ironveld Mining is actively clearing the mine site following the heavy rains and preparing to deliver ore for the DMS plant’s commissioning.

Community engagements continue and the company has made its first contribution towards the academic requirements of the social labour programme.

Ironveld Smelting has made significant progress on the design of the water-based atomiser for producing market samples, with consultants having completed an initial layout.

The final design and cost estimates are expected by the end of April.

The company continues to work towards publication of its annual accounts, which is now expected to occur by the end of March, at which point trading of shares is expected to resume.

“The renegotiated agreement with SEAM significantly enhances Ironveld’s position, increasing our equity stake in the DMS project from 25% to 50%. We are excited to collaborate with SEAM on this strategic partnership and look forward to advancing the project together,” says Ironveld CEO Kris Andersson.