Name of the Project
Sishen ultrahigh-dense-media separation (UHDMS) project.

Location
Northern Cape, South Africa.

Project Owner/s
Anglo American subsidiary Kumba Iron Ore.

Project Description
Kumba plans to invest in margin-enhancing UHDMS processing technology at its Sishen mine. The project will convert the current dense-media separation (DMS) processing plant at the mine to UHDMS technology.

This technology uses specialised ferrosilicon in the plant processing of raw iron-ore, and allows for greater flexibility to process a wider range of iron grades and densities. The implementation of the technology will improve the proportion of premium iron-ore and lower the waste stripping ratio while maintaining the lump:fine ratio.

Sishen produces iron-ore at an average iron-content quality of about 64% and an average lump:fine ratio of 70:30. 

The UHDMS technology is expected to increase the volume of premium iron-ore to an estimated 55% of Sishen’s production, up from the current estimated 18%. This, in turn, is expected to increase the product premium by $2/t to 3/t on average above lump and iron premiums. Reducing the mining cutoff grade from 48% to 40% iron will result in the waste stripping ratio’s improving to about 3.3 from about 3.9.

Consequently, the waste mining required a year will be reduced by 15-million tonnes, in addition to a significant reduction in the cost of mining. This project also creates the potential to extend Sishen’s life-of-mine until 2044. The implementation of the project will follow a modular approach, with six of the eight coarse modules, and five of the seven fines modules, converted into using UHDMS. During the implementation phase, the modules not under construction, as well as the JIG plant, will continue to run, and production will be supplemented by finished product stock.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The project has an estimated internal rate of return of more than 30% with a payback from first production of about three years.

Capital Expenditure
Kumba announced board approval for a further R7.6-billion investment in the UHDMS project in August 2024. This is in addition to the R3.6-billion previously approved in February 2021, bringing the total capital investment in the project to R11.2-billion.

Planned Start/End Date
Project development will start in November 2024, with the main tie-in of the project in 2026, and the plant reaching full capacity by the end of 2028.

Latest Developments
As at August 2024, R1.8-billion had been spent on the detailed engineering design, earthworks and the technical review. The remaining R9.4-billion will be invested between the second half of 2024 and the end of 2028, in line with the phasing of the project.

Key Contracts, Suppliers and Consultants
To be confirmed.

Contact Details for Project Information
Kumba Iron Ore manager corporate communication, Sinah Phochana, tel +27126837019 or email Sinah.Phochana@angloamerican.com.