Coming soon

THE National Empowerment Fund (NEF) has reached an agreement with two Russian firms to deploy their technology at a R15bn rare metals project for which the fund is now starting to raise capital, CEO Philisiwe Buthelezi said yesterday.

Russia’s Magnezit Group and Magnesium Metals have agreed to participate in the project and could be an equity partner once it reaches the bankable feasibility phase.

The NEF has a pipeline of 15 projects worth R27bn and aims to raise R10bn in a first tranche of capital that will go towards its top five projects, Ms Buthelezi said.

The projects tie in to the government’s desire to create jobs, outlined in the New Growth Path, and the revised Industrial Policy Action Plan (Ipap2) launched this week.

Trade and Industry Minister Rob Davies said at the launch of Ipap2 the trade and industry and mineral resources departments would work together to ensure value was added to the raw materials SA produced, through beneficiation projects.

The rare metals project will add value to the mineral sands that SA exports. Exxaro Resources is the world’s second-largest source of titanium oxide feedstock.

Exxaro had been approached as a source of material for the project, Ms Buthelezi said, and two years of work had gone into the scheme.

Trevor Arran, the executive GM of Exxaro’s mineral sands and base metal operations, said the company was willing to supply the project with feedstock.

The project could need up to 25000 tons a year of titanium dioxide and 15000 tons of zircon.