As phase 1 of the project, SCSC wishes to beneficiate chrome concentrate into ferrochrome for export, through the establishment of low cost, technically advanced, DC arc furnaces that will be strategically located within South Africa’s borders.
It is expected that SCSC will operate at the bottom of the industry cost curve with a delivered cost of US$ 41.81* cents per lb Cr.
SCSC has invested circa ZAR70 million in the Project to date, which included the acquisition of land in close proximity to Siyanda’s Union Mine and the completion of a bankable feasibility study.
An Environmental Impact Assessment has been progressed significantly.
Based on current spot prices and consensus forecast price growth rates, the Project delivers a net present value of R6.208 billion (16.5% discount rate) and a Project internal rate of return of 36.4%.