Project 11: Manhize Coking Coal

Sector: Mineral Beneficiation

ZAR1.8 billion (USD144 million or €140 million)

Project Summary

The project aims to establish a carbon reductant producing facility in South Africa. To date, a Concept Study (2010/11) and a Pre-feasibility Study Phase 1 (2013/14) have been concluded. The studies investigated the viability of both Blast Furnace Coke, which is predominantly used in the iron and steel industry and Metallurgical Coke used in most other smelting operations. The key findings of the studies were as follows:

• There is a potential market for metallurgical coke in South Africa to supply the estimated 500 000 tpa of coke currently being imported to fill gap in the 1.1Mt domestic ferroalloy coke demand;
• The establishment of a Blast Furnace Coke plant could only be motivated as part of a vertically integrated steel business, utilising blast furnace technology; and
• The economics of Metallurgical Coke production were more favourable than for Blast Furnace Coke as a result of the opportunity to use low cost locally-produced coking coals in comparison to Blast Furnace Coke, which requires a high percentage of imported higher cost premium hard coking coals.