Chromex Begins Mining at Stellite Pit

Chromex Mining plc reported in late July that it had commenced production with its first blast on the MG1 chrome seam at the Stellite open-cast chrome mine on the Western Limb of the Bushveld Complex in South Africa. This follows the completion of the acquisition of the remaining 49% of Ilitha Mining (Pty) Ltd., which holds the mining right for Stellite. Chromex and its BEE partner, Umnotho weSizwe, together now own 100% (74%, 26% respectively) of the project.

The 271-hectare Stellite project will have a target production of about 30,000 mt/month chromite ore for more than 10 years of mine life, using contract miners and initially selling run-of-mine ore. The company plans to construct a processing plant, targeted to be completed by the end of 2008, which is to be partially funded by sales of chromite ore collected from production. Initially a stock pile was to be established, with third-party sales expected to begin in late August 2008.

“Having now commenced production at Stellite, we are entering into a cash generative stage through the sale of chromite ore to third parties. The cash generated will initially be used to help finance the development of the onsite processing plant and then part fund the development of the flagship Mecklenburg project,” said Chromex CEO Russell Lamming.

As featured in Womp 08 Vol 7 - www.womp-int.com