Aim-listed Kropz’s Elandsfontein operation, in South Africa, started the year positively, with record production of 33 000 t for January.

That took production for the four months to January 31, to 107 772 t of phosphate concentrate. Kropz sold 131 282 t of phosphate concentrate over the four months.

For the ten months to January 31, Elandsfontein produced 265 623 t of phosphate concentrate and sold 260 843 t.

In January, the first shipment was made to the European market, further diversifying the customer base.

Management expects there to be a further increase in demand for Elandsfontein's rock phosphate produced late in 2024.

The Elandsfontein mine is still in its trial production phase and further challenges can be expected as it progresses toward full production, Kropz points out.

The centrifuge unit that suffered an early setback owing to machinery failure in 2024, has been successfully recommissioned under warranty this year.

The project continues to yield positive results post recommissioning as it enables better management of the high levels of slimes material in the ore deposit while maintaining the specified design moisture content, Kropz highlights.

This has resulted in significant relief at the tailings section, improving the dry stackable material, which in turn increases throughput at the plant.

Kropz Elandsfontein continues to apply stockpiling and blending techniques of the various ore types encountered at Elandsfontein.

The company has embarked on an extensive geometallurgical programme of analysing and testing the various ore types being stockpiled to identify and refine the appropriate method of mining and processing to improve efficiencies.

The “Pink Ore” found within the ore deposit is a major ongoing focus. The “Pink Ore” wash plant project was launched and was successfully commissioned, addressing the challenges that these present to the processing of the ore.

The commissioning of the wash plant has had positive results and improved production yield, Kropz avers.

The company says it is optimistic about a prospect found in the orebody, being Nanophos, a sub-38-micron product that has emerged as a potent yet underused resource.

Nanophos is considered a valuable phosphate nutrient for which there is potential market interest. Various projects are being instigated to explore the full potential of this opportunity, Kropz notes.

HINDA PROJECT

The Hinda project in Congo-Brazzaville, meanwhile, is being developed by Kropz’s subsidiary Cominco.

The reduced-size project continues to be assessed to propose a fit-for-purpose low capital expenditure project to prove the concept of producing phosphate concentrate in the African country and exporting it.

The update of the project feasibility is ongoing.

Cominco has engaged with two engineering firms and local contractors. Engagement is ongoing with local government regarding project development and progress.

CLAIM

Teh Hong Eng Investments Holding (THE) and Meridian Investment Group have, meanwhile, served particulars of claim in litigation in the English High Court to which Kropz and Cominco are defendants.

The litigation relates to an alleged breach of THE’s right of first refusal to acquire Cominco shares at the time of Kropz’s offer to Cominco's shareholders in November 2018 which resulted in the acquisition by Kropz of the entire issued and to be issued share capital of Cominco, including the acceptance of the offer by THE and Meridian as shareholders of Cominco.

Kropz and Cominco have notified the court that they intend to fully defend the litigation, which it adds was started by THE and Meridian only shortly before the expiry of the statutory limitation period for the claims.