Eastern Limb Mining & Trading

EASTERN LIMB TRADING

The Eastern Chrome Limb in South Africa is the area stretching from approximately the town of Mashishing (Lydenburg) in Mpumalanga province north to Polokwane in the Limpopo province. There are massive deposits of various chrome ore and PGM seams in the area. The area has been extensively mined for the last 50 years and has several big ferrochrome and platinum smelters in the territory.

Steelpoort Chrome Hub

The Steelpoort Chrome Hub is a state of the art warehouse facility approximately 6 km outside the town of Steelpoort in the Limpopo province. This hub was constructed as facility to receive, test and export large quantities of chrome ore. It has a 6000 ton storage facility on a purpose built concrete slab and space for an additional 10 000 tons of ore storage on chrome bedded ground

The entire facility is solar powered, which includes a full-sized weigh bridge, 3 air-conditioned offices and a small workshop as well as storage garages for the front-end loaders and cranes. At current full capacity 100 36-ton side tipper trucks per day can be processed through the Hub. This includes offloading inbound chrome ore deliveries and loading of trucks for cross border shipment to Maputo harbour.

Inbound chrome ore deliveries are received from the mines and every truck is sampled on a truck by truck basis by Commodity Inspections Group (CIG). A special arrangement with CIG means that quality reports are received for off loaded chrome ore within 24 hours. This allows Chromemax International to transact swiftly with its suppliers, thus improving their cash flow and allowing them to increase the volume of ore that they are able to supply to us.

Chromemax International buys well in excess of 1000 tons ore chrome ore per day in the Steelpoort area. It is estimated that the business activity generated by the Chrome Hub sustains approximately 200 families in the area by indirectly providing jobs to mine workers, truck drivers and admin staff. The suppliers of chrome ore to the Chrome Hub are almost exclusively community owned mines. Chromemax International have implemented very strict vetting and KYC systems to ensure that only legally mined and obtained chrome ore is accepted in the Hub.

Steelpoort Siding

In addition to the Chrome Hub, Chromemax International also has a 3000 ton ore storage facility at Steelpoort siding, via an arrangement with SCA Logistics, which manages a large part of the siding. Chromemax International delivers 2000 to 3000 tons of chrome ore ROM per week to the facility at the siding for rail transhipment to Maputo Harbour.


EASTERN LIMB MINING

Twyfelaar 1 Chrome Mine

Chromemax International has dedicated in-house opencast mining team. This team has been structured as a subcontracting arm to Chromemax operations as well as outside parties. The mining team has just completed a 3 year project as contract miners at the mine Twyfelaar 1, and is completing the final stages of rehabilitation of the mining area. Throughout the entire project they averaged a monthly saleable tonnage of Chrome ore ROM of 11 000 tons. The grade of the product generally exceeded 42% Cr2O3, and never dropped below 40% Cr2O3. This is a testament to their superb mining skills and attention to detail, in very difficult mining conditions with seam dips at 35 degrees and constant ground water problems.

Twyfelaar 2 Chrome Mine

A regular supplier of chrome ore to Chromemax International has secured the mining rights on another portion of the farm Twyfelaar in the Steelpoort district. As a result of the successful relationship we have with all our suppliers, they have contracted Chromemax international as their 50% partner in the mine. Chromemax International will fund the entire mining project, as well as sell the entire production of the mine for the life of the mine. The estimated mineable chrome reserve is 1 000 000 tons to a 35m high wall for opencast mining. The assessment for the viability of underground mining will be made during the first stages of open cast mining. If underground mining proves possible this will at the very least increase the reserve to 3 000 000 tons. All the rights and documents for this project has been completed and executed. Preliminary work for the mine is already underway and the first ore will be produced in early April 2018.

The planned production for this mine is 15 000 to 20 000 tons of saleable product per month from open cast mining only.