Melmoth, South Africa

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Jindal Africa feels that the biggest South African investment is on the horizon, with the current vision to substantially invest in Jindal’s flagship project, a Melmoth iron ore project development with an 32MTPA operation at steady state to produce approximately 7 mtpa of iron ore concentrate containing 67% Fe.

This magnetite resource with potential reserves of more than a couple billion tonnes is located 25 kilometres Southeast of the Melmoth, a small town under King Cetshwayo district municipality in KwaZulu-Natal. This abundant open cast resource has a favourable strip ratio, with significant ramp up production anticipated on this unexplored prospecting area.

Since acquiring these two respective areas, comprising of 21 000 hectares, the company has aggressively commenced with exploration activities in 2012 to prove the Magnetite Iron Ore potential in entire license area followed by detailed exploration to quantifying JORC complaint resource estimate to the tune of over 1 billion at mass yield of 22.7% in small block of 4sqkm.

The proposed development

Includes an open pit mine, waste rock dump, processing plant, tailings storage facility and associated infrastructure to support the mine would include: a laboratory, rail loading facility, access and haul roads, electrical transmission line and sub-stations, water pipelines, stormwater management infrastructure, concentrate pipelines, offices, change house, workshops and perimeter fencing (amongst others).

These facilities are necessary for the efficient operation of the mine and to ensure the safety and well-being of the workers. The laboratory will be used for testing and analyzing samples, while the rail loading facility will be crucial for transporting the mined materials. The stormwater management infrastructure will also help prevent any potential environmental impacts caused by heavy rainfall.

Expected to commission mining operation and processing plan

In early 2031 over a life of mine of 30 years. It is expected to create direct jobs for approximately 800 people per year and indirect jobs for approximately 1 600 people. During the construction phase, the project will have positive impact on socio economic environment through job creation estimated at 57 939 jobs of which 26 437 are expected to be direct jobs.

The economic benefit of implementing this project will see the local communities benefit through direct and indirect job creation. Further infrastructure development pertaining to water, electricity, roads and schools.

Jindal Africa’s aim in supporting the local community’s healthcare with the implementation of the project clinic and health services within areas surrounding the project. Jindal Africa has considered the high unemployment rate in this project area as one of its primary focus areas as we recognise education as one of the building blocks of any nation and considers it a major priority in the eradication of poverty through suitable measures aimed at benefiting the youth.

Such measures are strongly supported through the company’s long standing educational schemes namely bursary allocations, mentorship programs and career guidance for the youth through learnership programs. We recognise that reinvesting our resources in the development of young and promising minds helps create a source of well-trained workers and professionals who have a positive impact on our vision for the future.