M a r k e t N e w s

Phosphorite mining exploration investment opportunity

Posted on : Monday, 24th November 2014

 Baobab Equity Management (Pty) Ltd is a Namibian owned company that was awarded an Exploration Prospecting Licence (EPL) to explore for phosphorites off the shores of Namibia in 2010. The company appointed a South African based geological expert to perform a preliminary desktop review of the deposit.

 
The size of the shelf phosphorite deposit is impressive in terms of extent and phosphorite content. The EPL occurs within the southern extent of the large north-south trending middle to outer shelf phosphorite deposit offshore Namibia between Walvis Bay and Hottentots Bay. Based on extrapolation of better known areas to the north, the potential economic resource of the EPL is estimated to be between 100 and 700 metric tons.
 
Phosphorites are extremely important for fertiliser used in large scale commercial agriculture. Phosphorite fertilizer is manufactured from rock phosphorite. The fertiliser produced from phosphorites comes in either liquid or dry form. There are six major forms and the choice of which to use is based primarily on fit with farming operations and cost. The rush for phosphorites has been driven by the Indians and Chinese as they have many mouths to feed and phosphorite fertiliser has been proven to produce some of the best agricultural yields in large scale commercial agriculture projects.
 
For Namibia, given climate and water scarcity phosphorite fertilisers make a lot of sense. But the major market potential lies in the export of the phosphorite fertiliser (from fertiliser plants) or rock phosphorites (from mining operations). Both of the two advanced projects are contemplating processing plants. Sandpiper has included the construction of a plant at Walvis Bay in its feasibility study and found it to be feasible. Samicor is considering the construction of a plant at Luderitz. Any production can be processed at either of these.
 
Phosphorites were used in detergents in North American until the early '90s but is no longer used due to weed and tree root proliferation in the sewerage systems of major cities and the growth of organisms in lakes and rivers. However, it is still used in water based paints and coatings, flame retardants for textiles, as polish for aliminium and aluminium alloys and cleaning products.
 
In order to do a more detailed feasibility study, which will provide the data necessary to derive an improved estimate of the resource ore and grade, and an environmental impact analysis to eventually apply for a full mining licence, the directors of the company are looking for financing and are therefore keen on giving away 51% of the equity of the business in return for US$7.5 million.
 

Source : www.frontiermarketnetwork.com
Featured Companies
  • /
  • African Business Development Association
  • /
  • TITAN Containers A/S
  • Mercury Tube Products
  • SMES Today Magazine
  • DOOREE INTERNATIONAL CO LTD
  • africabusiness.com
  • Your Banner HERE!

Complete List  

Advertisers:

Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2021 Afrotrade