[SMM Express] Transnet: signs contract with Kalagadi Manganese Industry to deliver 15.1 million tons of Minerals

SMM, Sept. 25 / PRNewswire-Asianet /-Transnet recently signed its tenth and final manganese contract, which plans to use 15.1 million tons of minerals in the export market and raise it to 18 million tons within three years. Transnet has signed a manganese rail contract with Kalagadi Manganese worth 3 billion rand, the tenth and last of the company's plans to ship 15.1 million tons to South African ports this year.

Kalagadi is building a 9 billion rand mine and sintering plant near Hotazel, Northern Cape, and has agreed to transfer 650000 tons of sinter, a higher grade manganese product in the steel industry than ore, in the first year, and then transfer another 1 million tons in the following years until October 2023.

Mike Fanucchi, Transnet's chief customer officer, said Transnet has now signed contracts for SA's 10 manganese producers, including eight new customers, many of which produce more than 2 million tons of ore a year. In the last fiscal year to the end of March, Transnet shipped 14.3 million tons and plans to transport 15.1 million tons by rail in the current fiscal year, adding that Transnet will increase production capacity to 18 million tons over the next three years.

Executive Chairman Daphne Mashile-Nkosi said that when Kalagadi reaches its planned annual production capacity of 2.4 million tons by 2021 / 2022, it will become the largest independent source of sinter production for steelmakers. We have invested in all the infrastructure, she says. Today is a historic moment. We have signed a contract, that is, an on-demand payment agreement. I can't fail. I have to deliver. The railway fast loading station in (Kalagadi), Calagadi, can correctly load 104 trucks, 63 tons each, in less than four hours.

Fanucchi said Transnet was using an earlier version of its manganese transport plan, not just at the dedicated manganese terminal at Coega near Port Elizabeth, using every available port in South Africa to export manganese. This arrangement, with the help of customers, has increased Transnet's production capacity from 5 million tons in 2012 to 15 million tons per year, at a cost of only 1/10 of the original budget of 29 billion rand. The next phase will cost about R2.5bn to increase annual production to 18 million tonnes in the next few years.

Thulo Malumise, chief executive of Kalagadi, said Kalagadi was testing prototype batteries developed by researchers funded by Kalagadi. The battery will be suitable for applications such as electric vehicles. It uses manganese, a mineral identified for energy storage, including lithium, cobalt, nickel, copper and vanadium. Kalagadi believes that the development of manganese is one of the key minerals in power storage and is a vital development for SA, which has 80 per cent of the world's known manganese resources and creates jobs and wealth for the country.

She said Kalagadi was keen to talk to other manufacturers in Northern Cape to establish its battery technology, prove that its battery technology could be used as a way to build industrial hubs, and potentially take advantage of smelters closed or underutilized by other manganese producers.

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