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A presentation to SA Port A presentation to SA Port Operations: May 2007Operations: May 2007
Logistics requirements for the Community –Logistics requirements for the Community –based KwaMkhizwana Granite Mining and based KwaMkhizwana Granite Mining and Beneficiation Export Project for KZN.Beneficiation Export Project for KZN.
Transport from Quarry to Port, temporary Transport from Quarry to Port, temporary storage and loading on board for export storage and loading on board for export shipment:shipment:
(a) Dimension Blocks for break-bulk shipment(a) Dimension Blocks for break-bulk shipment (including block sterile washing service).(including block sterile washing service).
(b) Containerised Blocks and semi-finished products (b) Containerised Blocks and semi-finished products for Export shipments (far east). for Export shipments (far east).
KwaMkhizwana Granite Quarry KwaMkhizwana Granite Quarry and Beneficiation Projectand Beneficiation Project
Quarry previously operated by Natal Granite (Pty) Ltd a subsidiary Quarry previously operated by Natal Granite (Pty) Ltd a subsidiary of Kelgran. Operations ceased in 1998 and Mining Right expired of Kelgran. Operations ceased in 1998 and Mining Right expired 2002.2002.
Community at KwaMkhizwana interacted with Vuka Zithathe Community at KwaMkhizwana interacted with Vuka Zithathe Institute to find replacement partner to restart the quarry Institute to find replacement partner to restart the quarry operation in 2002.operation in 2002.
Grafrex was introduced in 2003 and after 3 years of interaction Grafrex was introduced in 2003 and after 3 years of interaction assisted the community co-operative with their application assisted the community co-operative with their application process at DME through 2003 to 2007.process at DME through 2003 to 2007.
Grafrex introduced off-take clients from Italy and China in 2005/6 Grafrex introduced off-take clients from Italy and China in 2005/6 with a J/V agreement finalised late 2006 with Copper Moon with a J/V agreement finalised late 2006 with Copper Moon Trading Co for export deliveries to China and also off-take letters Trading Co for export deliveries to China and also off-take letters of intent from two Italian clients.of intent from two Italian clients.
Mining Right application end May 2006 and EIA/ EMP submitted Mining Right application end May 2006 and EIA/ EMP submitted Dec 2006. Awaiting clearance of rehabilitation impasse with old Dec 2006. Awaiting clearance of rehabilitation impasse with old operator and release of permission from DME to go onsite as at operator and release of permission from DME to go onsite as at May 2007.May 2007.
Application to Ingonyama Trust Board submitted Feb 2007 for Application to Ingonyama Trust Board submitted Feb 2007 for long-term lease over the land (3 000 Ha), where the quarry is long-term lease over the land (3 000 Ha), where the quarry is located in Inanda reserve (at KwaMkhizwana) in KZN.located in Inanda reserve (at KwaMkhizwana) in KZN.
Granite 3 5Quarry [ Between to quarries in future].
Mechanic'sAssistant
ContractMiner
ServiceMechanic
AdministrationManager
General Manager & Quarry Master
TeamLeader
TeamLeader
TeamLeader
3 Rock DrillOperators
3 GeneralLaborers
Officecleaner
Safety Officer &Stores controller.
3 Rock DrillOperators
3 Rock DrillOperators
Cat 988Operator
Cat 330Operator
Bell B 30Operator
SpareMachineOperator
SecurityGuard
SecurityGuard
SecurityGuard
SecurityGuard
28 to 32 employees / quarryOne Granite quarry can output up to 500 cu m /month ofdimension blocks (with one set of operating machinery)
AggregateGraveStones
CementBlocks
-On Site-By Products
Operations
WasteRock
Sand &Gravel
Nursery & Hydro mulch
PavingCobbles
CommunityGardenSupport
CrushingPlant
FreshProduce
Pack blocks into export containers for China
Land &FactoryFacilities
Granite Processing Factory Finished Products
for Export:Warehousing/
Packing/ Transport
Batching Plant
-Supply side Granite Mining
KwaShangase
SMMEprocessingopportunities
Rehabilitation
-Supply side Granite Mining
KwaXimba
Admin
Scrap Blocks
GraniteQuarry
DimensionBlocks
SmallWaste
Export "A"Grade
Export "B"Grade
CrusherRun
Fines
PavingCobbles
Kerbstones
Sales
Ops &Maintenance
Transport
Handstone
ConcreteProducts
BatchingPlant
Roadstone
UAE
Other
CHINA
Precast
CementBlocks
EU
Kw
aMkh
izw
ana
Gra
nite
For
war
d V
iew
KwaMkhizwana
GraniteQuarries
OthersHaul
Containers tosite
TransportLogistics
Haul packed containers to
port
Trim Blocks-on site
PrimaryProcessing
Cut some -slabs on site
RecoverWaste
SMMEdownstreamoperations
PackContainers
-on site
KZN Granite Dimension Stone Block quarrying and Beneficiation project for Export
KwaXimba Haul raw Blocks to Port
HaulAggregate
MiningSupplies
Secondary "Waste "Products
-On SiteGantrywashing
and loadingfacility
NDA
DoA
LandBank
InputAgencies
GTZ
USAID
KZNGF
IDC
KwaMkhizwana: Granite Mining KwaMkhizwana: Granite Mining & Associated Rural Projects.& Associated Rural Projects.
Proposed Community Participation Mines etc:Proposed Community Participation Mines etc: Ownership of Mining Right on application to DME.Ownership of Mining Right on application to DME. J/V partnerships with Granite Block Mining contracting. J/V partnerships with Granite Block Mining contracting.
specialists (Community holds Mining Right & land lease).specialists (Community holds Mining Right & land lease). Owner-operators for transportation trucks & Equipments for Owner-operators for transportation trucks & Equipments for
the quarries.the quarries. J/V Partnerships for all SMME operations (Crusher plant/ J/V Partnerships for all SMME operations (Crusher plant/
Grave stones/ Paving cobblestones/ Cement block plants/ Grave stones/ Paving cobblestones/ Cement block plants/ Rehabilitation Seedling Nurseries etc).Rehabilitation Seedling Nurseries etc).
Capital Funding via Ithala KZNGF and others for Community.Capital Funding via Ithala KZNGF and others for Community. Possible set-up of Community Co-operative to manage these Possible set-up of Community Co-operative to manage these
community participations, skills transfer, training and community participations, skills transfer, training and mentoring as required to ensure management participation.mentoring as required to ensure management participation.
Cato Ridge: Cato Ridge: (50% owned by Italian (50% owned by Italian
investor):investor): Bargraf Granite Bargraf Granite Processing FactoryProcessing Factory
Possible Local Area Participation in RSA 50%:Possible Local Area Participation in RSA 50%: Provision and supply of Provision and supply of land and suitable infrastructureland and suitable infrastructure into the factory into the factory
project would entitle the land-supplier to a proportionate share of the project would entitle the land-supplier to a proportionate share of the manufacturing project, (based on land value vs. overall project value).manufacturing project, (based on land value vs. overall project value).
Additional Additional Equity capital participationEquity capital participation, via Equity-loan into the , via Equity-loan into the manufacturing company, using institutional funding (DBSA / IDC / manufacturing company, using institutional funding (DBSA / IDC / KZNGF etc) via BEE partnership into the main project KZNGF etc) via BEE partnership into the main project Joint VentureJoint Venture with with Italian Investor.Italian Investor.
Reverse Reverse exchange shareholdingexchange shareholding between “Processing Plant” and between “Processing Plant” and “Supply-side Mining operations”; e.g. Mines’ communities collectively “Supply-side Mining operations”; e.g. Mines’ communities collectively obtain % shareholding in factory, in exchange of equivalent obtain % shareholding in factory, in exchange of equivalent shareholding by the Factory in the mining operations.shareholding by the Factory in the mining operations.
SUMMARY: Mkhizwana Granite Quarry for Export 1. Require a logistics solution for removal of product from the
quarry and delivery to Clients.
2. Need a Gantry system for handling unloading of empty containers. Packing of containers, re-loading of containers and loading of Blocks
3. Need Block washing and trimming facility on-site at quarry to be integrated with gantry system for loading dimension blocks:a) Into containers for Chinese market via container port.b) Onto flatbed trucks for delivery direct to port.
4. Secondary local Transport systems for removal of semi-finished products from site ( Monumental Slabs, Paving cobbles, kerb Stones, cement blocks etc) and for delivery to local clients of the aggregate stone (from Crusher plant) for road works, rail ballast etc.
Presentation to SAPO contributed by Grafrex (Pty) Ltd on behalf of Mkhizwana Granite Mining and Beneficiation (Pty) Ltd May 2007