Description

The Boshoek smelter complex is situated approximately 21 km northwest of Rustenburg in the North West Province. The smelter complex consists of two 54 MVA closed submerged arc furnaces with charge preheating; a 520k tonne per annum pelletising and sintering plant based on Outokumpu technology; raw materials storage and handling area; slurry disposal area; slag stockpile area; storm water control infrastructure and runoff dam; dirty water dam; process water dam, temporary waste storage facility; provision for a railway siding; power supply facility; workshops; stores; chrome recovery jig plant and an administration complex.

Brief history of the operation

The Boshoek smelter was constructed by Merafe Resources Limited (Merafe Resources) in 2001 and successfully commissioned in 2002. The smelter now forms part of the Xstrata-Merafe Chrome Venture (the Venture) which was established on 1 July 2004. The Venture was formed as a result of an agreement concluded between Merafe Resources and Xstrata Alloys.

In terms of the agreement both companies pooled their ferrochrome operations to form the largest ferrochrome producer in the world and they share in the EBITDA (earning before interest, tax, depreciation and amortisation) of the Venture in the ratio of 79.5% (Xstrata) and 20.5% (Merafe Resources)

Merafe Resources was established in 1987 and is listed on the JSE Limited (JSE). It has a market capitalisation of over ZAR 1.8bn.

Shareholders – Merafe Resources:

• Royal Bafokeng Resources – 31%
• Industrial Development Corporation – 23%
• Allan Gray – 14%
• Minorities – 32%

Project related facts:

• Project cost ca. R700 million;
• Peak construction labour- approx 1 800;
• Excavation works 300 000m3
• Structural steelwork 8 500 tonnes
• 22 000 m3 Concrete with 2 500t of steel reinforcement
• 100 km Electrical cabling
• 12 Major subcontractors used

Performance facts:

• March 2001 - Work commenced on the project.
• 13 June 2002 - First furnace tap conducted
• 01 July 2004 - Xstrata-Merafe Chrome Venture established

Sustainability

• The Xstrata-Merafe Chrome Venture is committed to develop our people through:
• Education assistance programme (financial assistance).
• Technical training in the form of learner ships which we offer to employees and members of the local community.
• Adult Basic Education Training to previously disadvantaged employees and members of the community.
• The establishment of the operation in its specific relatively rural location saw a concerted, targeted drive to recruit and train employees from local and surrounding communities, with cognisance for the broader requirements of the Employment Equity Act and Mining Charter.
• The drive has seen numerous enthusiastic, young and aspiring candidates successfully brought into the staff compliment, progressively trained and developed on site to relatively senior supervisory levels.

Our Community:

• While initial attention was staff-centric; the progressive maturation of the site and corporate presence gained through the establishment of the Venture has recently allowed focus to be broadened to the local and surrounding communities;
• Programmes of engagement with the local community have been expanded and are being integrated into the extensive community interaction efforts spearheaded at corporate level

HSEC – Environmental Performance

The closed furnace operation, incorporating preheating and agglomeration has a specifically smaller than usual environmental footprint

• Extensive use of UG2 chromite – a by-product from local platinum mining activities;
• High metallurgical and energy efficiency inherent to the process

The Boshoek Smelter was ISO 9000 certified in May 2004. Based on successful implementation of ISO 9001:2000 Management system, a fully Integrated Management system was put in place, incorporating all the principles of the 17 Xstrata Corporate Standards and working towards certification in accordance with ISO 14001 and ISO 18001. Fully participative and successful EIA and EMPR processes were followed.

Air Quality, Environmental and Bio-monitoring programmes were established, with commendations received from Regional CAPCO with regard to site performance in control and monitoring of APC aspects

HSEC – Safety & Health Performance

• Introduction of a Behavioural Based Safety system, with subsequent reinforcement with expert professional guidance
• Intensive campaign to achieve full alignment of operational activities with Xstrata Corporate Standards;
• Specific attention to HIV/AIDS awareness, following extensive prevalence testing in late 2003, highly successful Voluntary Counselling and Testing campaign conducted in 2005, with extremely successful participation from our employees