Xstrata Rhovan operation is situated approximately 30km to the north-west of Brits in the North-West Province. The mineral deposit comprises a vanadiferous, titaniferous magnetite gabbro with the vanadium occurring in the magnetite. The mining is performed by opencast mining methods.

Xstrata Alloys and the Bakwena Ba Mogopa Traditional Community (the “Community”) have agreed terms for a R575 million Black Economic Empowerment (BEE) transaction in respect of Xstrata’s fully integrated Rhovan vanadium facility near Brits in the North West Province, South Africa. The Community is the surface owner of the property on which the facility is located. Through the transaction, the Community will have an effective 26% participation in the Xstrata Alloys vanadium business through a Pooling and Sharing Venture, similar to the Xstrata-Merafe Chrome Venture. The main products produced are ferrovanadium and vanadium pentoxide.

Mining commenced in 1989 and is performed by opencast mining method. The Concentrate Plant at Rhovan was also constructed at the same time and commissioned to supply magnetite concentrate to Union Steel Corporation Limited (“USCO”) in Vereeniging. In 1993/1994, the Processing Plant to process the concentrate to V205 was constructed. The concentrating process was commissioned during May 1994.

Sudelektra South Africa (a subsidiary of Sudelektra Holdings) acquired the total share capital in the Operations in 1998. In 1999 Sudelektra South Africa changed its name to Xstrata South Africa (Pty) Ltd. In 2002, the Ferrovanadium Plant was constructed and produced the first Ferrovanadium by September that year.

In 2004/2005, it was decided to increase production at Xstrata Alloys Rhovan Operations. An expansion project was initiated with the required regulatory approval to be obtained prior to construction and production increase.