Chrome and platinum group metals (PGMs) miner Tharisa has begun extensive testing of its R1bn Vulcan ultrafine chrome recovery plant, which remains on track for its first saleable production by the end of 2021.
JSE and London-listed Tharisa operates a mine near Brits in the North West and has two plants to recover chrome and PGMs, Voyager and Genesis. Its research & development team has developed a process to catch fine particles of chrome that pass through conventional chrome-processing circuits.
The group initiated the Vulcan project in August 2019, targeting completion by the end of 2020, but it was delayed in March 2020 due to Covid-19, with the project resuming in October of that year.
The group said on Tuesday it had begun cold commissioning of the plant, which refers to extensive testing of systems, but without using feed materials.
The project, which will process live tailings produced by Voyager and Genesis, is expected to increase chrome recoveries by 20 percentage points to 82%. That will lead to lower production costs as fixed expenditure is offset against higher volumes of chrome output, which will also lower the group’s relative carbon emissions.
“Commissioning of the Vulcan plant perfectly exemplifies two Tharisa philosophies: challenging convention through innovation and delivering on our promise of maximising value through beneficiation of every cube mined,” said Tharisa CEO Phoevos Pouroulis.
“I am particularly proud of the team having achieved this milestone, safely, despite SA going through a second and even more hard-hitting third wave which saw hundreds of man-hours lost due to Covid-19 infections,” he said.
Chrome is an essential ingredient in the manufacturing of stainless steel. Specialty grades of chrome are used in foundries, leather tanning, wood preservatives and paints.
SA is the world’s largest source of chrome ore, the bulk of which is sold to Chinese ferrochrome plants, and is also a supplier of ferrochrome.
Tharisa Mine near Rustenburg has a 14-year remaining open-pit life and a further 40 years underground, with Tharisa saying that Vulcan will ensure maximum value extraction and beneficiation of the chrome ore.
Tharisa’s shares were up 6.59% to R22.01 in afternoon trade on Tuesday, on track for their best day in almost three weeks. The stock has risen 46% so far in 2021.
Update: October 5 2021
This article has been updated with share price information.
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