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Kropz flags US$49M impairment on delayed development at Elandsfontein

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Kropz flags US$49M impairment on delayed development at Elandsfontein

Phosphate miner Kropz PLC expects a delay in reaching production at its Elandsfontein mine in South Africa, saying it will take at least until year-end to conduct further test work, engineering design and associated financial modeling to define an alternative process.

The company said Sept. 12 that it expects to record an impairment of about US$49 million at Elandsfontein in its first half results to account for the delays and lower forecast for phosphate rock prices.

Previous test work identified that a reverse flotation modification to the current circuit would produce salable product but at a lower grade than originally targeted.

"As a direct consequence of the prevailing depressed phosphate rock prices, an alternate process modification is being considered to deliver the required process efficiencies at viable economic returns," the company said.

Meanwhile, an appeal against Elandsfontein's integrated water use license, which was set to be heard by the water tribunal Sept. 11, was postponed on the appellant's request.