HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Timmins and the Sault...Could they both be winners?

I noticed this article a couple of weeks ago ..and it seems folks like Xstrata did a good job in South Africa applying the presssure. 

There is so much interesting stuff in these links but this particular portion made me think about the final remaining Timmins-Sault smelter candidates. Why wouldn't they both win a smelter??

A ferrochrome smelter for Timmins and a Stainless steel smelter for the Sault ..who has the Port of Algoma. They both win.

"Whereas the location of a ferrochrome smelter is ideally adjacent to a chrome mine, stainless steel smelters are typically located near a port to access imports of stainless scrap, nickel and ferrochrome."

Location of a stainless smelter is further dependent on proximity to end-use stainless steel markets.

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South Africa realized ...let China invest in our country rather than we give then raw chrome ore. You can see below that China is listening..

I see the same happening in the ROF. China will most likely invest as Alan Coutts indicated with Baosteel as shareholder. Canada will not give raw chrome to China. And it looks like neither will anyone other country...anymore

https://www.reuters.com/article/us-safrica-brics-china/chinese-investors-plan-10-billion-metallurgical-complex-in-south-africa-idUSKBN1KH1E8

Chinese investors signed agreements to build a $10 billion metallurgical complex in South Africa during President Xi Jinping’s state visit this week and hope to start construction next year, an executive involved in the project and a provincial official told Reuters.

https://www.portsregulator.org/images/documents/XSTRATA_submission-Position_Paper_on_Beneficiation.pdf

South Africa’s competitiveness in ferrochrome does not extend to stainless steel.

Although 90% of the world’s ferrochrome production is consumed in the production of stainless steel, ferrochrome represents between ca. 3-4% of the value in finished stainless steel product (Exhibit 2) depending on the stainless scrap ratio (typically 40%). Nickel and Stainless scrap are both major materials used in the production of stainless steel and as such are more important drivers of competitiveness for stainless steel production.

Whereas the location of a ferrochrome smelter is ideally adjacent to a chrome mine, stainless steel smelters are typically located near a port to access imports of stainless scrap, nickel and ferrochrome.

Location of a stainless smelter is further dependent on proximity to end-use stainless steel markets. South Africa, whilst endowed with chrome ore, is still reliant on the import of nickel and stainless scrap and is further disadvantaged by the absence of end-use stainless steel markets.

.......

 China’s trade policy imposes a heavier duty on ferrochrome imports than ore imports in order to support the domestic ferrochrome industry. The duties on ferrochrome imports in China is ca. 20% higher than duties on the import of ore.

https://www.altermining.com/the-case-for-a-chromium-ore-export-ban/

South Africa has state of the art ferrochrome production capacities. This allows for the absorption of the extra-chrome ore made available through banning exports, and therefore the domestic price of chrome ore won’t collapse. The mining of chrome ore will continue to flourish.

China itself might be interested in relocating some of its ferrochrome production facilities to South Africa if the policy of banning chromium ore exports is clearly and predictably enforced, while the aim of the policy – increasing South Africa’s production of ferrochrome – is openly stated and pursued. When Indonesia banned nickel ore exports, for instance, China began to invest in Indonesia (see here for details: https://www.altermining.com/mineral-export-ban-i-the-case-of-indonesia/).

Banning chromium ore exports with the aim of becoming the world’s largest exporter of ferrochrome will obviously generate a lot of new jobs in the processing industry, with a positive impact on our economy. And since ferrochrome is a value-added product, by exporting more ferrochrome and less chromium ore South Africa will get more money into its coffers. Finally, supporting ferrochrome production will lead to the development of the steel industry in South Africa, with even more economic benefits. This is exactly what happened in India, for instance (see here for details: https://www.altermining.com/mineral-export-ban-ii-the-case-of-india/)

To sum it up, AlterMining is asking for three things from the South African government, from our political parties and from all of us as South African citizens:

1. A ban on chromium ore exports.
2. A system of incentives that stimulates local and foreign investors to invest in processing facilities and in power plants.
3. A system of incentives that stimulates ferrochrome producers to invest in the training of their employees and potential employees.

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