JOHANNESBURG (miningweekly.com) - The world's third-biggest platinum producer Lonmin signed two contracts for the construction of chrome recovery plants (CRPs) to treat tailings from its UG2 concentrators at its Marikana operation in South Africa.
The company announced on Tuesday that it had signed two separate contracts with the Xstrata-Merafe chrome venture and ChromTech for the construction of the two CRPs.
Under the terms of the contracts, the Xstrata-Merafe chrome venture and ChromTech would purchase the chromite concentrate produced from the CRP;s, which were expected to be in full production by the second half of Lonmin s 2011 financial year.
ChromTech would treat about 0,3-million tons a year of chromite concentrate contained in the tailings feed over a five-year period.
The duration of the contract with the Xstrata-Merafe Chrome Venture was based on total volume treated, rather than a fixed time period, and the company would be expected to treat about 1,5-million tons a year of chromite concentrate contained in the tailings.
Further, Lonmin had started an initial design study relating to the construction of PGM recovery plants to recover PGM s from the UG2 tailings, following the removal of the chrome.
This process is expected to improve overall concentrator recoveries.
Lonmin CEO Ian Farmer commented that the agreements marked the continuation of a trend across the industry as PGM producers look to realise value through chrome by-product revenues and improved PGM recoveries.
