Tito Mboweni and his brother Alto have signed a memorandum of understanding to take a 20% stake in Ferrox Holdings for a consideration of $32-million.
Former South African Reserve Bank governor Tito Mboweni and his brother Alto, have signed a memorandum of understanding to take a 20% stake in Ferrox Holdings for a consideration of $32-million.
Ferrox Holdings plans to develop the Tivani iron ore project in South Africa’s Limpopo province. The project may also be developed for the production of ilmenite concentrate for the production of titanium dioxide.
The memorandum has been signed with Mboweni Brothers Investment Holdings, founded by Tito and Alto.
Tito Mboweni is currently chairperson of South Africa-based global gold mining company, AngloGold Ashanti and non-executive chairperson of Nampak. He is also an international advisor to New York-based investment bank Goldman Sachs.
Alto Mboweni is a chemical engineer with over 10 years’ operational, process design and process modelling experience in the oil, gas and energy sectors. He has been involved, in various consulting capacities, with clients such as Petronas, Chevron and ExxonMobil.
Ferrox CEO David McAdam said: “We are extremely pleased to have at our side a partner such as Mboweni Brothers Investment Holdings, with founders of the calibre of Tito and Alto Mboweni. We share their commitment to advance the Tivani project—one of the most significant deposits of its kind in South Africa—into a major African iron ore producer and, through this, to advance development within Limpopo province.”
Ferrox, currently privately held and British Virgin Islands-registered, has a 74% indirect interest in the Tivani iron ore project through its 100% indirect ownership of South African subsidiary Tivani (Proprietary) Limited. The company also has a 100% indirect interest in another South African subsidiary, Tzaneen Mining Projects, which has procured other prospecting rights with significant additional resources in Limpopo.
To date, Ferrox has confirmed 470Mt of measured, indicated and inferred resources, compliant with and reporting to Canadian NI 43-101 standards. Significant additional resources under its control are currently being evaluated, together with possible iron ore beneficiation to pig iron or steel in Limpopo, and the value added production of titanium and vanadium.
Ferrox plans to raise $150-million over the next 12 months for additional working capital to start iron ore production at Tivani, and for drilling programmes to conform to NI 43-101 standards its additional resource base.
Run of mine production of 10Mtpa iron ore is envisaged from the Tivani project, starting within the next 24 months and ramping up to full production over 36 to 48 months. At full production, approximately 2.5Mtpa of iron concentrate will be generated for beneficiation within South Africa or for export.
If smelted, an estimated 1.5Mtpa of pig iron or steel would be produced, in addition to titanium dioxide slag and vanadium pentoxide. The production of approximately 500 000 to 800 000tpa of ilmenite is also being evaluated.—I-Net Bridge