South Africa's MDM Engineering Group announced that it has been awarded the engineering, design, project and construction management for Kalagadi Manganese's crushing and screening plant, for the Umtu Project currently under construction at Hotazel in South Africa.
MDM has been involved with the project since 2007 with the award of the Bankable Feasibility Study which was completed in 2008. MDM also completed the Front End Engineering and Design for this project in early 2009. This award is an extension of the current EDPCM contract awarded to MDM in November 2010. The project scope that MDM is responsible for is increased by an estimated value of some USD 50 million.
Mr George Bennett executive director of MDM said that "This increase in the scope of work reaffirms MDM's strong relationship with the Kalagadi team and our commitment to assisting Kalagadi with the development of this major project which will be the first black economic empowerment grass roots mining project developed and controlled by women in South Africa. It is the third manganese project that MDM has been involved in over the last three years in South Africa and confirms MDM's expertise in designing manganese process plants."
The Kalagadi manganese project comprises an underground mine and associated process and sinter plant (another MDM project) designed to handle some 3 million tons of run of mine ore per annum. The mining method to be used will be room and pillar and will be completely mechanized using trackless mining equipment. The project is effectively a JV between Kalahari Resources with 40% and the world's largest steel producer ArcelorMittal, with 50% and which will take up the output.
South Africa's Industrial Development Corporation, which is a self financing, state owned national development finance institution that provides financing to entrepreneurs and businesses engaged in competitive industries, holds the 10% balance.
MDM has been building up a good project pipeline after a few setbacks last year with project delays and cancellations. Talking to Mineweb in London recently, George Bennett, and CEO Martin Smith, both emphasized the strong amount of ongoing work the company has recently been contracted to undertake, notably in South Africa and the DRC, with a number of other potential projects for which bids have been put in, and for which the company is confident it is well placed to be awarded.
