Leshobo Technical Report_October2016

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

10. MARKET ANALYSIS
10.1 Demand

The global market for limestone is projected to exceed 5.5 billion tons by 2022 and this
will be driven by rising demand for cement, agriculture and steel production (SAMI,
2009/2010 and Global Industry Analysts, 2016). Most of billion tonnes of limestone
consumed annually is used in the manufacture of cement or as flux input in the
metallurgical industries (SAMI, 2009/2010). Demand for cement is also driven driven by
urbanisation and infrastructure development (SAMI, 2009/2010). The local industry is
comprised of four main cement producers: PPC (Pretoria Portland Cement) which is the
largest cement producer with a 40% market share which is then followed by, Afrisam
(29.5%), Lafarge (17.5%) and NPC-Cimpor (7%) (SAMI, 2009/2010).

Sephaku Cement is the first new competitor in the inland market since 1934 and started
production by early 2014 (Heyns, 2013). Sephaku is a joint venture between Sephaku
investment group and a Nigerian based company, Dangote cement (SAMI, 2009/2010).
This will add a significant share of low-cost capacity to the inland market and is likely
to result in increased competition (Heyns, 2013). Sephaku is already exerting pressure
on existing companies to optimise their capacity to compete with its new equipment
(Heyns, 2013). Cement market is driven by economic and population growth, and
infrastructure investment is a key determinant of demand growth so with the growing
population, demand for cement is expected to grow tremendously (Heyns, 2013).

Cement is the key ingredient in concrete, an essential component in the construction of
most buildings and structures (Heyns, 2013). Cement market is driven by economic and
population growth, and infrastructure investment is a key determinant of demand
growth so with the growing population, demand for cement is expected to grow
tremendously (Heyns, 2013).

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The local sales volume of lime declined by 12.8 percent to 1.38 Mt compared with the
previous years as a result of a downturn in the local steel and alloy industries (SAMI,
2009/2010). Sales volume of quicklime for pyrometallurgical and chemical applications
decreased by 12 percent to 1.26 Mt however, sales revenue of quicklime increased by
17 percent to R9.2 billion compared to the previous years. Hydrated lime sales to the
water purification sector increased by 11 percent to 49 kt due to increased water
demand in the metropolitan areas and in the chemical sector, sales of hydrated lime
decreased by 43 percent to 34 kt as a result of cutbacks in production by several
mining operations using hydrated lime.

DEMAND FOR CEMENTATIOUS PRODUCTS

48% Resellers
19% Readymix
15% Concrete products
6% Civil
5% Blenders
4% Building
2% Other
1% Mining

Figure 10.1 Shows the demand for cementitious products (SAMI, 2009/2010)

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

10.2 Expansions in the cement industry
New entrant

Sephaku Cement is the first new competitor in the inland market since 1934 and started
production by early 2014 .With the construction of its cement plant near Lichtenburg
and a grinding facility in Delmas, it is expected to add 2.6 million tons of capacity with
new and more efficient equipment. Apart from gaining market share, the additional
capacity is bound to lead to lower retail cement price growth. Sephaku is already
exerting pressure on existing companies to optimise their capacity to compete with its
new equipment.

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11. PRODUCT SPECIFICATION

PRODUCT PRODUCT SPECIFICATION

LIMESTONE
(CALCIUM CARBONATE)

CaCO3 94.00 % min. (52.6 % CaO)
MgCO3 4.20 % max. (2.0 % MgO)
FeO3 0.20 % maximum
Al2O3 0.40 % maximum
SiO2 1.5 % maximum
LOI 43.6 %
Total Acid Insolubles 2.00 % maximum
Trace Element (max ppm) Cr Cu Co Ni V Mn
5 5 3 3 3 60
Moisture Content (Max) 1.0 % (as received)
Particle Size : Client’s requirements

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

12. CONCLUSIONS AND RECOMMENDATIONS

Limestone deposits were discovered in Taung, south of Vryburg in the North-West
Province. The limestones fall in the Monteville Formation of the Ghaap Group,
Griqualand West Basin of the Transvaal Supergroup. Exploration commenced in 2014,
and carried on through 2015 to 2016. Desktop studies and reconnaissance
exploration showed a good indication and this motivated for a detailed exploration.
Geological mapping, which shows the shape and behaviour of the deposit was
conducted, followed by detailed geochemical sampling. From the first round of
sampling, the limestone indicates good quality with grades that range between 85.16%
and 95.78%. MgO and SiO2 are also within tolerable amounts and this renders the
limestone to be usable in many applications. The second round of sampling was
conducted and the samples results are yet to be received.
It is recommended that a drilling campaign be conducted in order to get the depth
and to accurately estimate the tonnage of the deposit. Drilling will also permit us to
determine the overall grade distribution by sampling the drilled core. After the drilling,
targets can then be generated and a mining plan can be conducted.

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13. REFERENCES

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

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Leshobo Limestone Project Area

CONTACT HEAD OFFICE REGIONAL OFFICE POSTAL
Tel: +27 15 291 2341 18 Biccard Str. 12 Mazinde Str. P O Box 581
[email protected] Polokwane Mikocheni B Bendor
www.geopointafrica.co.za 0699 Dar es Salaam 0713
South Africa Tanzania South Africa