🕐01.02.10 - 06:42 Uhr

Press announcement: Sephaku to build a beneificiation plant



Press announcement 1 February 2010 Sephaku to build a beneficiation production facility at their Nokeng Fluorspar Mine - To produce aluminum fluoride which is used in aluminum smelters
Sephaku Fluoride (Pty) Limited (Sephaku Fluoride), a wholly owned subsidiary of Sephaku Holdings, today announces that it will establish a beneficiation production facility at their wholly owned Nokeng Fluorspar mine.

The production facility will consist of a sulphuric acid plant and a hydrogen fluoride plant and an aluminum fluoride plant.

A pre-feasibility study ("PFS") on the beneficiation production facility was completed at the end of 2009 by a co-ordinated effort of Venmyn Rand and input from several independent specialist consultants.

The studies required to complete a Definitive Feasibility Study (DFS) will commence shortly.


The Nokeng Fluorspar Mine also successfully completed a DFS by independent specialist consultants during October 2009 on its proposed Nokeng Fluorspar Project, which will include a fluorspar mine, concentrator plant and associated infrastructure and services.

The mine will enable Sephaku to become a major supplier of fluorspar following the commissioning of the plant in 2012.


The acid grade fluorspar produced by the Nokeng concentrator will be used as the sole feed to the production facility.

It is estimated that 60 000 tpa of aluminum fluoride will be produced through world class technology methods. Fluorspar and sulphuric acid are used create the hydrogen fluoride which is the raw material used to create aluminum fluoride.

Aluminum fluoride in turn is used as an accelerator in the aluminum smelting process.


Venmyn conducted a high level financial analysis to validate the feasibility and opportunities associated with the specific products and quantities to be produced by the production facility.

They also conducted a review of the market and the likely financial feasibility for each of these products. Aluminum fluoride is currently not produced in South Africa and a domestic demand from aluminum smelters and planned nuclear enrichment facilities exists.

There is also growing demand from the international market.


Neil Crafford Lazarus commented, "The combination of local aluminium fluoride production and economy of the supply will allow Sephaku Fluoride to be one of the lowest cost suppliers of aluminium fluoride in the market. Sephaku Fluoride will realize additional profits from the local production of high quality fluorspar, as well as from the highest quality aluminium fluoride, produced at the lowest operating costs using the latest technology".
ENDS
See SENS announcement for Venmyns fair value and range of values for the individual and combined facilities Notes to editors About Aluminum fluoride Aluminum fluoride is the inorganic compound with the formula Al F3.

This colourless solid can be prepared synthetically but also occurs in nature.

It is produced on a substantial scale for use in the production of aluminum.
Contacts: Sephaku CEO, Neil Crafford Lazarus 012 665 5060 Investor Relations, Nokuthula Dlamini Nxumalo 082 954 6644
Vestor, Media and Investor relations Louise Brugman, 083 504 1186
Logo_sharper02 media & investor relations
louise brugman managing director T: 011 787 3015 C: 083 504 1186 E:



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