SamQuarz is the largest producer of high-quality silica in South Africa. Acquired by the Group in September 2004 for a consideration of R63 million, it produces approximately 35% of South Africa's total annual silica consumption. The mine is located 85km east of Johannesburg near Delmas in the Mpumalanga Province.
The silica deposit at the SamQuarz mine occupies a mega sinkhole and contains quartzite, chert and waste rock. The quartzite mined at the site is typically of a high purity (>98% silica), while the chert material comprises 97% silica. Mining at SamQuarz is conducted via conventional open-pit drill and blast procedures from multiple benches. The mine comprises two pits, North and South, which are being joined together. The combined final pit area is expected to be approximately 46ha, with a depth of 240m.
In operation since 1957, SamQuarz currently has a 10-year life of mine (LOM) at an average run-of-mine (ROM) production level of 1.6Mtpa (1.3Mtpa saleable product). An exploration drilling programme is under way and scheduled for completion in FY2008. This may double the proven reserves, resulting in a LOM, according to the SAMREC Code, of more than 20 years at current production levels.
SamQuarz produces glass-grade silica sand, metallurgical grade silica rock and metallurgical grade chert. The glass-grade silica sand is of extremely high quality. SamQuarz is the sole supplier of such silica sand to PFG, South Africa's only manufacturer of flat glass, and is the major supplier of such silica sand to South Africa's main manufacturer of clear glass, Consol Glass. SamQuarz also supplies silica sand to other glass manufacturers. The metallurgical grade silica and chert are used as a flux in the metallurgical process. SamQuarz customers in the metallurgical sector include Xstrata Chrome, Samancor, the Evraz Group’s Highveld Steel and Vandadium operation, Arcelor Mittal and Siltech. The operation has also recently started selling sized by-product for use as an aggregate by customers in the construction industry and expects to be a major supplier of G1 road-building material in South Africa in the next few years.
The operation has a modern German-designed and - constructed processing plant, commissioned in 2001 by the mine's previous owners at a cost of R105 million. Product is transported to customers by rail or road. SamQuarz owns its own railway siding to facilitate loading of silica products for onward transportation to customers. Electricity is currently provided through an Eskom power line from a shared network. Potable water is drawn from boreholes on site. In addition, SamQuarz maintains its own ISO 9001-compliant laboratory which carries out continual routine sampling analysis as well as analysis of all outgoing consignments.
© 2008 Petmin Limited
SamQuarz continues to be the largest producer of silica in South Africa
