15th Aug 2014 07:22
LONDON (Alliance News) - Ironveld PLC said Friday that it has submitted its final scoping report to the Republic of South Africa's Limpopo Department of Economic Development, Environment and Tourism for the 15 megawatt DC Arc furnace the company intends to build on farm Altona 696LR.
Submitting the report is an important part of the approvals required by the National Environmental Management Act 107 of 1998 which will allow the company to meet its project schedule where production is expected late 2015.
The South African pig iron developer is developing a pig iron project in the Bushveld Complex in Limpopo Province, South Africa. It has prospecting rights on seven adjacent farms, and intends to mine iron ore as a feedstock for its own pig iron plant.
"This is a significant step which brings us closer to delivering the 15MW smelter on budget and on schedule. As our Definitive Feasibility Study published in April 2014 demonstrated, the 15MW smelter is a robust project and will be cash flow positive from commencement of production," said Peter Cox, CEO of Ironveld:
Ironveld Wednesday said it had submitted a tax allowance incentive application to the South African government for its smelter at the project, which, if approved, would give it an estimated GBP2.8 million allowance it would plough back into the development of the smelter. The allowance is designed to support greenfield investments and offers support for capital investment and training.
The company said it hopes to have a decision on the tax allowance from the South African Department of Trade and Industry in early September.
Shares in Ironveld were quoted at 7.625 pence per share Friday, untraded.
By Alice Attwood; [email protected]; @AliceAtAlliance
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