Ironveld reports positive operational progress

The AIM-traded company said the refurbishment of the Rustenburg smelter complex was nearing completion, with the first shipments of high purity iron, titanium slag, and vanadium slag expected to meet the company's second quarter sales target.

It said the Rustenburg smelter was set to operate with two furnaces until July, when the third furnace would be brought online.

Full production capacity was still planned for the third quarter of 2023.

Ironveld Smelting had also signed a 30-year lease with the South African Government for 155 hectares of land in Limpopo.

The board said the site would host ore processing activities, and eventually larger smelting operations.

Ironveld said it was planning to repurpose existing buildings on the land for a clinic, accommodation, and office space.

The company said it had announced the signing of a binding legal agreement with BurnStar Technologies for the implementation of their patent-pending ‘guilt-free hydrogen’ technology at Ironveld's Rustenburg smelter.

BurnStar would install a plant capable of producing hydrogen from liquefied natural gas (LNG) at a rate of five kilograms per hour.

The hydrogen plant was expected to be operational by the end of 2023.

Ironveld said it would evaluate the use of hydrogen produced by BurnStar as a reducing agent in its smelting process, aiming to significantly reduce carbon consumption.

BurnStar was being supported by the South African venture capital and incubator fund, Savant.

Finally, Ironveld Mining had continued operations as planned, with mined ore being screened and crushed by subsidiary company, IPace, before transportation to the Rustenburg smelter complex.

The company said Ironveld Mining had also agreed to a 30-year lease for 312 hectares of land on the Altona licence for mining purposes.

It said the IPace joint venture, formed in January, was on track for its first product sales in mid-2023.

“We are delighted with progress at both the Limpopo mine site and the Rustenburg smelter,” said chief executive officer Martin Eales.

“As we prioritised the granulator refurbishment, the third furnace will now be online a couple of months behind original estimates, but we will soon be producing a much higher value product.”

Eales said a granulated product would mean that the material size would be reduced, enabling end users to use it more efficiently.

“We are also very pleased to have signed land leases adjacent to the mine for future development of a larger capacity smelter as part of our longer-term growth plan.”

At 1017 BST, shares in Ironveld were up 3.03% at 0.34p.

Reporting by Josh Whitie for Sharecast.com.