Critical Infrastructure Programme Application

RNS Number : 0531F

Ironveld PLC

17 February 2015

 

17 February 2015

Ironveld plc ("Ironveld" or the "Company")

Critical Infrastructure Programme application approved

Grant of up to 13.3 million Rand (c. £740k) by the Department of Trade and Industry

Ironveld plc, the High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa is pleased to announce that, further to the announcement of 22 October 2014, its Critical Infrastructure Programme ("CIP") application for its 15MW smelter has been approved by the Republic of South Africa's Department of Trade and Industry (the "DTI").

Highlights:

·     CIP grant awarded to Ironveld from the DTI for its 15MW smelter.

·     The CIP is a cost-sharing grant of 30% of the total infrastructure development costs up to a maximum of 13,276,500 Rand (c. £740k).

·     The CIP grant relates to the development of external road infrastructure, bulk electricity infrastructure and bulk water, including the design, engineering and associated preparatory activities required ahead of construction.

·     The company together with its consultants is currently undertaking the final engineering design work of the infrastructure to allow construction of the 15MW smelter to start timeously to meet the project's schedule.

·     Approval of the Environmental Impact Assessment and mining licence grant are expected in Q1 2015.

·     Construction of the 15MW smelter is scheduled to commence in mid-2015, with commissioning to begin in H1 2016 and full production in H2 2016.

·     The Company was assisted with the preparation and submission of the CIP application by Deloitte & Touche.

Critical Infrastructure Programme

The CIP is an investment incentive of the South African government to stimulate investment growth in line with the National Industrial Policy Framework (NIPF) and its Industrial Policy Action Plan (IPAP). The incentive programme aims to enhance investment by supporting critical infrastructure, thus lowering the business costs of investment. The CIP is a cost-sharing grant of a maximum of 30% of the project's total infrastructure development costs including design, engineering and associated preparatory activities and will be used specifically towards the development of external road infrastructure, bulk electricity infrastructure and bulk water.

Peter Cox, CEO of Ironveld commented: "Ironveld's 15MW DC furnace project has been approved as an Industrial Policy Project under the South African Governments Industrial Policy Framework and its Industrial Action Plan. The award of the CIP grant following the approval of the 12I tax incentive in 2014 are as a result of this approval.  The delivery of this highly attractive project remains on track with the Environmental Impact Assessment approval of the 15MW DC furnace and grant of our first mining licence expected in Q1 2015. Discussions continue with a number of potential offtake partners and we remain confident that the construction of the 15MW smelter will commence in mid-2015."

Ends

For further information, please contact:

Ironveld plc Peter Cox, Chief Executive	c/o Camarco 020 3757 4980
Shore Capital Stephane Auton / Toby Gibbs (corporate finance) Jerry Keen (corporate broking)	020 7408 4090
Camarco Billy Clegg/ Georgia Mann	020 3757 4980

Notes to Editors:

Ironveld (IRON.LN) is a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa.  Ironveld expects to mine its own VTM ore as feedstock for a 15MW smelter which will produce speciality iron products including high purity iron powder as well as Vanadium and titanium products.

The Definitive Feasibility Study published in April 2014 confirms the project's viability to deliver an exceptionally high grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. Vanadium and Titanium slag containing commercial grades of vanadium and titanium will also be produced and sold.

Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox, CEO and Nick Harrison as a Non-Executive Director.

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.

 

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