Sustainability website / Case Studies 2005 / Xstrata alloys / Project Lion: reducing the energy intensity of ferrochrome production

Project Lion: reducing the energy intensity of ferrochrome production

Xstrata Alloys' Project Lion involves the establishment of a new ferrochrome smelter complex near Steelpoort in Mpumalanga, South Africa. Phase one of the project comprises the construction of a smelting complex with annual capacity of 360,000 tonnes of ferrochrome production and is on track to commission in the second half of 2006. Phases two and three enable the capacity of the complex to be increased to over one million tonnes of annual ferrochrome production and will be initiated according to market conditions. Through the implementation of Xstrata's proprietary Premus technology, the Lion project will operate with significantly improved electrical energy efficiency, reducing the overall cost profile and energy intensity of Xstrata's ferrochrome business.

Safety, Health, Environment and Quality Manager Frank Cotton said: "Premus is a patented technology that we are already using at our Lydenburg plant. It is designed to reduce electrical energy consumption by using waste gas and heat, and provides high recoveries of metallic oxides, using low-cost reductants and energy sources such as anthracite and oxygen. The technology's improved efficiency also has substantial financial benefits over existing technologies."

Project Lion is located close to chrome ore reserves and adjacent to Xstrata Alloys' Vantech plant which was closed in 2004. It will further minimise cost and environmental impact by utilising existing resources and infrastructure from the Vantech site including water, offices and workshops. Former Vantech employees have been transferred to the construction of Project Lion and will also have the opportunity to secure a permanent position once Lion is operational.

The land surrounding Project Lion is used for settlement, agriculture, mining and minerals processing. In line with Xstrata's HSEC Standards a comprehensive environmental impact assessment (EIA) was completed before construction to minimise the environmental impact of the project, obtain regulatory approval, gain a thorough understanding of the project site and surrounding area and enhance project planning. The EIA covers geology and groundwater, surface water, air, soil and land capability, archaeology, sites of cultural significance, ecology and biodiversity, traffic, visual impact, noise and social investment. Project Lion was granted regulatory approval in November 2004.