South Africa - Kalagadi Industrial Beneficiation Project

Project Summary

Approval Date 18 May 2011
Signature Date 07 Jan 2014
Sovereign / Non-Sovereign Non Sovereign
Sector Industry, Minning & Quarrying
DAC Sector Code 32110
Environmental Category 1
Commitment U.A 104,636,079.75
Status Implementation

Project General Description

The Kalagadi Industrial and beneficiation project is an integrated project encompassing mining, processing and smelting of manganese ore. Mining/processing operations located in the Northern Cape Province of South Africa, and the smelter operations in the Eastern Cape Province. The project proposes to establish a new manganese mine located on three contiguous sites: Umtu (2,000 hectares), Olivepan and Gama (both 4,500 hectares), which represent a total area of approximately 6,500 hectares (ha) in the province of North Cape, South Africa. The settlement area is bounded by the Kalahari manganese mine (KMF), the largest manganese deposit in the world. The mine would be designed to produce up to 3 million tonnes of ore per year and produce up to 1.5 million tonnes per year of finished products in normal operation. The mine could also produce other materials based on market demand. Alternative materials in this case refer to ferromanganese (HCFeMn), whether it is the primary product or its substitute, silicomanganese (SiMn). It is expected that the manganese produced by the project will be exported.

Project Objectives

The main objective of this project is to produce steel-manganese alloys (alloys are the mixture of two types of metals, here iron and manganese). Project will contribute to the revival of mining activities in the Northern Cape and provide significant economic benefits to both provinces through long-term employment and wealth creation opportunities during the life of the project.


The main beneficiaries of the project are the South African government and the households in its area of influence. The project will create in excess of 1,000 direct jobs and 19,767 indirect jobs in both provinces. Household income is estimated to increase by ZAR 767m in Northern Cape and R 865m in Eastern Cape. Across the economy, household income will increase by ZAR 3.2bn, and Government tax revenue boosted by ZAR 6.24bn.

Participating Organization

African Development Bank


IATI identifier 46002-P-ZA-B00-001
Last Update 14 Jun 2021


Contact Details


Geographic Location

Country South Africa
Coordinates Location Name
-27.2 22.8771 Umtu
-27.2182 22.8728 Olive Pan
-27.2379 22.8699 Gama
-33.7957 25.6713 Coega