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FOSKOR
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Africa Outlook profiles South African phosphates firm Foskor, one of the world’s largest producers of phosphate and phosphoric acid. Writer Ian Armitage Project manager Debbie Clark
hosphates firm Foskor needs little introduction. The South African phosphate mining and processing group, whose majority shareholder is the Industrial Development Corporation, famously gave its name to foskorite and it is the only vertically integrated phosphate producer in the country. The Midrand-headquartered company also participates in the beneficiation of phosphate rock into phosphoric acid and phosphatebased granular fertilisers, which are sold around the world. It was set up by the IDC in a bid to make South Africa independent from phosphate imports and operates from two main locations, the Mining Division in Phalaborwa in the Northern Province (Limpopo), and the Acid Division in Richards Bay, KwaZulu-Natal.
Foskor is a proudly South African producer of phosphates and phosphoric acid with international exposure”
“Foskor is a proudly South African producer of phosphates and phosphoric acid with international exposure,” the company’s website says. “Foskor unlocks shareholder value through the profitable, responsible and sustainable beneficiation of phosphate rock into either phosphoric acid or phosphatebased granular fertilisers sold globally. “Foskor is the only vertically integrated phosphate producer in South Africa,” it adds. “From
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f o s k o r
Stefanutti Stocks Multidisciplinary Stefanutti Stocks is a leading South African construction group with the capacity to deliver a range of projects of any scale to a multitude of clients in diverse markets It has been successful in strategically positioning itself across many industries with its portfolio of both conventional and niche skills The group boasts a wealth of experience and expertise in the design and construction of mining infrastructure as well as the provision of professional services in the fields of open cast contract mining, bulk material handling and waste residue disposal and recovery facilities Stefanutti Stocks also offers mining clients geotechnical and piling, infrastructure earthworks, water treatment plants, road rehabilitation and surfacing, a broad spectrum of civil construction, mechanical & piping and electrical & instrumentation supply, installation and commissioning
phosphate-bearing ores, the operations in Phalaborwa mine and process phosphate rock concentrate, which is crucial for stimulating and raising crop yields. The Richards Bay plant manufactures sulphuric acid, phosphoric acid and phosphate-based granular fertilisers (MAP and DAP) by using phosphate rock as a raw material. About 84 percent of Phalaborwa’s phosphate rock concentrate is railed to Richards Bay and the rest is sold externally. The Acid Division exports phosphoric acid to India, Japan, Bangladesh, the Netherlands, Mexico and Dubai. Phosphoric acid has agricultural, industrial, medical and retail applications. Products made from phosphoric acid include catalysts, rust proofing materials, chemical reagents, latex, dental cements, tooth whiteners, toothpaste, disinfectants, food supplements, carbonated beverages, waxes, polishes and animal feeds, among others.” Foskor’s two mines at Phalaborwa, the North and South Pyroxenite Pits, can produce 2.9 million tons of phosphate rock at full capacity.
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Stefanutti Stocks Contract Mining was awarded the Foskor North Pit Expansion project where it excavates, loads and hauls apatite-bearing ore to the Foskor crushers; and the associated overburden to waste rock dumps. Stefanutti Stocks Civils and Stefanutti Stocks Mechanical are undertaking the construction of the mine’s phosphate flotation plant
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From phosphate-bearing ores, the operations in Phalaborwa mine and process phosphate rock concentrate, which is crucial for stimulating and raising crop yields”
f o s k o r
Quick facts Foskor was founded by the Industrial Development Corporation in 1951 to produce phosphates for South Africa’s agricultural sector. The Group’s core activities focus on the mining and beneficiation of phosphate rock and the subsequent production of phosphoric acid and phosphatebased fertilisers. Foskor is the only vertically integrated producer of phosphate rock, phosphoric acid and granular fertilizer in South Africa. Foskor is the second South African company to be credited with a DEKRA Gold Certificate. DEKRA is an international safety and quality ratings agency in the fields of technology, the environment, training, monitoring and mobility. Foskor is the leading supplier of granular fertilisers – diammonium phosphate (DAP) and monoammonium phosphate (MAP) – core ingredients in final fertiliser products comprising nitrogen, phosphates and potassium, also known as NPKs in South Africa. Foskor is well-positioned to optimise the growth opportunities offered by a definitive shift of economic power to Asia and the Pacific region.
ensure stable sales volumes and protect cash flow during economic downturns. The Group remains committed to implementing financial and managerial discipline while raising output and containing input costs. Foskor strengthens its brand by implementing productivity enhancing growth strategies which address underlying structural problems and narrows the skills gap.
Foskor is implementing plans to grow its distribution networks through its market diversification strategy and to focus on product diversification through both Source: Foskor’s Integrated annual acquisitive and organic growth to balance the company’s portfolio, report, 31 March 2012
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Of the total rock output, approximately 80 percent is railed 800 kilometres to the beneficiation plant at Richards Bay. The Acid Division has capacity to produce 690,000 tons of phosphoric acid, 2.2 million tons of sulphuric acid and 350,000 tons of granular fertilisers. The remainder of the phosphate rock is sold in the local and export markets, while the bulk of the phosphoric acid produced is exported. According to Alfred Pitse, CEO and President, the firm is focused on driving “operational excellence”. “To achieve operational excellence, cost management To achieve will be implemented alongside efficiency operational excellence, improvements while cost management will be optimising the existing implemented alongside capacities. The future growth of the company efficiency improvements” is dependent on getting the existing operations right,” he says in its 2012 financial report. In November 2012, KZN’s Zululand Observer reported that the chemicals group planned to build a “huge new rock storage facility” and install three bulk chemical storage tanks as part of a R200 million expansion of its Richards Bay plant. According to the report, the new facilities would “allow” Foskor to “broaden its phosphate product offerings in order to tap new markets”. The expansion would see the building of a 12,000m² phosphate rock storage plant as well as a 700m³ bulk storage tank for defluorinated phosphoric and three smaller tanks for the storage of merchant grade phosphoric acid. It would produce 1,100m³ per annum of lowerfluoride phosphates for use in animal feed, the report added, quoting SRK Consulting Senior Environmental Scientist, Wouter Jordaan, who is overseeing the permitting of the new facilities, including a new Atmospheric Emissions Licence (AEL). The project is expected to create 134 permanent jobs and 75 temporary jobs during construction and is expected to generate revenue of R260 million for the company once operational, Jordaan said. To learn more visit www.foskor.co.za.
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