ANDALUSITE RESOURCES - The International Resource Journal

ANDALUSITE RESOURCES
www.andalusiteresources.com

2 MINING Andalusite Resources
Discovers South A
Andalusite
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NOVEMBER 2010 The International Resource Journal
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MINING
Resources
frica’s hidden gem

4 MINING Andalusite Resources
South Africa has the world’s largest reserves
of andaluliste and the Maroeloesfontein
Andalusite Deposit in the Thabazimbi region
is rife with this rich mineral. This new
mining company emerged with the goals of
further exploring this prolific mineral.

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6 MINING Andalusite Resources
Andalusite Resources has been at the forefront
of andalusite mining in South Africa since 2002.
The early days
In March 2002, Andalusite Resources started to
build its greenfield site and came to commercial
production in the second quarter of 2003. At the
company’s inception, there was only one other andalusite
supplier in the world, so it honed in on a
plentiful business opportunity in the mining sector.
Colin Bain, Director of Andalusite Resources
says, “We were presented with an opportunity
to acquire a decent mining reserve. It was absolutely
brand new to us and we saw a gap [for
andalusite] in the market.”
Initially, Bain says, the company struggled
because as in any new business it takes some
time to gain trust and clientele within the stringent
marketplace. “It takes a long time to get a
product which is used in such critical applications.
To get worldwide trust it takes about two
years, so during that time we were working on
the product,” he says.
“We stuck with it and we now have the right
process and the right equipment.”
Though the company may have had a strenu-

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ous start, the last three years have shown marginal
growth with profits and potential for much
more. “It has been a journey for us. A mine
doesn’t start on day one and is profitable. It
wasn’t necessarily an easy entry,” says Bain.
The company’s hard-earned success from
its tentative beginnings was due to studying
how to work with the nuances of andalusite and
consistently growing as they gained knowledge
and expertise. “We had to make some significant
changes to the mining equipment because
there is quite a difference with hard and soft
rock,” Bain explains.
“Once we understood the impact of those
dynamics, we were able to ramp up production
and get better quality. The rest took some time
to understand.”
The mining process in the andalusite plant
also took patience to absorb. “In terms of mining
processing plants, it is not overly complicated,
but the techniques of washing, scrubbing, processing,
and crushing have certain subtleties
to it when it comes to andalusite,” says Bain.
“Only when working with the mineral do you
learn these subtleties and techniques. Anyone in
this business will go through a learning process

8 MINING Andalusite Resources
whether they like it or not. It is not as simple as it
may first appear when you look at the operation.”
A year ago Andalusite Resources had the capacity
to produce 50,000 tonnes per year with
operations at 4,000 tonnes per month. Now
it has ramped up to 6,000 tonnes per month
with goals of producing 6,500 per month and
80,000 annually.
The Andalusite market
Bain says that the global market for andalusite
is an estimated 400,000 tonnes worldwide. The
industry is a growing one that he claims will see
significant demand in certain countries.
“Historically, China, India and Russia have
not used andalusite in any significant quantities,
but now they have been introduced to the usage
and the demand has grown significantly in those
regions,” he says.
“Those markets are large, industrial countries.
We do not see that trend changing either
for the foreseeable future.”
The crystals found in the Maroeloesfontein
deposit are smaller than other crystals found in
the East of South Africa. The deposit is in a flat
area which helps with the opencast mining pro-

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cess, which is such that the opencast pits are
carried out by an excavator.
Competitiveness
Andalusite Resources has been making strides
and has grown into a trusted producer of andalusite
in just a few short years. The company
has excellent access to quality raw materials.
“There is not a huge amount of additional reserves
available in South Africa for new players to
come in and establish themselves, so our availability
of reserves is a competitive edge we have,
certainly within South Africa,” Bain says.
The company focuses on being a
low cost provider and expects to
establish a reserve of coarser material
and complete current exploration
in the next twelve months. “We’ve
secured prospecting rights in other
parts of South Africa where we
expect to establish a reserve of coarser
material,” says Bain. “If that proves to
be successful, we will set up a smaller
operation in another part of the
country to mine coarse materials. We
are always looking at opportunities to
beneficiate the andalusite and milling
our own materials.”
Andalusite Resources has matured into a
reliable producer of andalusite with a focus on
quality. Bain says, “We are forward-thinking and
we have established reserves. We expect to be
here for the foreseeable future. We are flexible
in terms of our marketing strategies while being
respectful of market conditions.”
Though Andalusite Resources may have
started small, it has adapted and developed
steadily. The company has used its beginnings as
a valuable learning process to become a major
producer of andalusite in the South African landscape.
It is determined to stay a top producer in
the marketplace and with its hard work and commitment
to andalusite, the company’s determination
has and will continue to pay off.
www.andalusiteresources.com

AS SEEN IN THE NOVEMBER 2010 ISSUE
OF THE INTERNATIONAL RESOURCE JOURNAL