Appointed Mogale Alloys distributor for foundry and related industries products.
Recently established Pentagon Resources has been contracted to sell and distribute foundry and related industries products emanating from the Mogale Alloys processing plant in Krugersdorp, Gauteng.
“This is a major step forward in the company’s relatively short history,” said Joshua Van Flymen, founder of Pentagon Resources.
“We only started operating in November 2014. The company was established to service the foundry industry in the main but is not limited to this industry. It is our ambition to supply the industry with quality products and hence sourcing these products is all important,” continued van Flymen.
“Foundry related products are generally seen as a byproduct of the focused area of supply, which are the stainless steel and platinum producers. Chromite sands, ferrochrome alloys and silicon manganese products are almost an afterthought but are number one in many foundries production process.”
“It is therefore very difficult to source the foundry related product despite the abundance of the raw materials in South Africa.”
“South Africa is one of the leading manufacturers of chromite globally and a major supplier of ferrochrome. The main area of application for chromite ore is in metallurgical processes, after conversion into ferrochrome. Recently, the biggest user of chromite ore has been China, importing large quantities from South Africa, Pakistan, and other countries. The concentrate is used to make ferrochromium, which is in turn used to make stainless steel and some other alloys.”
“According to reports approximately 90% of all chromite ore is used in the production of stainless steel. The outlook for the stainless steel industry is heavily dependent on both chromite ore and nickel. This amplifies the necessity for backward integration in the stainless steel value chain, with leading stainless steel producers directly involved in chromite ore production.”
“The steady growth in global chromite ores and concentrates production was due to a rise in demand from the ferrochrome and stainless steel markets, with China accounting for 36% and 52% of global ferrochrome and stainless steel production respectively.”
“Analysts estimate global chromite ores and concentrates production at 29Mt in 2014, up by 0.7% from 2013. Global reserves as of January 2015 were 484.6 metric tons (Mt), with three countries accounting for 95% of the total: Kazakhstan for 230Mt, followed by South Africa (200Mt) and India (54Mt). The remainder is found in the US, Turkey, Finland and Brazil.”
“A distinction should be drawn between the two types of ferrochrome produced. Ferrochrome made from South African chrome concentrate is called charge chrome, meaning that its benefits from having a large proportion of ‘free’ high purity iron units and a high silicon content. These qualities are not found in the second type of ferrochrome, high-carbon ferrochrome, which is the common form produced from chrome concentrate elsewhere in the world.”
“Mogale Alloys, which is part of the internationally diversified listed company Afarak, completed the installation of a ferroalloy refining and granulation plant in December last year. The total cost of the investment was approximately R185.1 million and the monthly production capacity of the plant is expected to be 1 500 tons of medium carbon ferrochrome. The chromite Mogale Alloys processes is supplied by Stellite and Mecklenburg chrome mine, which are also part of the Group.”
“Mogale has been in operation since 1983 and is considered to be a centre of excellence because of its direct current (DC) furnace technology. DC furnace technology is approximately 20-30% more cost efficient than traditional furnace technology.”
“Amongst others Mogale produces and sells high, and medium carbon ferrochrome and silicon manganese. Ferrochrome, also known as charge chrome, is an essential ingredient in producing stainless and specialty steels. Ferrochrome increases mechanical properties and corrosion resistance. These products are sold by Pentagon Resources into the foundry industry.”
“We will concentrate on supplying the foundries with the high carbon alloys including plasma and medium charge (MC2) which is an IC3 substitute which previously was produced in South Africa. These products are very important for the high chrome foundries because of the strength properties.”
“We have set up a warehouse in Wadeville, which has easy access to most of the foundries in the Gauteng area, but we can also supply the foundries in the rest of the country. Our services include drying and bagging in more manageable quantities. We now have four vehicles in our fleet so we could virtually do same day delivery.”
“We have also been able to source other products that we will shortly be supplying to the foundry industry. These include chromite sands and the graphite products, both natural and synthetic.”
“To increase our offerings and services to the foundry industry we will be sourcing other products including hardware.”
For further details contact Pentagon Resources on TEL: 011 028 4225