Nesstra - Mining & Minerals Report

Chrome

Zimbabwe Material

Supplier – Unitech Logistics

Deal Number TOTAL ORDER MT Stock Paid for MT STOCK W/H Order Date Payment Date Lab Test Date %
CU001 500 250 133 20-Aug-19 05-Sep-19 03-Oct-19 42%
05-Nov-19

500MT order Chrome MT Cost/MT Sale offer /MT

1st Order 05 September 2019
1st Delivery 23 September 2019 $ 100,00 $ 125,00
Current Stock MT 133 $ 13 300,00 $ 16 625,00
Balance Remaining 277 $ 27 700,00 $ 34 625,00
Lab test cost R4,904.75 $ 338,26
Total Cost $ 41 338.26 $ 51 250,00
Total GP $ 9 911.74
GP % 20%
Supplier - Unitech Logistics - USD 25 000 paid
Customer - MKI

Current Status
- 133 MT were received – currently awaiting documents for a further 170MT from Unitech.
MMCZ Documentation ready, release of Documents from ZIMRE (Customs) currently delayed
due to payment challenges between ZDI and Reserve bank (Channel Yunis used for export
permit on Chrome). Advised it will be resolved this week.
- Verified 290 MT on the Ground ready for loading once documents are released.

CHALLENGES
- Lack of Capacity and transparency from Unitech Logistics. Failed to perform to promise as he did
not have the required Machinery and funds to complete the order. –
Proposed solutions:
1. Matter to be resolved by collecting 290 MT in Chrome – 120MT chrome documentation will
have to be done by Nesstra – at this point the cash value paid to Unitech will have been
recouped by Nesstra – Unitech has agreed and material/ stock of 290 MT verified.
2. 2nd supplier to supply Chrome (500MT) – will finance the initial 500MT to supply FOB
Pretoria – status of this they are currently processing their own paperwork – expected in 2
weeks should Corona Virus not affect interested stakeholders
3. Supplying Machinery and Fuel – ensuring capacity for the mining contractor
- Paperwork for Export delays and acquisition thereof
4. Paying for Chrome and following process as required by MMCZ so that documents are
processed accordingly
5. Logistics – MCA yard with weighbridge and security proposed – Costing to be advised for
Power (Electricity) and Security – No rental for initial 6 months whle looking at taking over
wash plant and mine at MCA mine.
6. Having presence on the ground to follow up/ oversee activities on the ground relating to
paperwork, loading and stock pile verification etc.
South African Material

1. Amcock Mining – SA Chrome Mine and Ferrochrome – Smelter Project – Negotiating

supply

- Contact Person – Paul Thomson – +27 83 760 2892

- Mine in Zeerhurst – Assays tested 44 – 45 % Chrome – mine sells at 38 – 40% basis to avoid
contractual issues should material test below. Below is assay test result from the Zeerust mine

- Distance from Mine to smelter is +- 250km.

- Transporter to advise rates via Paul – Agility division of Super Group (MD – Glenis Jordan)
- Smelter has a slot that can process 12 000 to 14 000 MT – which will produce about 5 000 to
6000 MT of Ferrochrome at a rate of about 2.1 on average
- Paul will test 200kg sample at the smelter next week to determine more accurate rate and also
cost from smelter for smelting chrome to produce Ferrochrome
Below is Typical – Ferrochrome output from Smelter
- CURRENT STATUS – Mine to re-offer this week with new pricing.

CUSTOMERS/BUYER

Qty
Order Qty
BUYER Order Type Supplie Spec Current Status
Date Required/M
d
Colony Mineral
 March 1 year 2k MT FOB Ferro awaiting FCO
Resources Limited - 0
2020 Contract Durban Chrome from NSA
Zambia
38% awaiting FCO
       Min 10k MT  
Lumpy from NSA
awaiting FCO
       Min 2k MT   42% Conc
from NSA
awaiting FCO
       Min 2k MT   46 % Conc
from NSA

2. Colony Mineral Resources Limited’s

Local Chrome and Zimbabwe for Export
Local Smelter Steelport
- Director Isaac Muchengwa (MD) +260 96 799 0991 isaac.muchengwa@gmail.com
Zambia.
- Requirements for Chrome – 20 000MT for export to China and 10 000MT for Steelport
smelter
o Colony Mineral Resources Limited and Partners have secured a Slot at smelters in
Limpopo Province - Steelport where the Chrome they purchase will be smelted
o They require 42% minimum Chrome – Lumpy and Concentrate – and a minimum of
10 000MT per month
 - They require a Full Corporate Offer with Specs of Chrome we can supply and a
Guarantee of min 10 000MT per month
- Payment Terms – LC that Nesstra can draw against every month on the quantity’s
delivered.

3. Export – Mass Korea International

Order Qty Qty Current

BUYER Order Type Spec
Date Required/M Supplied Status
MK
1 year Ferro awaiting FCO
International   2k - 20k MT 0
Contract Chrome from NSA
- South Korea
awaiting FCO
          38% Lumpy
from NSA
awaiting FCO
          42% Conc
from NSA
awaiting FCO
          46 % Conc
from NSA

- Meeting Report – MK International. (Mass Korean International) – 4 Feb 2020

- Meeting with the Chairman – Dr. Hae-Jung Jung mkhq@mkintl.co.kr +82 2 3273 1501
- www.mkintl.co.kr
- M.K International Inc. is an international company, active in 5 scopes of business: Consulting
Engineers, Industrial Engineering, International Financing, International Trading, and
Manufacturing Plant.
- Operate in 51 countries, done business in 23 countries in Africa. Interested in Minerals we can
provide
- supply PE resin to Sasol, can supply PP and other grades that will make it competitive
- Main reason for meeting initially was Chrome

CHROME
- Buy minimum 2000 – 3000MT of Chrome up to 20 000 per month
- Most important is reliability and consistency – Minimum 45% Cr for concentrate
- Preference is concentrate
- 1 year minimum contact to supply

CURRENT STATUS
- Asked to reoffer Chrome CFR Tainjin China and Longkou Port in China. Confirming Shipping costs
and awaiting new offer from Mine as they have increased pricing as off Today due to ZAR USD
exchange rate.
- Spoke with Dr Jung – Chairman of MKI – he advised that Corona Virus outbreak had slowed
down their businesses and would take longer to revert due to the fact that their smelters were
not running at full capacity , only 30 to 40%. He anticipated that one things return to some form
of normalcy they will resume. In the meantime they are awaiting our quote. Expect to re-quote
this week