OVERVIEW Agriculture A
OVERVIEW Agriculture A major starch business is changing hands. SECTOR INSIGHT An alternative market opened in double-quick time in Midrand. Tongaat Hulett, best known as a sugar producer, is selling its starch business (with three milling plants in southern Gauteng) to the KLL Group, a wholly-owned subsidiary of Barloworld Logistics Africa. The Meyerton plant is pictured. The R5.3-billion transaction was in doubt because of concerns about the value of the business expressed by the buyer in the context of Covid-19 but the Competition Tribunal in July 2020 approved the deal. The temporary closure of the Tshwane Market due to the pandemic brought a quick reaction from RSA Group and Freshling. Within 48 hours a new facility in Midrand was up and running and on the first day, more than 340 pallets of fresh produce were available for sale. The Fresh Produce Market in Johannesburg is South Africa’s biggest market. The region’s other metropolitan areas, Tshwane and Ekurhuleni, also have busy markets. The Springs Fresh Produce Market accounts for 3% of South African market share. Gauteng’s agricultural sector is concentrated on producing vegetables. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south). The province is home to some of South Africa’s biggest agricultural companies, including AFGRI. Africa’s largest feedlot for cattle is located in Heidelberg: Karan Beef’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day and the associated abattoir in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The Kanhym Agrimill in Vereeniging is one of three in the ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za AgriSA: www.agrisa.co.za Red Meat Producers’ Organisation: www.rpo.co.za South African Poultry Association: www.sapoultry.co.za company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country. There are many poultry farm and production facilities in Gauteng. Companies include Astral Foods, RCL Foods and Daybreak Farms. A R400-million agro-processing plant was launched in 2019 in the Gauteng Industrial Development Zone (GIDZ). The GIDZ is located at OR Tambo International Airport and is intended to encourage exports of high-value goods. The Provincial Government of Gauteng has set up Action Labs to focus on agriculture and agro-processing with a focus on land tenure issues and improving food security. If food producers can be linked to the value chain then township economies can benefit. In almost every aspect of the spatial planning being carried out by the Gauteng Provincial Government, agriculture and agro-processing are key components, either of Special Economic Zones (SEZ), industrial parks or agri-parks. Plans for the Western Corridor, for example, include an agro-processing park and logistics hub. ■ GAUTENG BUSINESS 2020/21 26
OVERVIEW Mining AngloGold Ashanti has sold its last South African asset. The sale in 2020 by AngloGold Ashanti of its Mponeng mine and Mine Waste Solutions to Harmony Gold for 0-million (about R4.4-billion) marks the end of an era. Although the company’s headquarters will continue to be in Johannesburg and it will be listed on the JSE, its mines are in Ghana, the Americas and Australia. AngloGold Ashanti was the successor to the mining company formed by Ernest Oppenheimer in 1917. Harmony Gold’s acquisition strategy, including the purchase from AngloGold of Moab Khotsong mine in 2017, will result in it being the country’s biggest gold producer. With 350 000 new ounces coming from Mponeng, it could produce an annual total of 1.7-million ounces. Cullinan diamond mine produced 30% more in the first half of 2019 than it did the year before. Run-of-mine production increased to 785 444ct. The company is engaged in an expansion programme called the C-Cut Phase 1 project. Cullinan is famous for its rare blue diamonds. The University of the Witwatersrand started life as the South African School of Mines. The School of Mining Engineering at Wits is now one of many at the university, but it is the highest ranked in terms of the QS World University Rankings. Gauteng is home to most of the research and training bodies associated with mining. Sibanye-Stillwater is one of many companies supporting research in the province: the Wits Mining Institute’s Digital Mining Laboratory (Digimine) is the focus of its funding. AECI, the explosives and chemicals company, sponsors the Virtual Reality Mine Design Centre at the University of Pretoria. The Mandela Mining Precinct is a joint venture between three government departments and the Minerals Council South Africa which aims to develop research into mining, showcase the country’s manufacturing abilities and to continue to create jobs and wealth as ore bodies are depleted. Mintek is an autonomous body based in Randburg which receives about 30% of its budget from the Department of Mineral Resources. The balance comes from joint ventures with private-sector partners, ONLINE RESOURCES Council for Geoscience: www.geoscience.org.za Minerals Council South Africa: www.mineralscouncil.org.za Mintek: www.mintek.co.za National Department of Mineral Resources: www.dmr.gov.za SECTOR INSIGHT Harmony Gold’s purchase of Mponeng mine boosts its overall volumes. or is earned in research and development income, the sale of services or products and from technology licensing agreements. Pretoria University has a Department of Mining Engineering, the University of South Africa offers three national diplomas in mine-related fields, the University of Johannesburg has mine-surveying courses and the Vaal and Tshwane universities of technology have engineering faculties. The national government’s Phakisa programme is to be applied to mining. Intended to fast-track solutions to development problems, an Operation Mining Phakisa Lab has been set up to create concrete plans. Similarly, the Provincial Government of Gauteng has initiated Action Labs in the mining sector. ■ 27 GAUTENG BUSINESS 2020/21
