5 years ago

Limpopo Business 2017-18 edition

  • Text
  • Development
  • Leda
  • Nedbank
  • Mutual
  • Exxaro
  • Beers
  • Investment
  • Business
  • Limpopo
  • Polokwane
  • Economic
  • Provincial
  • Province
  • Mining
  • Municipality
  • Sector
  • Tourism
  • Venetia
  • Edition
A unique guide to business and investment in Limpopo. Limpopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo. This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors. To complement the extensive distribution of the print edition of the magazine, the publication is also available online at

OVERVIEW Mining Special

OVERVIEW Mining Special economic zones open up possibilities for investors in processing. IMAGE COURTESY OF DE BEERS VENETIA MINE Diamonds in the north, platinum and chrome in the west and east and coal just about everywhere – Limpopo Province has extraordinary mineral wealth. The mining sector routinely contributes up to 30% of regional GDP but this has fallen back somewhat with reduced platinum operations in response to a weak global market for the commodity. Although there are efforts under way to try to diversify the Limpopo economy to reduce the dependence on the mineral sector, there is a parallel effort to use the underground riches of the province to stimulate the growth of the manufacturing sector. A series of measures have been developed by the Limpopo Economic Development Agency (LEDA) to create the circumstances where processing plants and products can add value to the minerals. A large part of strategy centres around Special Economic Zones (SEZs), a nationally certified geographic area where special concessions and tax breaks apply, intended to encourage inward investment. The Provincial Government of Limpopo wants to see the supply chain of mines heavily weighted in favour of local businesses and particularly small, medium and micro-enterprises (SMMEs). The government has committed to upgrading informal settlements around mining towns. Major investments in Limpopo include an ongoing project by De Beers in Musina to convert its Venetia mine from an open-pit mine to SECTOR INSIGHT Carbon-neutral mining is the goal for researchers at De Beers’ Venetia mine. • Impala’s refinery is to be powered by fuel cells. • Exxaro has launched its vision for mining sustainably. • Ivanplats’ new Platreef mine may become the biggest PGM mine in the world. a vertical shaft mine and a multibillion new platinum mine project led by a Canadian firm (in partnership with Japanese companies). Silicon Smelters (the largest charcoal producer in Africa) and Anglo Platinum’s smelting facility, LIMPOPO BUSINESS 2017/18 46

OVERVIEW one of three run by the company, are both located in Polokwane. Northam Platinum’s metallurgical complex at its Zondereinde mine processes Merensky and UG2 ores separately. Platinum With a depressed platinum price, platinum miners are hoping that demand from the fuel cell industry will replace the decline in demand for catalytic converters. Impala Platinum (Implats) has an interest in two big operations on the eastern limb of the Bushveld Igneous Complex. Marula (in which Implats is a 73% shareholder) is in Limpopo province, about 50km north of Burgersfort. South of the same town, in Mpumalanga, Implats (49%) is in a joint venture with African Rainbow Minerals (ARM) at the Two Rivers mine. The mine has a concentrator plant and has a life-of-mine offtake agreement with Impala Refining Services. Impala announced in early 2017 that it intends to take the refinery (in Springs) off the Eskom grid, and power the refinery using fuel cell technology. Power will come from an 8MW Doosan Fuel Cell. Even though the Twickenham mine of Anglo American Platinum (Amplats) has been put on care and maintenance, lots of work is going on there. Amplats is testing trackless mechanised mining in that hope that automation will bring down costs sufficiently to make it economical to mine again. Despite uncertainty on the global market, Northam Platinum has continued to buy assets. In 2015 it bought Everest South from Aquarius, a move that will allow it to consolidate operations with its adjacent property, Booysendal South. Northam, which also has assets in the North West province, aims to produce 850 000oz of PMGs from 2022. A court ruling in February 2017 has opened the way for Ivanhoe to build its Platreef Project on the northern limb of the Bushveld Igneous Complex. Local communities objected to the proposed multi-billion project because it was said the mine would cause ancestral graves to be moved. R70-million has been commited to the first phase. In July, Ivanhoe released a feasibility study that was positive about prospects for mining for platinum group elements, nickel, copper and gold. Ivanplats, the subsidiary of the Canadian company, will run the mine in the Waterberg District Municipality near Mokopane south-west of Polokwane. Ivanhoe has a 64% stake in Ivanplats with 10% owned by a group of Japanese companies including ITOCHU Corporation and Japan Gas Corporation. If the mine achieves the projected production rate of 12 Mtpa with 1.2-million ounces of PGM, it will rank as the biggest mine in the world. Engineering companies engaged in the project include FLSmidth (winding equipment), Aveng (shaft one) and Murray & Roberts (shaft two). 47 LIMPOPO BUSINESS 2017/18

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