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Mpumalanga Business 2017-18 edition

  • Text
  • Sustainable
  • Transformation
  • Manufacturing
  • Property
  • Trade
  • Corridor
  • Business
  • Africa
  • Investment
  • Mpumalanga
  • Province
  • Economic
  • Provincial
  • Sector
  • Mining
  • African
  • Mbombela
  • Sasol
  • Municipality
Mpumalanga Business 2017/18 is the eighth edition of this highly successful publication that has since its launch in 2008 established itself as the premier guide to business and investment in Mpumalanga Province. Supported and utilised by the Mpumalanga Economic Growth Agency (MEGA), Mpumalanga Business is unique as a business journal that focuses exclusively on Mpumalanga.

OVERVIEW Mining Mining

OVERVIEW Mining Mining companies are set to spend more than R12-billion on four coal projects. The Witbank coalfields are the most productive in Africa and Mpumalanga lies at the southern end of the eastern limb of the Bushveld Igneous Complex. Four of the biggest mining projects in Mpumalanga have been flagged as significant in terms of economic impact by research body TIPS: • Belfast coal, Exxaro, R3.8-billion • Tweedraai coal, Sasol Mining, R1.4-billion • Shondoni coal, Sasol Mining, R3-billion • Impumelelo coal replacement project, Sasol Mining, R4-billion. Coal, platinum, gold and nickel are the province’s major mineral resources and all of these minerals are still in demand, even if coal and platinum have experienced roller-coaster price fluctuations in recent months. South Africa no longer enjoys world dominance in gold production – both China and the US produce more ounces – but it does produce 75% SECTOR INSIGHT Seriti paid R2.3-billion for Anglo American’s thermal coal assets. • Exxaro is developing a new coal mine at Belfast. • Plans for a Mining and Metals Technology Park have been put on hold. • Wescoal has acquired Keaton Energy. of the world’s platinum, 80% of its manganese, 73% of its chrome and MPUMALANGA BUSINESS 2017/18 34

OVERVIEW 45% of its vanadium. Mpumalanga has significant resources of each of these minerals, and several others. Deposits of chromite, magnetite and vanadium are the basis of the ferro-alloy complex in Witbank-Middelburg (in the District Municipality of Nkangala) and Lydenburg (Mashishing). Nkomati Mine is South Africa’s only pure-nickel operation. The province’s coalfields are in the south and west of the province. Mining contributes 22% to provincial Gross Domestic Product and the relative contribution of the province’s sector to mining in South Africa has risen in recent years, from 18% in 1995 to 22% in 2016 (TIPS). Mining’s 103 000 jobs (in 2014) put the sector third in the province. Only manufacturing and construction had slightly higher numbers. In terms of new mining legislation, mining licences now include a provision whereby some of the resources mined must be made available to local manufacturers. The idea behind the Mineral and Petroleum Resources Development Act is to boost the minerals beneficiation sector, which, it is believed, will increase employment levels and stimulate economic growth. Uncertainty in the steel sector has meant that the plans of the Mpumalanga provincial government to develop a Mining and Metals Technology Park have been put on hold. Coal Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coal exporting region in the world. The coalfields of the province feed nearby power stations. The town of eMalahleni (Witbank), in Nkangala District Municipality, is at the centre of the coal industry. In 2015, nearly 30% of national power utility Eskom’s coal (33.3-million tons) was supplied by Exxaro. Exxaro’s purchase of Total Coal South Africa (TCSA) has significantly increased the diversified miner’s coal-mining capacity, and took to six the number of mines the company has in Mpumalanga. Exxaro is spending R3.8-billion on a new coal mine at Belfast. Engineering companies Arup and DRA have signed contracts, and SRK Consulting has been hired to build a railway siding. The mine will produce 2.2-million tons for export every year and 500 kilo-tons of power station coal. Anglo American has announced it intends narrowing its focus to diamonds, platinum and copper. The first big move came in April 2017 with the sale of Anglo’s thermal coal operations to Seriti, a black-owned company led by Mike Teke, the outgoing president of the Chamber of Mines. Seriti comprises Masimong Group Holdings (Teke’s company), Community Investment Holdings Projects, Zungu Investments Company and Thebe Investment Corporation. Seriti paid 35 MPUMALANGA BUSINESS 2017/18

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