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Mpumalanga Business 2019/20 edition

  • Text
  • Africa
  • Transport
  • Water
  • Gas
  • Processing
  • Mining
  • Incentives
  • Sectors
  • Business
  • Investment
  • Parks
  • Forestry
  • Manufacturing
  • Highveld
  • Tourism
  • Sasol
  • Province
  • Economic
  • Industrial
  • Mpumalanga
The 2019/20 edition of Mpumalanga Business is the tenth issue of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special focus on the new life given to an established site at the Highveld Industrial Park and the Nkomazi Special Economic Zone (NSEZ). A useful article on what incentives are available to investors is included, and the Mpumalanga Economic Growth Agency (MEGA) gives investors some perspectives on what is available in the province. Mpumalanga has several investment and business opportunities in a wide range of sectors. Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media

OVERVIEW Mining

OVERVIEW Mining Sasol’s R5.6-billion Impumelelo Colliery is producing coal. SECTOR INSIGHT Mineworkers at Arnot mine have become majority shareholders. After Exxaro Coal Mpumalanga’s transfer of its 50% stake in the Arnot coal mine to mineworkers at no cost, the workers received a further 5% “free-carry” because of the specifications of Mining Charter III. The mine thus becomes South Africa’s first majority worker-owned mine. Wescoal is the other shareholder and operator of the mine. Wescoal’s profits doubled in 2018 to R202-million, proof that the coal miner’s acquisition and expansion strategy is paying off. The company, which runs three mines and four processing plants in Mpumalanga, has a resource base of about 300Mt. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon. Nkomati Anthracite has been revived after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%. Coal giant Exxaro, which runs five mines in the province, has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coalexporting region in the world. The opening in April 2019 of Sasol’s Impumelelo Colliery south-west of Secunda was the final phase of an investment in new coal mines to replace three coal mines that had reached the end of their lives. Sasol produces 40-million tons of coal annually. Impumelelo, which will produce 8.5-million tons per year, cost R5.6-billion to build. Anglo American has sold its thermal coal operations to Seriti, which is therefore the secondlargest provider of thermal coal to Eskom, supplying almost a quarter of the utility’s annual coal requirements. MPUMALANGA BUSINESS 2019/20 40

OVERVIEW State coal company AEMFC (African Exploration Mining & Finance Corporation) runs a colliery at Vlakfontein near Ogies and is planning to develop other projects. South32 has four collieries and three processing plants in the province. The company has 4 860 full-time employees and 4 400 contractors. ArmCoal is a black-owned coal company that arose out of a deal between Xstrata Coal SA and African Rainbow Minerals Limited (51%). ArmCoal was the vehicle used in the creation of the large open-cut thermal coal mine at Goedgevonden. Contribution to regional economy Mining’s contribution to provincial GDP is 25.9% of GDP and the sector employs 53 000 people. Most of the province’s mining companies are involved in training. The Colliery Training College (CTC) in Emalahleni is owned by a consortium of companies: Exxaro, Glencore, Kanga Coal, South32 and Izimbiwa Coal. Historically the centre was for mining only, but now it offers a broad range of artisan training, including auto electrician, fitting and turning and millwrights. CTC has been recognised as a leader in artisan training by the National Skills Authority. Coal, platinum, gold and nickel are the province’s major mineral resources and all are still in demand, even if coal and platinum have experienced roller-coaster price fluctuations. South Africa produces 75% of the world’s platinum, 80% of its manganese, 73% of its chrome and 45% of its vanadium. 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. Stillwater Sibanye is the new owner of the Burnstone gold mine near Balfour. Stonewall Resources runs the TGME Project, near the towns of Pilgrims Rest and Sabie. Stonewall has ambitious targets of going beyond production of 40 000 ounces from this and other historic mines in the area. ONLINE RESOURCES Colliery Training College: www.ctctraining.org Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources and Energy: www.dmr.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za Having taken full control of its Barberton mines, Pan African improved its BEE position (Shanduka Gold is a 23.8% shareholder) and set about increasing its annual gold output to 100 000 ounces. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals. The operation is on the southern part of the eastern limb of the Bushveld Igneous Complex, south-west of Burgersfort. Northam Platinum, which has assets on both limbs of the Bushveld Igneous Complex, has purchased the Everest mine from Aquarius Platinum. Everest is adjacent to Northam’s existing Booysendal mine. Jubilee Platinum has sold its Smelting and Refining business in Middelburg to Siyanda Resources for R110.5-million. Sylvania Platinum now has seven PGM recovery plants that extract chrome from tailings on both sides of the Bushveld Igneous Complex. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. Assmang, the joint venture between ARM Ferrous and the JSE-listed Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant where chrome alloys are made. The Manganese Metal Company (MMC) in Nelspruit is the largest producer of pure electrolytic manganese in the world. MMC is owned by Samancor (51%) and Bilston Investments owns the balance. 41 MPUMALANGA BUSINESS 2019/20

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