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Mpumalanga Business 2020-21 edition

  • Text
  • Invest
  • Business
  • Investment
  • Economy
  • Africa
  • Africa
  • Exxaro
  • Sasol
  • Sappi
  • Economic
  • Programme
  • Manufacturing
  • Province
  • Provincial
  • Sector
  • African
  • Tourism
  • Municipality
  • Mpumalanga
The 2020/21 edition of Mpumalanga Business is the 11th issue of this essential publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. Updated overviews of each of the key economic sectors of the province are included, with references to the latest investments by companies across multiple sectors. These include Sappi, Sasol and Sonae Arauco, which is expanding its White River factory. Afrimat is considering investment in the mining sector, while Exxaro Resources, South32 and Pan African Resources are among the mining companies spending on extending the life of existing mines. A useful article on what incentives are available to investors from various departments and agencies is provided. Mpumalanga has several investment and business opportunities in a wide range of sectors.

OVERVIEW Oil and gas Gas

OVERVIEW Oil and gas Gas finds off the coast of Mozambique could be significant. Sector Insight Gas-to-power forms part of a national masterplan. Sasol at night. Image: Sasol Massive natural gas finds in Mozambique’s Rovuma Basin could have a big impact on Mpumalanga’s economy. The province is already equipped with energy and fuel infrastructure and expertise. The Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the broader programme of the National Department of Mineral Resources and Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. The new gas from Mozambique could be shipped as liquefied natural gas (LNG) to Maputo and continue from there to the Sasol plant at Secunda via the existing Rompco pipeline. The promoters of the Nkomazi Special Economic Zone believe that the fact that the pipeline passes through the SEZ is a big selling point. An alternative would be for the LNG to be shipped to Richards Bay before being piped north. Many of the big mining and manufacturing concerns in Mpumalanga have long-term contracts for the supply of gas with big gas companies. Afrox and Air Liquide are two of the biggest, with the latter having 3 500 national customers, which include Sappi and Sasol. International chemicals and energy company Sasol has several large plants in Mpumalanga and plays a major role in the economy of Mpumalanga. Sasol Gas is one of the four Sasol operations at Secunda, Online Resources Independent Power Producers Programme: Petroleum Agency SA: PetroSA: supplying natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal. Sasol and the provincial government have commissioned a technical feasibility study for a Petrochemical Technology Park to be located in the province. Sasol will be a key player when national government finalises policy on biofuels. Sasol is already making 285 000kl of absolute alcohol in ethanol from sugar fermentation annually. About 60-million litres of liquid fuel is produced each day at the coal-to-liquid plant run at Secunda. Sasol has finished its mine replacement programme and feedstock is secure until the year 2050. Another part of the REIPPPP covers the conversion of biomass to energy. At Sappi’s Ngodwana mill, a 25MW project is underway. Transnet Pipelines runs a 3 800km network of underground, high-pressure petroleum and gas pipelines throughout the eastern parts of South Africa. The company’s sophisticated multi-product pipeline (NMPP) between the coast and Gauteng transports a range of liquid products. ■ MPUMALANGA BUSINESS 2020/21 22

Water National department steps in with tanks and trucks. OVERVIEW In response to the Covid-19 crisis, the National Department of Water and Sanitation (DWS) delivered 500 water tanks and 56 water trucks to several Mpumalanga municipalities. This was to ensure that residents had a reliable supply of water to wash their hands and for drinking. The Operations and Maintenance Division of Nafasi Water is responsible for large water treatments plants at Middelburg and eMalahleni. Nafasi is a rebranding of Aveng Water which was purchased by Infinity Partners for R95-million in 2019. Infinity is owned by the former Aveng Water CEO Suzie Nkambule and E-Squared Investments. The Middelburg Water Reclamation Plant (MWRP) produces no brine and avoids energy-intensive methods, a world first for a mine water treatment plant. Phase 2 of the eMalahleni project produces drinking water after treating mine water from one of the collieries of Anglo American Thermal Coal. Rapid growth in the Ehlanzeni District Municipality has persuaded the Provincial Government of Mpumalanga to build a new dam on the Crocodile River in the City of Mbombela. Citizens of the Thembisile Hani Municipality will get more immediate relief from water shortages with the construction of a treatment plant on the Moses River. Acting on a disturbing report published by the Centre for Environmental Rights on the way some mining companies are using water, a provincial Environmental Management Committee has been appointed to conduct environmental impact analysis and assess climate change threats. NuWater was contracted to reduce waste at the water treatment plant for eMalahleni Municipality. An ultra-filtration technology was used to reduce waste from 20Ml/day. A total of 327 water infrastructure projects benefiting 350 259 households have been completed, with a further 165 sanitation projects finalised. A bulk water supply system connecting villages within the Bushbuckridge area has been completed. Rand Water has taken over the operations of the Bushbuckridge Water Board. A joint project with Eskom related to rain-water harvesting will also create jobs. The Siyasebenza Job Creation Initiative is intended to Online Resources Inkomati-Usuthu Catchment Management Agency: Komati Basin Water Authority: National Department of Water and Sanitation: Water Research Commission: Image: Nafasi Water Sector Insight Nafasi Water is a recent purchase for Infinity Partners. create 900 jobs in the Nkangala District Municipality. The Imkomati-Usuthu Catchment Management Agency covers Mpumalanga, parts of Limpopo and part of the Kingdom of Swaziland and is responsible for water usage issues relating to the following river catchment areas: Sabie- Sand, Crocodile, Komati, Nwaswitsontso and Nwanedzi. The Komati Basin Water Authority (KOBWA) is an important agency in controlling water resources in the region. Formed out of a cooperation agreement between South African and Swaziland, the agency has built two large dams and is responsible for their upkeep. ■ 23 MPUMALANGA BUSINESS 2020/21

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