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Mpumalanga Business 2022-23

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The 2022/23 edition of Mpumalanga Business is the 13th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. With messages of welcome to potential investors from both the provincial premier and the MEC responsible for Economic Development and Tourism, this edition of the journal also contains the official Mpumalanga Investment Prospectus, a comprehensive survey of the province’s assets and the potential of the region. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail, outlining how producers, processors and logistics firms stand to benefit and where there is potential for investment. In addition to the Prospectus, the journal contains a special feature on education and a series of brief news briefs about some of the most important sectors in the provincial economy.

KEY SECTORS MINING,

KEY SECTORS MINING, MINERALS AND ENERGY Mining is the province’s largest single sector providing employment to 5.2% of the province’s workforce and making up 20% of gross value added by region (GVA-R). Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest coal-exporting region in the world. Coal 3% is the lifeblood of provincial economy, fuelling 11 Eskom power plants, which produce 80% of South Africa’s electricity. Coal is of South Africa’s Mpumalanga’s single coal production largest export product, shipping mainly to India and Pakistan. MINERALS COAL Waste briquettes GOLD JEWELLERY CHROME PLATINUM IRON ORE VANADIUM MANGANESE GRANITE Building cladding & tombstone CLAY Porcelain & ceramics Electrical insulators 0% of South Africa’s national coal reserves Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the second-largest export from the province.Platinum and chrome ore mining is located in the Steelpoort and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex. The mining services and technology industry is an important subsector in Mpumalanga. With over a century of commercial mining operations in the province, homegrown technologies are now exported globally. National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and WBHO will also be involved. Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. R3.8-billion To be spent by Exxaro on its Belfast coal mine, one of five assets in Mpumalanga 69 000 People were employed in the mining industry in Mpumalanga in 2021 (StatsSA) 16 Platinum group metals (PGMs) projects are underway in the province, home to part of the eastern limb of the Bushveld Igneous Complex

KEY SECTORS GREEN ECONOMY AND JET Mpumalanga has historically been at the heart of the South African energy and industrial complex and is still heavily reliant on the mining and burning of fossil fuels. The Mpumalanga Provincial Government has been proactive in exploring opportunities in the Green Economy and pursuing a just transition to a low-carbon economy which secures the future and livelihoods of workers and their communities. Achieving such a just transition would require an integration of economic opportunities in sectors outside of energy and mining. Mpumalanga has 11 ESKOM POWER plants A Just Energy Transition (JET) to a Green Economy presents the following opportunities: • Renewable energy: solar, biomass, natural products • Gas and associated industries • Sustainable smart agriculture: environmentally-friendly agriculture and agricultural processing • Circular Green Economy: waste recycling, water reclamation, land rehabilitation • Soft infrastructure: reskilling and institutional capacity-building for a carbon-neutral future • Hard infrastructure: investment and expertise are needed in urban planning, water and waste management • Building technologies: greener and more energy-efficient • Transport and logistics: greener and more energy-efficient Specific opportunities include: • There are plans for the decommissioning of 11 000MW of Eskom’s coal-fired capacity by 2030. Opportunities are presented by repurposing land. • The vast new fields of natural gas found off the coast of Mozambique could have a big impact on the Mpumalanga economy. • A Renewable Energy Development Zone (REDZ) is planned for eMalahleni / Witbank where coal jobs are at risk. 25MW One 18 The biomass energy plant at Sappi’s Ngodwana Mill started producing in March 2022 and can get through 35 tons per hour of biomass Pilot site of Carbon Capture, Utilisation and Storage (CCUS) project near power stations and chemicals complex, run by Council for Geoscience Winning bids from an auction among independent power producers (IPPs) to use Eskom land to generate 1 800MW of renewable energy

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