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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.

SECTOR NEWS Oil and gas

SECTOR NEWS Oil and gas Air Liquide has increased its presence in the province. SECTOR INSIGHT Sasol continues to reduce debt by selling off units. Air Liquide Large Industries South Africa Air is to start operating 16 air separation units (ASUs) as a result of an R8-billion purchase from Sasol. The company’s fleet now comprises 17 ASUs in Secunda, with the 16 units having the capacity to produce 42 000 tons per day of oxygen. Sasol announced in 2021 that it was to sell a 30% in the Romco natural gas pipeline that links Mozambique and South Africa. As part of a global sell-off of assets to reduce debt, Sasol expects to earn more than R5-billion from the transaction. The company will continue to be the pipeline’s operator and maintains a 20% stake in the venture. The Romco pipeline could carry far more gas in the future as there have been big finds of new gas off the coast off Mozambique which could be shipped as liquefied natural gas (LNG) to Maputo and continue from there to the Sasol plant at Secunda. 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-topower in the national power plan is 3 726MW, of which 3 000MW is for LNG. Three natural gas exploration permits have been awarded to Tosaco Energy for the sandstone-rich area between Amersfoort ONLINE RESOURCES Independent Power Producer Programme: www.ipp-projects.co.za Petroleum Agency South Africa: www.petroleumagency.co.za PetroSA: www.petrosa.co.za and Balfour in the western part of the province by Petroleum Agency South Africa (PASA). PASA regulates exploration and production activities, and acts as the custodian of the national petroleum exploration and production database. Tosaco Holdings has a 25% stake in Total SA. Two methanegas exploration rights have been granted to Highland Exploration in the Evander area. 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, including Sappi and Sasol. International chemicals and energy company Sasol has several large plants in Mpumalanga. Sasol Gas is one of the four operations at Secunda, supplying natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal. ■ MPUMALANGA BUSINESS 2022/23 46

Transport and logistics Major roadworks are underway on strategic routes. SECTOR NEWS SECTOR INSIGHT Mechanised potholepatching vehicles are to be deployed. Credit: Motheo Group The South African National Roads Agency (Sanral) will spend R9-billion on road infrastructure in Mpumalanga. The agency, which is responsible for national roads, is concentrating on the upgrading of the N2 between Ermelo in Mpumalanga and KwaZulu-Natal and the R40 between Hazyview and Bushbuckridge. Trans Africa Concessions (TRAC), the toll road company, will spend R248-million on expanding capacity on the bridge over the Crocodile River and creating an upgraded roads junction at the Montrose interchange. Two new bridges will be built to provide access over the Elands Valley section of the road. The Motheo Group, in a joint venture with WBHO, has been working on the N4 (pictured) for TRAC, which has also parcelled out some work to Raubex Construction. Heavy rains and heavy traffic have put a strain on the roads feeding coal mines and power stations. The Provincial Government of Mpumalanga has purchased mechanised pothole-patching vehicles in response to this problem. It is expected that many jobs will also be created in this attempt to improve the strategic road infrastructure network, which includes tourism routes. Sanral has announced a three-year project which will provide work for small contractors in and around the City of Mbombela. More than R26-million has been allocated to subcontracting which will cover things like litter and minor works, minor maintenance, vegetation and bush clearing. There is more freight rail traffic in Mpumalanga than in any other province. This is principally because of the transport of coal, but there are also large volumes of chrome, ONLINE RESOURCES Kruger Mpumalanga International Airport: www.kmiairport.co.za Maputo Corridor Logistics Initiative: www.mcli.co.za Railroad Association of South Africa: www.rra.co.za South African National Roads Agency Ltd: www.sanral.co.za ferrochrome, forestry products, chemicals, liquid fuels and general freight. The Balfour North to Volksrust section of the Gauteng to Durban mainline carries the largest volumes, most of which is long-haul freight passing through the province. Despite these high rail volumes, a huge amount of mineral product is transported by truck around and out of the province. This puts immense pressure on Mpumalanga’s roads network, particularly in the Gert Sibande District and the Nkangala District. The statistics relating to coal haulage in Mpumalanga are stupendous. In one 12- hour period, 34 198 tons of general freight were recorded for the section of the N4 highway between Nelspruit and Komatipoort. Mactransco’s website states that its trucks serving Tshikondeni Coal Mine travel 3.7-million kilometres per year, working all day for six days a week. The fleet of ABF Legend Logistics, a Super Group company, contains more than 200 super-link coal haulage trucks while another company in the group, SG Coal, claims to have one of the biggest fleets of coal haulage trucks in Africa. Coal Tipper Resources operates out of Bethal. ■ 47 MPUMALANGA BUSINESS 2022/23

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