Northern Cape Business 2019/20 edition

FOCUS Kathu Industrial

FOCUS Kathu Industrial Park (KIP) A catalyst for economic growth. Targeted sectors The KIP targets all economic sectors requiring serviced industrial space in the region, but with the major portion of the initial tenant makeup (study phase) primarily serving the established mining sector, by virtue of the KIP’s central proximity to the Postmasburg- Hotazel iron-ore/manganese belt. The KIP is also well positioned to serve the emerging REIPPPP sector in the region. In addition to the ongoing development of business opportunities within the tenant supply chains, it will be the role of the KIP business incubator to expand coverage of the KIP into other sectors. Study phase tenant engagement and commitment to the project has been concluded on a “first come, first served” basis and has covered all possible prospective tenants, regardless of size or level of development. The KIP development caters for all nature of tenant facilities, from large customised facilities through to smaller, economically efficient mini-factories. Project location Farm Sekgame, 461 Kuruman Road, Gamagara Local Municipality, Kathu. GPS coordinates: S27° 42’ 52.5” E23° 02’ 33.8” Job creation During development: 1 300 (direct), 805 (indirect) and 2 273 (induced). During operations: 2 240 (direct), 3 137 (indirect) and 3 446 (induced). Project description The KIP development comprises the following: • Central hub: This will comprise various facilities and the associated infrastructure network supporting KIP management structures. The scope of facilities is envisaged to include: central administration offices; conferencing facilities; an auditorium; a security office; a restaurant; and other social facilities. These are to be located in a hub within the park in a centrally located single-level building, with visitor parking and appropriate landscaping. • A central logistics facility. • A Business Incubation Centre and Training Centre. • Customised warehouses and industrial buildings and (standard specification) mini-factories. • Security fencing and lighting. • Additional infrastructure envisaged for the functionality of the KIP includes: internal roads (tarred and paved), a storm-water system and an internal water reticulation system. Project status Feasibility Study, Project Development Plan, Business Plan and Environmental Impact Assessment Study completed. Currently in the process of finalising KIP Shareholders Agreement, with involvement in the project currently secured from: IDC, Kumba, SIOC- CDT, Assmang and with engagement still underway with South32. Partnerships are in place with the private sector, the Industrial Development Corporation, provincial government and local government. NORTHERN CAPE BUSINESS 2019/20 14

FOCUS Finance KIP is a strategic Social Economic Development (SED) project with extensive short- and long-term benefits which also provides a key point of integration supporting the Northern Cape Share Value Initiative (a strategic initiative recently launched by the Northern Cape Mining Leadership Forum). Government commitment: bulk infrastructure contribution. ​ Private sector investment required: Phase 1 estimated R152-million (to crowd out Project Summary Industrial Development Corporation equity 1. Kathu Industrial Park contribution). Project Location District:Gamagara Local Municipality Physical address: Farm Sekgame, 461 Kuruman Road Key facts GPS Coordinates: S27° 42’ 52.5” E23° 02’ 33.8” Project Name and background City/Town: Kathu Kathu Industrial Park. Sishen Iron Ore Company (Pty) Ltd (“SIOC”) and the Industrial Development Investment Corporation (“IDC”) have funded value: various studies to R530-million assess the feasibility of developing an (Phase industrial 1 park to stimulate sustainable long-term economic development for the Northern Cape region. The estimate) envisaged development will attract all nature of tenants delivering industrial goods and services, to an environment leveraging economy of scale from centralized facilities and complemented by a business incubation and training complex. With the mining industry being the largest real economic sector in the Northern Cape economy (based on contribution to GDP), the town of Kathu - located in the Gamagara Local Municipality (“GLM”) - is the preferred location due to its central proximity to the Postmasburg – Hotazel iron-ore/manganese belt and various established and pending REIPP To discuss this opportunity, contact Mr Stuart Dangerfield, Project Lead, Anglo American Tel: +27 11 679 2181 ​​​​​ Mobile: 083 455 2862 Email: stuart.dangerfield@angloamerican.com ​ Mr Mehmood Ahmed, KIP Director Tel: +27 53 807 1050 ​​​​​ Mobile: 078 801 4081 Email: Mehmooda@idc.co.za Project background Sishen Iron Ore Company (Pty) Ltd (SIOC) and the Industrial Development Corporation (IDC) have funded various studies to assess the feasibility of developing an industrial park to stimulate sustainable long-term economic development for the Northern Cape region. The envisaged development will attract varied tenants delivering industrial goods and services to an environment leveraging economies of scale from centralised facilities and complemented by a business incubation and training complex. With the mining industry being the largest real economic sector in the Northern Cape economy, the town of Kathu is the preferred location due to its central proximity to the Postmasburg-Hotazel iron-ore/ manganese belt and various established and pending Renewable Energy Power Producer Procurement Programme (REIPPPP) projects. It is envisaged that the KIP serve as a catalyst for accelerated growth of other economic sectors. The feasibility study has not only confirmed extensive interest from businesses with a vested interest in the Northern Cape region (ie potential tenants) but has also confirmed the support of various key stakeholders as well as the commitment of a number of investors. There has been interest from financial institutions. This development, located on the R380, is easily accessible from the N14 highway, a major service route between Johannesburg, the West Coast of South Africa and Botswana, and the Kathu airport. The study process has included an assessment of infrastructural requirements and has confirmed integration with Gamagara Local Municipality planning. 15 NORTHERN CAPE BUSINESS 2019/20