4 years ago

South African Business 2019 edition

  • Text
  • Infrastructure
  • Africa
  • Banking
  • Engineering
  • Construction
  • Trade
  • Economy
  • Zones
  • Energy
  • Investment
  • Invest
  • Business
  • Africa
  • African
  • Sector
  • Economic
  • Industrial
  • Mining
  • Logistics
  • Projects
The 2019 edition of South African Business is the seventh edition of this annual guide to business and investment in South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as Special Economic Zones and African trade provide unique insights, together with comprehensive overviews of critical economic sectors. Other special features focus on the exciting new possibilities in renewable energy, airports as engines of regional growth and the maritime sector as an entirely new prospect for South African entrepreneurs and businesses. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed at

OVERVIEW Guided by the

OVERVIEW Guided by the Zambezi Protocol, the Minerals Council wants mining to be more positive and constructive, working better with the communities in which it operates. New CEO, Mxolisi Mgojo, is simultaneously leading his company, Exxaro Resources, on a programme to make mining sustainable through water sharing with local communities and finding ways to help communities gain access to energy. Access to energy is something that mining concerns and related industries are working on. Many mines are putting plans in place to go “off-grid” as far as possible. Steel producer ArcelorMittal South Africa has asked the National Energy Regulator of South Africa (Nersa) for a negotiated price agreement (NPA) to help it cope with the volatility in exchange rates and lower domestic demand. Silicon Smelters, which has plants in Mpumalanga and Limpopo, has asked for a two-year negotiated price agreement (NPA) on electricity, which would allow it to resume production. Nersa has the power to grant such exemptions in a strategic industry. Investments Limpopo Province is the site of two new Special Economic Zones which will have a mining focus. Mineral beneficiation is a key component of the newly accredited Musina-Makhado Special Economic Zone (SEZ) in the far north of Limpopo. In 2018 nine Chinese companies committed to investing more than -billion in projects related to the zone’s four main areas of activity: a coking plant, a power plant, an alloy factory and the manufacture of steel. Shenzhen Holmor Resources Holdings, as the manager of the Energy and Metallurgical Cluster within the SEZ, will invest about R40-billion to create infrastructure. The planned Tubatse Platinum SEZ (for which accreditation has been submitted) will focus on platinum group metals beneficiation. According to the Limpopo Economic Development Agency, 17 new mines were established in the greater Tubatse/Burgersfort/ Steelport area between 2001 and 2016, and a further 22 new mines are planned. The completion of the large new De Hoop Dam makes these plans possible. A Mining Supply Park is envisaged which will be a big boost for local businesses and suppliers. Getting local small businesses supplying to the mining sector is a goal of the provincial authorities. E&T MINERALS SUCCESS STORY It’s said that the true content of one’s character is not defined by good times but rather by times of adversity. This rings true with E&T Minerals. Being in a volatile sector such as commodity trading, we found ourselves in dangerously troubled waters in the last quarter of 2015 through to the first half of 2016. We took this experience as an opportunity to introspect, assess the market, re-evaluate our strategy and organisational structure to map a sustainable path forward. In 2018, we have not only survived, we have built a solid team and organisation that is growing at a healthy pace. Emmanuel Ngulube Impala Platinum (Implats) has created Tubatse Platinum, a vehicle in which local businesses hold a nine percent stake in the Marula platinum mine which is located north of Burgersfort. Two other empowerment partners are involved. A black empowerment deal in the Northern Cape recently reported good returns. Hotazel is the site of a relatively new manganese mine, Tshipi é Borwa. Tshipi e Ntle Manganese Mining (Tshipi) is a joint venture between Pallinghurst Co- Investors and a black empowerment company representing several groups called Ntsimbintle Mining. A number of non-government organisations (NGOs) such as the Black Sash have a 2.2% stake in the mine through Ditikeni Investment Company. Indications are that Tshipi can produce about 2.2-million tons of ore per year, for about 60 years. Engineering News reported in 2017 that Ntsimbintle celebrated a R300-million dividend pay-out in July, with a further R500-million agreed on for disbursement in September. Australian miner Orion is putting considerable resources into investigating the possible SOUTH AFRICAN BUSINESS 2019 72

Modi Mining PROFILE Modi offers differentiated contract mining services in a variety of fields across three provinces. About Modi Mining Modi Mining is a 100% black South African owned company founded and owned by mining engineer and entrepreneur Mr Samuel Molefi and a female entrepreneur, Christina Motlapele Molefi. Modi Mining started operations in 2011 and has grown to be operational in three provinces. In the North West Province, Modi Mining serves corporate mining houses in the platinum sector (RBPlats, Impala Platinum and Lonmin). In Mpumalanga Province, Modi works with South32 in the coal sector. The company also manufactures and supplies products for mines such as Sibanye Gold, Gold 1 and Harmony Gold, all of which are based in Gauteng Province. Vision To be the preferred service provider and supplier in the mining industry. Services Modi Mining is a multi-faceted company within the mining industry focusing on contract mining services (surface and underground), civil and bulk earth works, crushing and screening, load and haul, mine rehabilitation, manufacture and supply of blasting barricades. A detailed breakdown of services is as follows: Underground mining services • Conventional mining method: stoping; developing; vamping and sweepings • Equipping and reclamation • Mechanised mining method: capital development (TMM); board and pillar • Hybrid mining method Open cast mining services • Top soil and overburden stripping • Coal seam mining • Rehabilitation, dump/stockpile management Manufacturer and supplier of: • LDPE blasting barricades and pipes Civil services • Civil and bulk earth works • Screening and crushing • Load and haul 73 SOUTH AFRICAN BUSINESS 2019

Other recent publications by Global Africa Network: