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South African Business 2023

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A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za. A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law. 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 online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

OVERVIEW Mining

OVERVIEW Mining Platinum’s role in green hydrogen is a boon for miners. SECTOR INSIGHT An Australian company has listed on the JSE. Platinum prices have buoyed the South African economy through tough times. Credit: Implats Australia has one of the world’s most dynamic mining sectors so it was good news for South African mining and the JSE when Southern Palladium listed in Johannesburg in June 2022. With a primary listing on the ASE, Southern Palladium has a majority share in Miracle Upon Miracle Investments Propriety Limited (MUM), a local company which has prospecting rights south of Modikwa mine in Limpopo, a joint venture run by Anglo American and African Rainbow Minerals. The balance of equity in MUM is owned by a company owned by the Bengwenyama-you-Maswazi community. The new-age minerals that miners are increasingly paying attention to are copper, bauxite and magnesium. Sibanye-Stilwater is increasing its exposure to minerals and technology that will be needed in the greener future. Two of the South African firm’s board have joined the board of Finnish lithium company Keliber and Sibanye’s stake in the company was raised to 80% in October 2022. The Keliber project is expected to supply about 15 000 tons a year of lithium hydroxide, the product which is used in the manufacture of lithium-ion batteries for electric vehicles. As the world tries to decouple from the carbon economy, miners and energy planners are increasingly turning to green hydrogen to solve mankind’s biggest problem. Green hydrogen is hydrogen created using renewable resources, and the Northern Cape has those in abundance. The Northern Cape Green Hydrogen strategy was announced in 2021 at COP 26. A Northern Cape Green Hydrogen Symposium was held in 2022 and Sasol is in the process of conducting a pre-feasibility study on hydrogen for the province. Any developments in that sphere will be linked with, and give a boost to, the Boegoebaai Harbour project. The National Department of Mineral Resources and Energy, in collaboration with the Northern Cape Provincial Government, hosted the Northern Cape Mining and Minerals Investment Conference in 2022. The department’s stated goal is that all South Africans should derive sustainable benefit from the country’s resources. The province’s considerable mineral wealth was outlined to potential investors and plans for infrastructure development (such as industrial parks and Special Economic Zones) were highlighted. Another province to take advantage of the green hydrogen SOUTH AFRICAN BUSINESS 2023 46

OVERVIEW economy is Limpopo. In May 2022, Anglo American unveiled a prototype of the world’s largest hydrogen-powered mine haul truck designed to operate in everyday mining conditions at its Mogalakwena PGMs mine in South Africa. Anglo American intends using green hydrogen which it will produce at the mine to feed into its green-hydrogen system, which includes production, fuelling and a haulage system. The 2MW hydrogenbattery hybrid truck generates more power than its diesel predecessor and can carry a 290-ton payload. Forty Anglo trucks will be retrofitted, starting in 2024, and the whole fleet should be green by 2030. Both Special Economic Zones (SEZs) in Limpopo are showing interest in green hydrogen. The operating company of the Musina-Makhado Special Economic Zone (MMSEZ) has signed a partnership agreement for green hydrogen electricity generation with Australian company African Resources Development Energy (ARD Energy). The Fetakgomo- Tubatse Special Economic Zone (FTSEZ), on the other hand, has plans to turn that area’s platinum group metals to good effect in the energy field. Platinum and iridium are important catalysts in the process which creates hydrogen, so that has become one of the big selling points of the FTSEZ. In July 2022, a delegation from the FTSEZ participated in the UK-RSA partnership mission on Hydrogen Economy Roadmap. Anglo Platinum’s 75MW solar plant under construction at Mogalakwena could well become the 320MW plant that the company wants it to be, as President Ramaphosa has announced the lifting of restrictions on the scale of private generation. With ample wind and sun, a long coastline and 75% of the world’s platinum group metals (PGMs), South Africa is well placed to be a leader in the production of green hydrogen. Rhodium palladium, platinum and gold collectively rose in price by more than 50% at one stage during 2021. Increased demand for PGMs has been a trend for some years, driven by the vital role played by PGMs in reducing pollution in the automotive sector. This was boosted more recently by applications for renewable energy and by supply constraints brought about by Covid-19 with production volumes down and shipping made more difficult throughout 2020 and into 2021. For FY2022, Impala Platinum (Implats) announced cash dividends of R14.8-billion paid to shareholders, R12.8-billion taxes and royalties paid to government and procurement of R3.2-billion spent on community businesses. Implats intends expanding production at its Two Rivers PGM mine by 180 000oz. The project will take four years and cost R5.7-billion. In the 2021/22 financial year, mining contributed R127-billion in tax out of a total corporate tax tally of R318-billion. Minerals made up 60% of exports and royalties came in at R28-billion. High commodity prices ONLINE RESOURCES Council for Geoscience: www.geoscience.org.za Minerals Council South Africa: www.mineralscouncil.org.za Minerals Education Trust Fund: www.metf.co.za National Department of Mineral Resources and Energy: www.dmr.gov.za The conversion project to underground mining will extend the life of De Beers’ Venetia diamond mine in northern Limpopo. Credit: De Beers ensured a R180-million higher tax bounty for the South African Revenue Services, amounting in the end to R1.55-trillion. This allowed government to continue with some Covid-relief programmes for longer than had been anticipated. Training The Minerals Education Trust Fund (METF) contributes towards the employment costs of 254 academic staff at nine tertiary institutions in scarceskills subjects such as mine ventilation, rocks mechanics and extractive metallurgy. The 29 members of METF are among the country’s biggest mining companies. Grants are made to institutions for the purchase of equipment but the main point of funding is to support 4 471 undergraduate students, 76% of whom are black African and 39% of whom are female. ■ 47 SOUTH AFRICAN BUSINESS 2023

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