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Western Cape Business 2018 edition

  • Text
  • Nedbank
  • Sectors
  • Growth
  • Finance
  • Government
  • Africa
  • Management
  • Infrastructure
  • Transport
  • Opportunities
  • Energy
  • Development
  • Wesgro
  • Vodacom
  • Investment
  • Cape
  • Business
  • Tourism
  • Economic
  • Municipality
The 2018 edition of Western Cape Business is the 11th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the growth of tourism (spurred by an innovative programme designed to create more direct flights to Cape Town), medical technology as a growth sector and the pursuit of excellence that drives the Cape Winemakers Guild. The journal contains a message from Alan Winde, Minister of Economic Opportunities, and contributions from significant business leaders from Accelerate Cape Town, the Cape Chamber of Commerce and the Western Cape Business Opportunities Forum. An interview with Tim Harris, Wesgro’s CEO, reveals some of the recipe for the province’s economic success. Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

OVERVIEW Mining Uranium

OVERVIEW Mining Uranium is under the spotlight in the Karoo. Beaufort West is the latest focus of attention for new mining in the Western Cape. Whether or not South Africa needs nuclear power is a hotly debated topic, but Tasman RSA (which includes Australian-listed Peninsula Energy and a local group called Lukisa JV) has a business plan for extracting uranium in the Karoo and is submitting environmental reports. Dr Stefan Cramer has come out strongly (at www.karoospace. co.za) against the proposed mining, arguing that the environment will be irrevocably harmed and that funding behind the project comes from Russian “oligarch billionaires”. Sixteen rare earth minerals have been identified north of Vanrhynsdorp, with the most prevalent being cerium, an important component of catalytic converters. The acquisition in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of Rareco has given it the right to the rare earth deposits at the Steenkampskraal monazite mine. STL, which already had the thorium rights, is an associate of Thor Energy in Norway. A mineral sands project on the West Coast near Lutzville and Koekenaap has started sending product to China. Australian miner Mineral Commodities (MRC) says it will spend R5-billion to 2019 in search of zircon, rutile, ilmenite and garnet. Namakwa Sands is a mineral sands operation on the West Coast, owned by Tronox. In 2017, South African resources company Exxaro sold some of its shares but retained enough of a stake for Tronox to keep its BEE certification. The company has a mine and concentration plant at Brand-se-Baai and a mineral separation plant at Koekenaap near Lutzville about 350km from Cape Town. Ilemnite, rutile and zircon are extracted at this site and then taken to the company’s smelter at Saldanha Bay. ONLINE RESOURCES Chamber of Mines of South Africa: www.chamberofmines.org.za Council for Geoscience: www.geoscience.org.za Geological Society of South Africa: www.gssa.org.za National Department of Mineral Resources: www.dmr.gov.za SECTOR INSIGHT Ilemnite, rutile and zircon are found on the West Coast. Zircon is used in tile glazing and ilmenite is melted to become pig iron for use in engine blocks. The left-over slag is used as pigmentation in paints. The Cape Bentonite Mine (with five quarries) near Heidelberg is run by Ecca Holdings with another site east of Knysna at Roode Fontein. Dimension stone occurs around Vanrhynsdorp (which also has some gypsum) and mediumgrain granite is found at Paarl. Limestone for cement, agricultural lime and feed lime is extracted at several sites in the province’s western regions while kaolin is found in Noordhoek and Somerset West. Ball clay is mined in the Albertina district by G&W Base and Industrial Minerals, a subsidiary of the Zimco Group. Pretoria Portland Cement (PPC) has operations near Riebeeck-West and Piketberg (De Hoek). Slasto and building stone is quarried near Clanwilliam. Consol quarries glass sand near Philippi. WESTERN CAPE BUSINESS 2018 84

Oil and gas OVERVIEW New terminals and increased storage capacity have boosted the sector. SECTOR INSIGHT A new LPG terminal has been opened at Saldanha. • Foreign investors are showing interest. The Western Cape’s status as an oil and gas hub was enhanced in August 2017 with the opening of a new openaccess liquefied petroleum gas (LPG) import and storage terminal at Saldanha Bay. A public-private partnership is behind the R1-billion terminal, the largest of its kind in Africa. Investors include Sunrise Energy, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Royal Bafokeng Holdings. More than 7 000 direct jobs were created in ship and rig repair sector of the oil and gas business in 2015, according to a report done for the Western Cape Provincial Government. Foreign investors are showing a keen interest in the growing sector, which contributed R1.5-billion to the provincial economy. The Oil and Gas Alliance reported in July that it was having regular meetings with interested investors. A new facility is to be added to the oil and gas sector in Cape Town – a 118 000m³ fuel storage unit. The Bergun terminal will comprise 12 tanks located on the Eastern Mole of the Port of Cape Town and it will be connected by pipeline to the Chevref refinery. 85 WESTERN CAPE BUSINESS 2018

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