South African Business 2017 edition

REGION
netite, zinc, antimony, cobalt, copper, iron, manganese,
tin and many more. Gold was first discovered
in Mpumalanga province in 1883 in the mountains
surrounding what is now Barberton.
Mpumalanga accounts for 83% of South Africa’s
coal production; 90% of South Africa’s coal consumption
is used for electricity generation and
the synthetic fuel industry. Coal power stations
are located close to the coal deposits. Sasol's coal
liquefaction plant in Secunda creates petroleumfrom-coal.
South Africa produces 75% of the world’s platinum,
80% of its manganese, 73% of its chrome and
45% of its vanadium. Mpumalanga has significant
resources of each of these minerals, and several others.
The Witbank coalfields are the most productive
in Africa and the province lies at the southern end of
the eastern limb of the Bushveld Igneous Complex.
Chromite, magnetite and vanadium are found in
significant quantities in the province. The ferroalloy
industry is centred on the town of Middelburg
Deposits of chromite, magnetite and vanadium
in this area are the basis of the ferro-alloy complex
in Witbank-Middelburg (in the Nkangala District
Municipality) and Lydenburg (Mashishing). Nkomati
Mine is South Africa's only pure-nickel operation.
The province's coalfields are in the south and west
of the province.
Mining contributes 21.8% to provincial Gross
Domestic Product (GDP).
Economic future
Mpumalanga aims to provide at least 2 000MW as
part of the national Renewable Energy Independent
Power Producers Procurement Programme (REIPPPP).
The Boschejskop Hydro Dam project would achieve
two goals – alleviate the water shortage in the provincial
capital of Mbombela and provide 300MW
of power.
A private investor would be asked to do the
feasibility study and then finance and construct the
facilities with two future revenue streams in prospect:
a water off-take agreement with Mbombela
and the sale of electricity to the national power
utility Eskom.
Other projects suitable for public-private partnership
include the construction of a solar park to
power the Nkomazi Special Economic Zone and a
wind power plant to be built at Sabie and Lydenburg.
Investors are sought for the development of the
Blyde River Tourism Cluster. More than a million visitors
every year look into this awe-inspiring canyon,
but they seldom stay for long. This project aims to
give the visitor something to do and a closer look
at the canyon via a cable-car trip to Blyde Lake. A
related hotel and restaurant development (and a
skywalk for another, adventurous, way of looking)
are all part of the proposal, which could be parcelled
out to a number of investors depending on their
interest or speciality.
Land is available for developers in the province's
capital city of Mbombela to create an International
Convention Centre. Conference delegates always
like to be in nice places, and the selling point here
would be to link the centre to the province's greatest
tourism assets like the Kruger National Park, the
Blyde River Canyon and God's Window. Space is also
available for the construction of a related hotel and
multi-purpose recreational facilities.
There is relatively little agri-processing that takes
place in the province, with most of the products being
exported in their raw state. The Fresh Produce
Market in Mbombela has been planned to accommodate
investors who want to start factories to
manufacture products such as juice, or packaging
firms. Land has been bought and registered for the
required use in Mbombela as the Mpumalanga
International Fresh Produce Market. Investors in
fresh produce are invited to be take advantage of
Mpumalanga's superior fruit, vegetables and nuts.
The 248ha site is near rail and road links and private
investors are sought to be partners in building
the top structure; services are being laid on by the
province.
Capital Mbombela
Population 4 283 900 (2015)
Area 76 495km 2
Premier David Mabuza (ANC)
Languages Ndebele, Swati, Zulu
137 SOUTH AFRICAN BUSINESS 2017