South African Business 2023

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. ■
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SOUTH AFRICAN BUSINESS 2023