Mpumalanga Business 2023-24

KEY SECTORS MINING, MINERALS AND ENERGY
Mining is the province’s largest single sector, providing employment to 5.2% of the
province’s workforce and making up 20% of gross value added by region (GVA-R).
83%
of South
Africa’s
coal
production
Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest
coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11
Eskom power plants, which produce 80% of South Africa’s electricity. Coal is Mpumalanga’s
single largest export product, shipping mainly to India and Pakistan.
Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the
second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort
and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex.
The mining services and technology industry is an important subsector in Mpumalanga. With over a
century of commercial mining operations in the province, homegrown technologies are now exported
around the globe.
National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources
will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and
WBHO will also be involved.
Other companies engaged in expansion of life-of-mine projects are Pan African Resources and
Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about
R4.3-billion at Klipspruit.
Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between
Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern
limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga.
Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore
and Merafe Resources.
KEY SECTORS GREEN ECONOMY AND JET
Mpumalanga has historically been at the heart of the South
African energy and industrial complex and is still heavily
reliant on the mining and burning of fossil fuels.
The Mpumalanga Provincial Government has been proactive in exploring opportunities
in the Green Economy and pursuing a just transition to a low-carbon economy which
secures the future and livelihoods of workers and their communities.
Achieving such a just transition would require an integration of economic opportunities
in sectors outside of energy and mining.
A Just Energy Transition (JET) to a Green Economy presents the following opportunities:
• Renewable energy: solar, biomass, natural products
• Gas and associated industries
• Sustainable smart agriculture: environmentally-friendly
agriculture and agricultural processing
• Circular Green Economy: waste recycling, water reclamation, land rehabilitation
• Soft infrastructure: reskilling and institutional capacity-building for a
carbon-neutral future
• Hard infrastructure: investment and expertise are needed in urban
planning, water and waste management
• Building technologies: greener and more energy-efficient
• Transport and logistics: greener and more energy-efficient
Mpumalanga has
11
MINERALS
COAL Waste briquettes
GOLD JEWELLERY
CHROME
PLATINUM
IRON ORE
VANADIUM
MANGANESE
GRANITE Building cladding
& tombstone
CLAY Porcelain & ceramics
Electrical insulators
50%
of South Africa’s
national coal
reserves
ESKOM POWER
plants
Specific opportunities include:
• There are plans for the decommissioning
of 11 000MW of Eskom’s coal-fired capacity
by 2030. Opportunities
are presented by repurposing land.
• The vast new fields of natural gas found off
the coast of Mozambique could have a big
impact on the Mpumalanga economy.
• A Renewable Energy Development Zone
(REDZ) is planned for eMalahleni / Witbank
where coal jobs are at risk.