KwaZulu-Natal Business 2023-24

OVERVIEW
Mining
High courts rule on coal expansion project.
A
project to extend the life-of-mine of an anthracite coal mine
in a rural community north of Richards Bay will go ahead
after several visits to high courts.
Mining at Somkhele was halted in 2022 on the basis of
a North Gauteng High Court ruling relating to various
permissions not having been obtained by Tendele Coal
Mining (a Petmin subsidiary) but in July 2023 a judge of
the KwaZulu-Natal High Court, Pietermaritzburg, ruled that
mining could continue.
The case was brought by the Mfolozi Community
Environmental Justice Organisation and other NGOs,
including the Global Environmental Trust. A trust holds
20% ownership of Somkhele, of which 80% belongs to a
community trust and the balance to an employees’ trust.
Richards Bay Minerals (RBM), a subsidiary of the Rio
Tinto Group, resumed operations at its mineral sands
plant and refinery in 2021 but has not yet committed to continuing
to invest in a major mine-life extension. The main products of the
RBM mine are zircon, rutile, titania slag, titanium dioxide feedstock
and high-purity iron.
RBM’s dune and environmental projects, pictured, have so far
rehabilitated more than 3 311ha. More than 35 scientific studies
have been conducted by scientists from around the world who have
studied the company’s methods.
Since 2018, titanium dioxide producer Tronox Holdings has
contributed R22-million per year to local communities, including
through local procurement opportunities. Tronox exports titanium
ore, zircon and other materials to its pigment plants around the world
where titanium dioxide pigment is produced for use in paints, plastics
and paper. About 21% of the company’s workforce is made up of
women. The KZN Sands mineral sands operation comprises a central
processing complex in Empangeni and the Fairbreeze Mine.
Most of the product from the smelter (high-quality primary
aluminium ingot) is exported but some liquid metal form is sent to
Isizinda Aluminium which supplies Hulamin, a company that has had
a rolling mill in Pietermaritzburg since 1949. Hulamin is the only major
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Geological Sciences, University of KZN: www.geology.ukzn.ac.za
National Department of Mineral Resources: www.dmr.gov.za
SECTOR INSIGHT
More than 60% of
Hulamin’s sales come
from exports.
aluminium rolling operator in
the region and it makes rolled
products and extrusions.
The Covid pandemic in 2020
added to the ongoing problem
of reliable electricity supply,
which is a critical issue for a big
energy user like a smelter. After
extended negotiations, South32
and Eskom have signed a longterm
energy supply agreement
for the Hillside Aluminium
smelter to 2031.
Other processing facilities in
the province include the steel
plant owned by Arcelor Mittal
in Newcastle and Safa Steel’s
metal-coating factory in Cato
Manor. Some of the coalfields of
the province have been revived.
Luxembourg-based Traxys
Africa, which has chrome
mines in Mpumalanga and
Limpopo provinces, runs a
high-carbon ferrochrome
plant at Richards Bay. ■
KWAZULU-NATAL BUSINESS 2023/24
22
PHOTO: Richards Bay Minerals