Mpumalanga Business 2018-19 edition

A REGIONAL OVERVIEW OF

A REGIONAL OVERVIEW OF MPUMALANGA A new World Heritage Site will boost regional tourism. By John Young The decision by UNESCO to afford World Heritage Site status to the Makhonjwa Mountains near Barberton will boost geological tourism to the province and supports the efforts of the province to diversify its offering. Major projects to improve tourist experiences are underway at the Graskop Gorge (where a transparent lift takes tourists into the depths of the gorge), a skywalk is to be built at God’s Window and a cable car is planned for Three Rondavels. The international body’s decision has also had the effect of expanding the curriculum at the relatively new University of Mpumalanga. On the basis of the UNESCO ruling, UMP will offer geology as part of a BSc in 2019, to supplement existing courses in education, agriculture and hospitality. Several investment projects aimed at providing infrastructure in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). Mpumalanga hosted the 2017 National World Tourism Day in September, an event which was intended to move an already healthy economic sector into an even bigger creator of wealth and jobs. Heritage and cultural tourism are in the spotlight because Mpumalanga is already a leader in nature reserves and parks. There is a special focus on BRICS countries and provincial authorities are investigating a tourism airlift route between Moscow and Mpumalanga. Mpumalanga has rich and varied mineral resources and fertile soil that supports diverse farming operations. South Africa’s major power stations, three of which are the biggest in the southern hemisphere, are in Mpumalanga. The building of the new Kusile power station is one of the biggest infrastructure projects in the country’s history. MPUMALANGA BUSINESS 2018/19 8

SPECIAL FEATURE The province also hosts large companies in the manufacturing sector, with internationally renowned firms such as Sasol (pictured below, mining, synthetic fuels and chemicals) and Xstrata (ferrochrome) having large operations in the province. Columbus Stainless in Middelburg is a major producer of stainless steel, while Middelburg Ferrochrome, Thos Begbie and the Nelspruit-based Manganese Metal Company are among other important heavy industrial companies. The province’s rich agricultural produce is used by companies such as McCain, Nestlé and PepsiCo and there are also pulp and paper plants (Sappi and Mondi), fertiliser facilities and textile manufacturing concerns. The decision by Sappi to start producing dissolving wood pulp at its Ngodwana Mill has significantly increased the manufacturing capacity of the province. York Timbers is a leading forestry company and the sugar mills and refinery of RCL Foods (formerly TSB Sugar) are large contributors to the provincial economy. Sasol, the integrated oil, gas and chemicals company, runs several plants at Secunda. Products manufactured at the complex include synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary feedstock for syntheticfuel production is coal, and the plant is in the heart of Mpumalanga’s coalfields. More than 80% of South Africa’s coal is sourced in Mpumalanga, with the town of Emalahleni (Witbank) being the centre of the industry. Other minerals found in the province include gold, Platinum Group Metals, chromite, zinc, cobalt, copper, iron and manganese. The southern half of the eastern limb of the platinum-rich Bushveld Igneous Complex runs south towards the towns of Lydenburg and Machadodorp. Deposits of chromite, magnetite and vanadium in this area are the basis of the ferro-alloy complex in Witbank-Middelburg and Lydenburg. Nkomati Mine is South Africa’s only pure nickel operation. Beneficiation of minerals and agricultural produce The Nkomazi Special Economic Zone and the International Fresh Produce Market are two major initiatives which aim to drive economic growth, boost value addition within the province and create jobs. A major goal of the provincial government’s Mpumalanga Economic Growth and Development Path (MEGDP) is to expand the industrial base of the provincial economy. The focus is on beneficiation, agri-processing and value-chain development. These projects are the subject of a separate article elsewhere in this publication. The biggest companies in Mpumalanga’s most significant sectors have been investing heavily in infrastructure and operations. Global energy and chemicals company Sasol regularly spends tens 9 MPUMALANGA BUSINESS 2018/19