OVERVIEW three mills
OVERVIEW three mills (including Pongola in northern KwaZulu-Natal) have been able to maintain volumes because of extensive irrigation schemes. The company was bought by RCL Foods in 2014. TSB Sugar has been increasing the amount of cane it takes from community trusts and small-scale growers. The proportion of land used to harvest cane from small-scale growers on community land has grown to 15%, with 64% coming from commercial farmers and community trusts and 21% from TSB’s own land. About 44 000ha in the province is under sugar cane. Commercial farmers account for 27 000ha, emerging farmers for 9 500ha and TSB Sugar has 7 800ha of its own. Companies Fresh fruit and nut supplier Halls has developed a countrywide reputation since it was incorporated as a company in 1921. Halls’ Mpumalanga operation (Mataffin) produces an avocado crop of about 1 300 tons, 37% of the company’s output. Europe buys most of Halls’ 1.6-million cartons of exports (4kg equivalents) and this represents about 60% of production. The company is one of South Africa’s biggest exporters of litchis and total production is about 850 tons in a good year. Halls cultivates 375ha of its own land and has another 1 400ha under management. The Matsafeni Trust is the company’s biggest outgrower and exports in the region of 300 000 cartons every year. Westfalia is a diversified agricultural group which runs extensive ONLINE RESOURCES ARC-Institute for Tropical and Subtropical Crops: www.arc.agric.co.za Citrus Growers Association: www.cga.co.za Fresh Produce Exporters’ Forum: www.fpef.co.za Perishable Products Export Control Board: www.ppecb.com operations in the province. The group’s South African operations regularly sell more than five-million cartons of avocados (50% of the country’s export volume) and seven-million cartons of mangoes. Westfalia is a subsidiary of the Hans Merensky Group and most of its holdings are in the neighbouring province of Limpopo. Umbhaba Estates is one of the biggest banana growers in the province. The drier Highveld region with its cold winters supports crops such as cereals, legumes and nuts. There is extensive irrigation in the Loskop Dam area. Ermelo in the centre of the province is one of South Africa’s main centres of sheepfarming and wool-production. Standerton in the south-west is a dairy centre and Piet Retief in the south-east concentrates on sugar and tropical fruit. Subtropical fruit flourishes in the Lowveld with the town of Nelspruit being a major citrus producer. Mangoes, avocados, pecan and macadamia nuts, bananas and papayas also thrive. The Subtropical Fruit Growers’ Association represents about 400 avocado growers. Subtropical fruit altogether has a combined turnover of R950-million and employs about 13 000 people. Mixed farming and potatoes, sweet potatoes and beans are mostly found in the southern and western parts of the province. Between them, the highlying areas of Mpumalanga and the Free State account for 40% of South Africa’s potatoes. MPUMALANGA BUSINESS 2018/19 32
Mining The provincial government may start a mining company. OVERVIEW Mafube coal mine is a JV between Anglo American Coal and Exxaro 30km west of Middelburg. Mpumalanga’s coal-fired power stations have provided South Africa with electricity for decades and continuing investment in new projects will prolong that tradition for many years yet to come, despite increased interest in renewable resources. Nkomati Anthracite has been revived and is up and running after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. The high-grade anthracite that the mine will produce is suitable for use by the ferro-metals industry because it has low phosphorus and sulphur levels and high fixed carbon percentages. The communities of Kwalugedlane, Matsamo and Mawewe have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%. Coal giant Exxaro has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion, according to the Premier’s office. Exxaro will establish an 80ha agri-village and spend R50-million to accommodate the 32 households who are affected by this new mine. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. The mine has 1 200 permanent employees. In his 2018 State of the Province speech, then Premier David Mabuza noted that mining contributes 25.9% of GDP and employs 53 000 people. He further noted the sad closing of the Lily Mine (because of fatalities) SECTOR INSIGHT New safety measures include Wi-Fi for underground miners. • Unicorn Capital Partners has restarted Nkomati Anthracite Mine. and Glencore’s Optimum Colliery and raised the possibility of developing a diversified, state-owned mining company. MEGA has been tasked with investigating whether it might be possible, looking at the resources which the state already holds (as seen in MEGA’s stake in Nkomati Anthracite). Said Mabuza, “We cannot have mining assets in this province that are lying idle and unproductive when unemployment is this high. We have to find innovative ways to revive such mines.” 33 MPUMALANGA BUSINESS 2018/19
