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Mpumalanga Business 2019/20 edition

  • Text
  • Africa
  • Transport
  • Water
  • Gas
  • Processing
  • Mining
  • Incentives
  • Sectors
  • Business
  • Investment
  • Parks
  • Forestry
  • Manufacturing
  • Highveld
  • Tourism
  • Sasol
  • Province
  • Economic
  • Industrial
  • Mpumalanga
The 2019/20 edition of Mpumalanga Business is the tenth issue of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special focus on the new life given to an established site at the Highveld Industrial Park and the Nkomazi Special Economic Zone (NSEZ). A useful article on what incentives are available to investors is included, and the Mpumalanga Economic Growth Agency (MEGA) gives investors some perspectives on what is available in the province. Mpumalanga has several investment and business opportunities in a wide range of sectors. Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media

SPECIAL FEATURE gorge),

SPECIAL FEATURE 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 is offering geology as part of a BSc degree, to supplement existing courses in education, agriculture and hospitality. Several infrastructure investment projects in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). To promote the province, the Mpumalanga Tourism and Parks Agency regularly participates in IMEX events in Frankfurt and Las Vegas, Africa’s Travel Indaba and WTM Africa. 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. The TRILAND partnership with Eswatini and Mozambique is another avenue, as is the collaboration with KwaZulu-Natal, Eswatini, Mozambique and the Seychelles. The latter project is called east3ROUTE Tourism Initiative and proclaims “Experience, Adventure, Scenery and Trade” between the participating provinces and countries. Mpumalanga has rich and varied mineral resources and fertile soil that supports diverse farming operations. The province hosts large companies in the manufacturing sector, with internationally renowned firms such as Sasol (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 synthetic-fuel 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 minerals, 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 Machdoadorp. 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. Investments 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 of millions on upgrades and improvements at its Secunda complex. The Sasol Synfuels refinery is the only commercial coal-to-liquid fuel plant in the world and constitutes a key component in South Africa’s oil and gas sector. Sasol Mining is also very active in the province: three of its projects are valued at more than R8-billion and the third and final mine in its replacement mine project was launched in 2019. Exxaro Resources is investing R3.8-billion in a new mine at Belfast. MPUMALANGA BUSINESS 2019/20 10

SPECIAL FEATURE Another global giant, Sappi, has invested Differences in temperature and rainfall between heavily in the conversion of its massive Ngodwana the Highveld and Lowveld can be considerable. Mpumalanga Mill (pictured), and other has 40% companies of South in Africa’s the paper forestry One resources. of the fastest growing agricultural sectors and forestry field such as Mondi and York Timbers is macadamia nuts. SECTOR These are INSIGHT This fact presents an opportunity to exploit the sector’s cultivated in the make large contributions the province’s economic by-products growth. in the biomass-to-energy field. Lowveld and are exported in ever-growing The Focus on Forestry conference will target digital The Zebra Pellets plant in Sabie is to be volumes. converted The Nelspruit district in the Lowveld The restarting of the Evraz Highveld steel mill in is South Africa’s second biggest producer of by national utility Eskom into a torrefied pellet plant. The wood will solutions. 2017 was particularly good news, after the company citrus fruit, while vegetables of all sorts do well be provided to the plant (owned by the Industrial Development went into business rescue two years before. in this area too. Corporation) and then heated without the use of oxygen (torrefied) in 2019 by the Centre for the ArcelorMittal South Africa continued supplying Large parts of the province are in the so-called which feedstock creates to a coal-like the mill and product in 2019 without took up its the option carbon. Middleveld comprising Modernisation high-plateau of grasslands. Forestry Plans to purchase to develop the an mill. Agriculture The rest of and the Forestry mill complex Technology Forestry Park operations are Operations are found (CMO), in central the Institute and being property, drawn up the by rebranded the Provincial Highveld Government Business of Park, Mpumalanga. south-eastern The Mpumalanga, for Commercial but Forestry the heart Research of this Mpumalanga is now a thriving Economic mix Growth of engineering and Development concerns, Path important (MEGDP) industry (KZN is around University) Sabie in and the the east. Nelson The intends manufacturers, to expand the distributors industrial base and commercial of the provincial Mpumalanga economy, forestry Mandela sector University. is one of the most with enterprises a focus on trading beneficiation, in an established agri-processing area with and important value chain the country: Forestry 11% of accounts the total land for about area development. excellent infrastructure and logistics links. of Mpumalanga is 8% covered of Mpumalanga’s either by plantations gross or When forestry managers, contractor and forestry natural equipment forests. Large domestic sugar operations product. The are found sector suppliers gather at the biannual Focus on Forestry conference in the south-east in comprises of the province. logging, saw-milling, White Geography River in 2019, the theme will be “Bridging the digital The divide province wood has excellent product roads and and pulp railway and in the African forestry sector”. connections and paper is well manufacture. served by airports, Pulp and Sustainability The Drakensberg is a key escarpment area for sharply companies divides in the the forestry airstrips sector and heliports. paper The are Kruger the main Mpumalanga exports, western grasslands at high altitude (Highveld) International Airport and Hoedspruit Airport are and advances in the Internet of Things and AI are being keenly along with sawn lumber, wood and the subtropical component to the east, the the province’s two main airports. monitored for ways to enhance margins in an environmentally chips and wattle extract. Most Lowveld. The central region of the province The Maputo Development Corridor is a sound way. sawn timber in South Africa is is mountainous, with dramatic landscapes transportation corridor comprising road, rail, The presenting conference, exciting which vistas also looks for at visitors. topics The such as border silviculture, posts, port used and in terminal the construction facilities, running sector. fire management Lebombo Mountains and forest rise in the engineering, east. alternates from between Pretoria in Gauteng Mpumalanga through Mpumalanga has the ideal to Mpumalanga The southern and KwaZulu-Natal and northern Highveld and will regions be jointly organised produce large quantities of field crops such as barley, soybeans, maize, grain and sorghum. MPUMALANGA BUSINESS 2018/19 38 Potatoes also flourish in this area. Most of the province receives summer rainfall, often via thunderstorms. Frost is common on the Highveld but is almost absent in the subtropical regions where fruit, nuts and citrus thrive. the Port of Maputo climate in Mozambique. and topography The corridor for supports high volumes of cross-border freight services and aims to boost trade within and beyond the region. Industry and tourism benefit from the concentration of resources and ease of transportation. This international initiative emphasises Mpumalanga’s excellent location as a logistics and transport hub. 11 MPUMALANGA BUSINESS 2019/20

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