Northern Cape Business 2019/20 edition

SPECIAL FEATURE A

SPECIAL FEATURE A REGIONAL OVERVIEW OF THE NORTHERN CAPE PROVINCE By John Young Major infrastructure is under construction in the Northern Cape —or it will be soon — as the province prepares to move its economy into top gear. Water schemes, an economic development zone, a railways logistics hub, a Special Economic Zone at Upington Airport, a new harbour and a new university are among the infrastructure projects underway or under consideration in South Africa’s largest province. The planned Special Economic Zone (linked to the Upington International Airport) is intended as a site for solarrelated manufacturing. The Industrial Development Corporation has spent R11.4- billion of its commitment to renewable energy so far in the Northern Cape. Part of the IDC’s role has been to take up a 20% stake in projects on behalf of local communities. Provincial assets The Northern Cape is South Africa’s largest province at 372 889km², covering 30% of the country’s landmass on the dry western side of the country bordering the Atlantic Ocean, Namibia and Botswana. The Sishen-Saldanha ore export railway line is one of the mechanical wonders of the world. The line extends 860km and the NORTHERN CAPE BUSINESS 2019/20 6

SPECIAL FEATURE trains sometimes extend beyond 3 500 metres and carry a load exceeding 41 000 tons. The Northern Cape produces more than 84% of South Africa’s iron ore. Kumba Iron Ore is the country’s biggest iron-ore miner with two large two mines (Sishen and Kolomela) in the province. The Kalahari Basin contains 80% of the world’s manganese reserve, but only 15% of global production comes from this area so there is enormous scope for development. Several new black-owned manganese projects are underway. The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand. Vedanta Zinc International started work in 2015 on its huge new Gamsberg Zinc project. The new mine is near to Vedanta’s existing Black Mountain mine and is the biggest current new project underway The flotation area of the mine is shown here in a photograph by Kevin Wright. The province also has copper, lead, zinc, mineral sands, gypsum, granite, asbestos, fluorspar, semi-precious stones and marble. The Northern Cape is a big contributor to the national basket of exports in minerals and in agricultural products such as table grapes and raisins. About 45 000 people are employed in agriculture, which represents approximately 16% of employment. The province supports livestock farming (mainly goats and sheep with cattle in the north), table grapes, dates, cotton and cereal crops and vineyards along the banks of the Orange River, large varieties of crops including cotton, groundnuts, wheat and maize on irrigated lands. Pecan nuts are a major new crop. Thoroughbred horses are bred in the south-eastern parts of the province, especially around Colesberg. The Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site and the Namaqualand spring flower display draws many visitors. Most of the province falls into the category of semi-arid (apart from the coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold. District municipalities Frances Baard District Municipality Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp. This district accounts for 40.3% of the province’s economic activity. It is the smallest but with a population of approximately 325 500, it is the most densely populated. Although Kimberley is historically 7 NORTHERN CAPE BUSINESS 2019/20