Views
3 months ago

Service Issue 85

  • Text
  • Collaborate
  • Partnership
  • Business
  • Investment
  • Growth
  • Services
  • Service
  • Government
  • Municipal
  • Opportunities
  • Governance
  • African
  • Mining
  • Municipalities
  • Economic
  • Economy
  • Sector
  • Infrastructure
Service magazine addresses key issues related to government leadership and service delivery in South Africa.

S provincial focus

S provincial focus Limpopo’s fruits and vegetables form an important part of South Africa’s export basket. In response to this demand and the potential of the Chinese market, almost 1 000ha per year of new land is being planted with avocados and another 1 000ha with macadamias. Limpopo grows three-quarters of South Africa’s mangoes and two-thirds of its tomatoes. The Waterberg District produces large quantities of red meat while Capricorn has potatoes in abundance, and Vhembe in the north specialises in citrus and subtropical fruits. The world’s largest avocado grower, Westfalia, part of the Hans Merensky Group, produces significant quantities of mango, litchi, citrus and macadamia and has three agri-processing plants in the province. Greenway Farms supplies about 45% of the fresh-market carrots consumed in Southern Africa under the Rugani brand. VKB Milling has eight silos and 29 retail outlets in Limpopo. ENERGY The province that has huge reserves of coal is paying serious attention to renewable energy. Provincial and municipal bodies are encouraged to promote energy-production projects. The draft 2023/24 Integrated Development Plan of the Waterberg District Municipality refers to the Nalane Green Solar Energy Project, which is implementing its R5-billion investment plan. Samancor intends to build a 60MW solar PV plant to help power its Tubatse ferrochrome smelter complex in the Sekhukhune District Municipality. A battery energy storage system will form part of the energy installation. Ivanhoe Mines is building its own 5MW solar plant and has signed an offtake agreement with Renergen to access the electricity generated by that company’s gas and solar plant in the Free State. Both SEZs in Limpopo are entering the green hydrogen market. MMSEZ has also signed an agreement with a Chinese company for the first phase of a project that will supply 1 000MW of solar power to support the SEZ’s metallurgical complex. The two local municipalities in the area have been allocated R147-million by provincial government for infrastructure upgrades, including electricity. The Fetakgomo-Tubatse SEZ also has intentions of attracting green power. A public-private planning exercise, the Impact Catalyst, is working on focus areas that include biofuels and intends to prepare the province for the emergence of new sectors such as renewable energy. Exxaro’s coal mine at Grootgeluk (which supplies Eskom power plants) will be the site of an 84MW solar project and Northam Platinum is building a 10MW solar plant at its Zondereinde smelter. At Northam’s Eland Mine, a PV solar project serves the dual purpose of keeping engines cool in the car park while producing energy from PV panels. The solar farm will generate approximately 1 800MWh of power yearly (4% of annual electricity demand). The concentrator of the Mogalakwena mine run by Anglo American Platinum (Amplats) relies on a constant electricity supply. Implats uses natural gas to supply its refinery in Springs. In Phase One of the project, 20 Doosan fuel cells generate 8MW of power. The long-term goal is to generate 30MW. MINING The region’s soils are rich in PGMs, coal, copper, diamonds, gold, iron ore, nickel, rare earth minerals and tin. The province contributes 4% of coal mining nationally, but within the next three decades, it will likely supply about half of South Africa’s coal. Waterberg coalfield is estimated to contain about 75-billion tons of coal. Exxaro’s two coal mines in the Waterberg represent three-billion tons of measured coal resources and 1.8-billion tons of indicated coal resources. This is where Exxaro operates its giant Grootegeluk Mine. Nine plants serve a 4km-long and 120m-deep opencast mine on a 1 200ha site. Originally intended to supply the nearby power plants, Exxaro is now eyeing the export trade with Ethiopia, Egypt and Pakistan as potential markets. Mineral beneficiation is a key component of the MMSEZ and coal is needed for manufacturing steel. The Fetakgomo-Tubatse SEZ will focus on the beneficiation of PGMs, magnetite, vanadium and chrome. Palabora Copper, a subsidiary of Palabora Mining Company, produces about 45 000 tons of copper annually, most of which is sold domestically. It runs a smelter and a refinery and mines magnetite, vermiculite, sulphuric acid and nickel sulphate. Venetia Mine. 46 | Service magazine

provincial focus S LIMPOPO’S ASSETS Largest diamond mine in South Africa: De Beers Venetia Mine Biggest copper mine in South Africa: Palabora Mining Company Vastest open-pit platinum mine in South Africa: Anglo America’s Mogalakwena and the biggest vermiculite mine in the world. The province has 41% of South Africa’s PGMs, 90% of South Africa’s red-granite resources and approximately 50% of the country’s coal reserves. Antimony, a highly strategic mineral found in large quantities in China, is another major asset. The province has projected a total investment from mining of R36.3-billion in the period to 2025. is invested in a project where the equity partner, Sedibelo, is assembling R1-billion to upgrade resources. African Rainbow Minerals (ARM) purchased the Bokoni PGM mine for R3.5-billion. Bokoni is located near ARM’s Modikwa and Two Rivers PGM mines and gives the ARM more palladium to mine. Glencore (with a 79.5% stake) and Merafe Resources jointly own chrome mines on the Eastern Limb of the Bushveld Igneous Complex (Helena, Magareng and Thorncliffe), the Lion smelter complex near Steelpoort and the Lydenburg smelter. WATER The Department of Water and Sanitation has undertaken several large infrastructure projects in Limpopo, including the raising of the Tzaneen Dam wall, Olifants River Water Resources Development, bulk water supply for the MMSEZ and the Nandoni Water Treatment Works. Supplying water for the MMSEZ is a critical issue in an area where that resource is not plentiful. Limpopo’s rivers are threatened by the damaging effects of the mining industry, power stations, chemicals used in agriculture and sewage treatment in catchment areas. Opportunities exist in this sector for innovative solutions. The water and sanitation services branch of Polokwane Municipality operates five water-purification plants and three sewage-purification plants. Polokwane provides water to the residents of the rural areas of Mothapo, Mothiba and Makotopong. The Capricorn District Municipality funds a water-testing laboratory on the University of Limpopo campus. Phase 2B of the multi-year Olifants River Water Resources Development Project is under discussion by project manager, Trans- Caledon Tunnel Authority (TCTA), which is looking at funding options with the Development Bank of Southern Africa. The project will entail building a 70km pipeline from Flag Boshielo Dam to Pruisen near Mokopane and would improve water supplies for mines and domestic users. S Implats smelter. De Beers Group started production at its Venetia Mine in 2023. The .3-billion conversion of the diamond mine to an underground one began in 2012 and will extend the life of the mine to 2045 or beyond. The mechanised underground operation will deliver up to seven-million tons of kimberlite ore per year to produce four-million carats of diamonds. Construction of the mine, which employs 4 300 local people, is now 70% complete. Langpan Mine, which reportedly has a chrome and PGM reserve statement of 2.17-million tons and a valuation of R851-million, has a processing plant which forms chrome concentrate from the ore. The by-product has a high concentration of PGMs. The R1.2-billion Sefateng chrome mine under development in the Sekhukhune District created 350 jobs during the construction phase and will provide long-term employment for 600 people once production begins. Corridor Mining Resources, wholly owned by the provincial government through the Limpopo Economic Development Agency, Premier of Limpopo, Stanley Mathabatha. Service magazine | 47

Other recent publications by Global Africa Network: