16 INVESTMENT
16 INVESTMENT OPPORTUNITY : NORTHERN CAPE BOEGOE BAAI SPECIAL ECONOMIC ZONE The GH2 hub of Western SADC PROJECT BACKGROUND PROJECT BACKGROUND Green hydrogen has many downstream and upstream applications Green hydrogen has many downstream uses that could contribute to that contribute to the creation of new industries in the Northern the creation of new industries in the Northern Cape and enable the Cape and enable the industrialisation of industries nationally and industrialisation in SADC. of industries nationally. There is also a potentially lucrative global export market where demand There is is a growing lucrative rapidly. global The export province and local boasts market several where competitive demand advantages is growing for rapidly the production to supply the of green hard-to-abate hydrogen. sector. The province • boasts High renewable several competitive energy potential advantages and to established be a green RE hydrogen industrylead: • Less High complex renewable topography energy potential and established RE industry • 300km Less complex of shoreline topography • Large 300km mineral of shoreline deposits • International Large mineral accessibility deposits • International accessibility PROJECT LOCATION Boegoebaai PROJECT LOCATION is approximately 60km north of Port Nolloth and Boegoebaai is approximately 60km north of Port Nolloth and 20km 20km south of the border between Namibia and South Africa in the south of the border between Namibia and South Africa in the Richtersveld Local Municipality area. Richtersveld Local Municipality area. PROJECT DESCRIPTION PROJECT DESCRIPTION The Boegoeberg Special Economic Zone is envisaged as a hub for The Boegoebaai Special Economic Zone is envisaged as a hub for the the production production and and export export of green of green hydrogen. hydrogen. The SEZ will also support the components sector and allow for value addition to minerals, using this green energy. The project is of strategic importance and will enable the overarching The project is of strategic importance to our country and will attainment of a Just Energy Transition. enable the overarching attainment of a Just Energy Transition Process. PROJECT PROGRESS • PROJECT Sasol has PROGRESS completed the prefeasibility phase of the green hydrogen • and Sasol renewable has completed energy facility. the pre-feasibility phase of the green • Evaluation hydrogen of and port renewable and rail energy quotation components. process is complete and • Transnet management has advanced is assessing to identify approval the final for location port location and and successful issued the bidders. RFQ towards an RFP for the construction of the • The Boegoebaai draft master port. plan has been developed and initial engagements • with The various Northern stakeholders Cape Green (public Hydrogen and private) Master has commenced. Plan was • Agreement launched for at SAGHS land access and COP28, has been providing signed the between clear pathway Northern Cape for Economic development. Development Agency (NCEDA) and the Community • Property The proposed Association Boegoebaai (CPA) as well SEZ as concept NCEDA and Sasol. preliminary • Completed infrastructure prefeasibility plan has designs been concluded. for the SEZ infrastructure. • SANRAL has approved plans to upgrade the R382 road to Sanral has approved plans to upgrade R382 road. the port and SEZ. • A fuel-bunkering concept study has been completed and will be • A key component of the Boegoebai SEZ and electrolyser published. deployment entails the production of electrons that will • Masts are to be erected for wind, bat and bird studies. supplement the grid and supply the electrolyser complex. • Strategic Environmental Assessment (SEA) for port and SEZ to be • A regional Strategic Environmental Assessment (SEA) for issued the port, to market. SEZ and renewable energy of over 40 000 hectares is currently underway to gauge the regional impact of the project.
19 INVESTMENT OPPORTUNITY : NORTHERN CAPE NAMAKWA SPECIAL ECONOMIC ZONE National Cabinet has approved the intention to designate the Namakwa National Cabinet SEZ has Aggeneys approved in the designation Northern Cape. of the The Namakwa proposed SEZ designation in Aggeneys is in done the Northern in terms Cape. of the The Special proposed Economic designation Zones is done Act, 2014 in terms (Act 16 of the of 2014) Special and Economic the proposed Zones SEZ Act, is 2014 part of (Act the 16 Presidential of 2014) Investment INVESTMENT and the proposed Drive. OPPORTUNITY SEZ is part of the Presidential Investment Drive. • • The Namakwa SEZ will will unlock unlock mining mining beneficiation, the production production of green of green hydrogen, hydrogen, infrastructure development, renewable energy and agro-processing. and • More than R29-billion in investments has already been committed • More than National Cabinet has in investments approved the has designation already of been the Namakwa committed SEZ for phase for phase in Aggeneys one of the one of the in SEZ. the SEZ. Northern These include These include Cape. The commitments commitments proposed designation from Vedanta from Vedanta is done Zinc, Frontier Zinc (R16-billion), in terms Rare of the Earths, Frontier Special Hive Economic Energy Rare Earth Zones and RRS (R13-billion), Act, Trade 2014 and (Act Investment. Hive 16 of Energy 2014) and the proposed SEZ is part of the Presidential Investment Drive. (R200-million) and RRS Trade and Investment (R100-million). MISSION • The Namakwa SEZ will unlock mining beneficiation, production of Create an industrial green hydrogen, hub for infrastructure the West development, Coast and renewable a catalyst energy for MISSION industrialising and the agro-processing. western SADC area. Create an • More industrial than R29-billion hub for in the investments West Coast has already and a been catalyst committed for industrialising for phase the western one of the SADC SEZ. area. These include commitments from Vedanta PROJECT LOCATION Zinc (R16-billion), Frontier Rare Earth (R13-billion), Hive Energy Aggeneys is 66km from Pofadder and 110km from Springbok and in PROJECT (R200-million) LOCATION and RRS Trade and Investment (R100-million). the regional network of the Boegoebaai harbour. Aggeneys is 66km from Pofadder and 110km from Springbok. MISSION ECONOMIC Create IMPACT an industrial hub for the West Coast and a catalyst for ECONOMIC IMPACT Operations industrialising will add R1.1-billion the western SADC to area. state tax revenue annually. • Operations will add R1.1-billion to state tax revenue annually A proposed smelter is to be built to treat zinc concentrate at Gamsberg • Opex will PROJECT and add R5.8-billion LOCATION to process to additional national GDP sulphuric annually acid for further downstream • Capex will Aggeneys industrialisation. add R6.7-billion is 66km from in Pofadder The one-off and zinc concentrate value 110km to GDP from Springbok. produced at the existing • Capex concentrator will add R1.6-billion plant will in one-off be treated value in to the tax smelter revenue ECONOMIC IMPACT using the conventional • Operations roast-leach-electrowinning will add R1.1-billion to (R-L-E) state tax process. revenue annually VALUE PROPOSITION • Opex will add R5.8-billion to national GDP annually TARGETED The value • proposition SECTORS Capex will add of R6.7-billion the Namakwa in one-off SEZ is value based to GDP on the existence • of Mining the Gamsberg • Capex will Zinc add Mine R1.6-billion and the in proposed one-off value building to tax of revenue a smelter by Zinc, Vedanta granite, Zinc copper, International. rare earths, These rare would quartz, be the slateanchor tenants of the VALUE PROPOSITION • Mineral processing The value proposition of the Namakwa SEZ is based on the existence Zinc processing of the Gamsberg plant, zinc Zinc smelter, Mine and copper the proposed processing building plant of a smelter by • Petro-chemical Vedanta Zinc International. These would be the anchor tenants of the Sulphuric acid, fertiliser, paint, hydrogen production, explosives NAMAKWA SPECIAL ECONOMIC ZONE 19 • Manufacturing SEZ. Super It alloys, is proposed batteries, that galvanising a smelter be steel built to treat zinc concentrate produced • Transport at Gamsberg. The zinc concentrate produced at the existing Mining and concentrator agricultural, plant regional will be and treated depots in the smelter using the • conventional Engineering roast-leach-electrowinning and suppliers (R-L-E) process. Renewable energy, transport, construction • Pharmaceuticals TARGETED SECTORS Zinc, food additives • Mining • Localisation and supplier development SEZ. Zinc, It is granite, proposed copper, that a smelter rare earths, be built rare to treat quartz, zinc concentrate slate produced Incubator, • Mineral at skills processing Gamsberg. development The zinc concentrate produced at the existing Zinc processing concentrator plant, will zinc be smelter, treated in copper the smelter processing using the plant conventional BENEFITSroast-leach-electrowinning (R-L-E) process. • Petro-chemical Products of the Northern Cape previously had to be transported Sulphuric acid, fertiliser, paint, hydrogen production, explosives TARGETED over great SECTORS distances by rail or road. • Manufacturing • Mining Beneficiated products from the mining industry will be exported Zinc, Super granite, alloys, copper, batteries, rare earths, galvanising rare quartz, steel slate • Opex will add R5.8-billion to national GDP annually • Mineral Transport processing • Capex will add R6.7-billion in one-off value to GDP Zinc Mining processing and agricultural, plant, zinc smelter, regional copper and processing depots plant •• During construction, 9 500 jobs will be created Petro-chemical Engineering and suppliers • Sulphuric Jointly acid, with fertiliser, the Boegoebaai paint, hydrogen SEZ, production, about 3 explosives 250 products such Renewable energy, transport, construction • Manufacturing as green ammonia will be produced Pharmaceuticals • Super The alloys, SEZ batteries, is aligned galvanising to the steel Gamsberg Zinc Mine and the • Transport Zinc, food additives proposed building of a smelter near the Zone and is being • Mining Localisation and agricultural, and supplier regional development and depots developed along strict project management guidelines • Engineering Incubator, and skills suppliers development Renewable energy, transport, construction • VALUE Pharmaceuticals PROPOSITION EXTENT The Zinc, value food additives proposition of the Namakwa SEZ is based on the • 540.26 relationship Localisation hectares and that supplier such a development Special Economic Zone will have with up and Incubator, downstream skills development economic activities to boost industrialisation and JOBS to supply and add value to regional produce and consumer goods. EXTENT During construction, 9 500 jobs will be created with about 3 250 540.26 permanent hectares The close jobs vicinity once the to zone both is fully Namibia operational. and Boegoebaai is JOBS a tremendous benefit and competitive advantage. The During proximity construction, to mining 9 500 and jobs agricultural will be created sector with about activities 3 250 and the permanent short distance jobs once from the zone coast is to fully deep operational. water further enhances the value proposition.
