Dec 04, 2009
Modise: A brand new iron-ore mine is giving South Africa's Northern Cape a multi-billion-rand boost.
Creamer: The new Kolomela mine is coming into action in the Northern Cape, which is being done by Kumba Iron Ore, close to Posmasburg. You can see, with the R8,5-billion being injected in there, what it is doing to the area.
This mine will produce about nine-million tons of iron-ore from the first half of 2012 and every last ton will be sold on the export market. The State-owned Transnet is setting up the rail spur there so that they can link to the big Sishen-Saldanha line. Of course, Kolomela is close to the big Sishen mine about 70 km away.
This will be a mine with three separate pits that will be developed there and one of the things they found as they start working on the mine there is that not very deep is a lot of water, which is quite surprising when one is in such a dry area.
But, there is a lot of water there and they are going to make sure that this is not lost and they are already starting to pipe it into the surrounding towns and offering it to farmers. So a lot of spin-offs there from the new Kolomela iron-ore mine in the Northern Cape.
Modise: Massive investment is earmarked for South Africa's coal-rich Waterberg region.
Creamer: Yes, the Waterberg region is really buzzing. You can imagine R124-billion going into Medupi power station alone. Then the coal mines that have to supply that now, the Grootegeluk coal mine being expanded at R9-billion in order to bring in that 14-million tons into the new proposed power station already supplying a big existing power station there.
So, plans for additional coal mines, this is a coal area and a lot is going to be around the carbon economy there. You can see that they are just waiting for the announcement for the new independent power producers and we heard Eskom talking about it this week.
This announcement is going to come through next year and once that does these operations are just on standby to create more mines there and then there will be another ten-billion-rand investors there. Sasol is there wanting to create the big Mafutha, which will be many more billions. So where ever we look there is value added to coal.
We see a new char plant going up and we see also other value added coal related activities and the big thing that is visible is housing, there is a lot of housing development going on there.
Modise: South Africa's struggling diamond industry is demanding a new deal from government.
Creamer: These days when people call for a town hall meeting then you that there are problems. The diamond industry had a town hall meeting in Johannesburg at which the miners, manufacturers and marketers all got together and there was a lot of town hall toughness and robust talking about the difficulties the industry was hit by the global meltdown.
But one of the big complaints was around South Africa's regulatory framework. They are not happy with the way the regulations after regulation after regulation effecting the diamond industry.
They want to do what is best for South Africa, but they want to speak to government at the highest level to make sure that they are on an equal footing, South Africa's diamond industry, with the other diamond industries in the world. We know that there have also been town hall meetings in Tel-Aviv, Mumbai and Gaborone.
So the diamond industry is in a mood of coming through with a renaissance at the moment and they want to, once they have gathered their case, to put it to government and look to possibly creating, at the jewellery centre in Johannesburg, a hybrid industrial development zone that will give them equal competiveness with the rest of the diamond industry around the world. This they want to bring into action next year.
Modise: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he'll be back with us at the same time next week.
Edited by: Creamer Media Reporter
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Updated 3 hours ago Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO. “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Updated 4 hours ago The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12. Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Updated 4 hours ago Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...