Dec 04, 2009
GABORONE|Johannesburg|Mumbai|TEL-AVIV|Engineering News|Eskom|Mining Weekly|South Africa|ZAR|Grootegeluk Coal Mine|Kolomela Mine|Medupi Power Station|Sishen Mine|Northern Cape|Martin Creamer|Tim Modise|Engineering News
© Reuse this
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© Reuse this Comment Guidelines
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...