Dec 04, 2009
Engineering|GABORONE|Johannesburg|Mumbai|TEL-AVIV|Africa|CoAL|Engineering News|Eskom|Housing|Industrial|Mining Weekly|Pipe|Transnet|Water|Africa|South Africa|ZAR|Grootegeluk Coal Mine|Kolomela Mine|Medupi Power Station|Sishen Mine|Mining|Northern Cape|Iron Ore|Martin Creamer|Power|Rail|Tim Modise|Water|Pipe|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
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...