http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.06Change: 0.05
R/$ = 11.97Change: -0.03
Au 1195.15 $/ozChange: -12.10
Pt 1135.50 $/ozChange: -13.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 08, 2011

08/07/2011 (On-The-Air)

Back
safmpod_8072011
 
 
 
Engineering|Expertise|Gold|Port|Africa|Bateman|Building|CoAL|Eskom|Export|Mining|PROJECT|rail|Resources|Road|Transnet|Africa|Democratic Republic Of Congo|Contracting|Energy|Logistics|Steel|Diamonds|Infrastructure|Power
Engineering|Expertise|Gold|Port|Africa|Bateman|Building|CoAL|Eskom|Export|Mining|PROJECT|rail|Resources|Road|Transnet|Africa|Democratic Republic Of Congo|Contracting|Energy|Logistics|Steel|Diamonds|Infrastructure|Power
engineering|expertise|gold|port|africa-company|bateman|building|coal|eskom|export|mining|project|rail|resources|road|transnet|africa|democratic-republic-of-congo|contracting|energy|logistics|steel|diamonds|infrastructure|power
© Reuse this



Every Friday morning, SAfm’s AMLive’s radio anchor Gillian De Gouveia speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

De Gouveia: We see manganese is making news, tell us a bit about that and the South African link.

Creamer: This manganese is a hardy annual. We have got 80 % of the world reserves and only 15 % of the market. That is a mismatch and we are loosing out. Our opportunity loss is huge. It is all around discussing logistics, rail, which way is it going to go.

We are only exporting about 4-million tons at the moment, and we want to go to 12-million or 16-million tons. There is scope for that in the market, there is big demand for steel in which this manganese is used. There is an outlook of growing demand, so we should be doing something, but we continue to discuss the rail.

This is not getting us anywhere. Now, the debate is hotting up as to whether we should go to the deep-level Coega Port or whether we should go to Saldanha. The industry seems to favour Saldanha, Transnet, as a new voice now back with the newly reinstated Siyabonga Gama, seems to favour Coega.

So we are back to where we started and we are losing time on this. I would say that what South Africa actually needs is a good decision of which way it is going go, because the manganese story is becoming the saddest mining story that we’ve got.

We don’t really add value to it, but perhaps if we go the Coega route there could be some value addition with a ferromanganese smelter at the Coega port, but we need a heavy haul-line there. I think the Western Cape is as anxious in its new IDZ to get it at Saldanha, so the fight is on, but who is going to win it we don’t know.

De Gouveia: Moving from the sad news to what I suppose would be good news or happy news in terms of South Africa’s gold and diamond mining.

Creamer: Yes, we’ve got some fantastic expertise in gold and diamond mining and we should take it into Africa, because a lot of the times the Australians and Canadians beat us at that. But, one person who hasn’t been beaten at all is Dr Mark Bristow from Randgold Resources, which is listed on the London Stock Exchange.

We can remember well how he formed it here in the mid-90s in Selby, down the road from Johannesburg. He has built three gold mines in Africa already. He built Marula, which was a starting point and became a golden gorilla really in Mali, then in Loulo.

He went into Tongon at the height of the war and never missed a beat there. He read that political situation so well. And now, right into the Congo, he is going to build the biggest one ever. That is the Kibali mine, which is a R10-billion investment. It is going to be as big as our Blyvooruitsig mine.

We are talking about a big gold mine. That is the gold story from the South Africans. Also, South Africans are becoming very involved in this diamond mine in Sierra Leone, the Koidu expansion. Again, a billion rand project and even companies like Botes and Kennedy, a small company from the Northern Cape, involved in civil engineering and contracting.

They are up there doing work that is developed by Benny Steinmetz who has got contacts in South Africa and currently owns the Bateman group. That group also does a lot of beneficiation of diamonds in South Africa. So, again, South African involvement in Sierra Leone and also in the Democratic Republic of Congo with gold.

De Gouveia: While we are on the topic of other African countries, lets take a look at Botswana. Do you think at some point that it is going to grow into a new regional energy hub?

Creamer: You know, we associate Botswana with diamonds. That country has been too connected to diamonds and it knows it’s got to diversify. Now we see a new dawn glimmering and it is around coal and coal gas and even sun. It is fantastic to see the entrepreneurial energy that is being spent there as these young foreign investors come in, particularly from the Australian side, listed on the Australian Stock Exchange and turning the coal opportunity to account and firming up how much coal is there.

At 212-billion tons of coal there, there is a lot of energy possibility and with India now importing lower-grade coal it is opening up a new paradigm. There is some very exciting thinking from our own Exxaro, listed on the Johannesburg Stock Exchange, and they are talking about a combined base-load station that will involve solar power and it will also involve coal-gas.

So, not the coal exactly, but coal-bed-methane, where there is a lot of coal-bed-methane natural gas in Botswana. He is saying that, the protagonist of this project from Exxaro, that we could have the generation in the day of solar power and at night we could use this natural gas, which is the carbon-bed-methane, so you lower your carbon footprint dramatically and you are able to export this electricity into the region.

We know that Botswana is poised now to become, possibly in the future, a net exporter of the electricity into the region and the region needs that. If the government can get its infrastructure right and it needs that Trans Kalahari line Beira and possibly Maputo.

If you can get that plus its energy and we can see it building up its power grid there, the transmission line development is coming through plus new power stations, Botswana could become the energy jewel of the Southern African Development Community.

De Gouveia: Would or could South Africa benefit in a tangible way from this?

Creamer: Well, South Africa spurned their offerings so far. We see a lot of people that have come across just close to the border of South Africa and said we will give you energy over the fence, but it is the price at which we want to sell it that becomes a negotiating point with Eskom and, so far, Eskom has moved away from these independent power producers.

They are convinced that there will be a time that this region is going to be short of energy, is going to be crying out for that energy from them. So they are not only looking at exporting the coal, but they are also looking at power station potential. Even Sasol-type coal-to-liquids opportunities.

De Gouveia: 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 (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
Updated 8 minutes ago The country's biggest local government budget of R52.6-billion was tabled on Tuesday by the City of Johannesburg’s member of the Mayoral Committee for Finance‚ Geoffrey Makhubo‚ with a focus on capital expenditure‚ housing and youth employment. Makhubo presented his...
AECI CEO Mark Dytor
Updated 43 minutes ago South African chemicals group AECI has entered into an agreement to acquire Southern Canned Products (SCP) for an undisclosed amount, complementing its Lake Foods division and its strategy to grow its Food Additives and Ingredients business in South Africa and,...
Reserve Bank deputy governor Kuben Naidoo
Updated 51 minutes ago South Africa's central bank deputy governor said on Tuesday there was "high likelihood" of interest hikes at its next few meetings. "(There's a) high likelihood of us hiking interest rates in the next few meetings," Kuben Naidoo told reporters.
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96