http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.24Change: -0.04
R/$ = 14.25Change: 0.04
Au 1275.51 $/ozChange: 11.24
Pt 1060.00 $/ozChange: 14.00
 
 
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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 08, 2011

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

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



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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
Updated 3 minutes ago One of the key messages to emerge ahead of the review of South Africa’s sovereign credit rating is that the country needs to outline the practical actions it will take to reignite growth, which has more or less petered out in recent years, with few expecting the...
In an attempt to maintain a pro-poor stance on public spending aimed at improving social development, the City of Ekurhuleni will inject R3.5-billion of its 2016 budget for into its community empowerment package, Mintirho Ya Vula Vula. Tabling the budget vote for the...
More
 
 
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
Updated 7 hours ago 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...
Updated 7 hours ago 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,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Updated 7 hours ago 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...
Updated 7 hours ago 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...
Updated 7 hours ago 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...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149