R/€ = 15.27Change: -0.25
R/$ = 14.40Change: -0.26
Au 1059.44 $/ozChange: -12.61
Pt 836.50 $/ozChange: -9.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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  
May 11, 2012

11/05/2012 (On-The-Air)

Engineering|Africa|Diesel|Engineering News|Gas|Industrial|Industrial Development Corporation|Locomotives|Mining|Mining Weekly|Platinum|Resources|South African Broadcasting Corporation|Standard Bank|Water|Africa|China|Malaysia|South Africa|Kalahari Mine|Kudumane Mine|Electricity|Product|Products|Steel|Kalahari|Robben Island|Cyril Ramaphosa|Daphne Mashile-Nkosi|Hirotaka Suzuki|Iron Ore|Iron-ore|Martin Creamer|Saki Macozoma|Sipho Pityana|Zwelakhe Sisulu|Locomotive|Renova|Engineering News|Diesel |Fuel Cells
Engineering|Africa|Diesel|Gas|Industrial|Locomotives|Mining|Platinum|Resources|Water|Africa|||Products|Steel||Iron Ore|Iron-ore||Locomotive|||
© Reuse this

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

Gwala: Yet another black-controlled manganese mine is being built in South Africa’s richly endowed Kalahari Manganese Basin.

Creamer: The normal formula for BEE and black-economic empowerment is that first 14% and the deadline was 2010 and now the 26% for 2014, but that doesn’t apply in the Kalahari, quite interestingly.

The last four start-ups there have been black-controlled, either 50% or 51%. It started off with the Kalagadi and that is really run, by black-woman you can say, led by Daphne Mashile-Nkosi.

She was in the Class of ’76 in Soweto during those riots and now doing an underground mining stint plus a sinter plant and talking about a smelter at Coega. Then Tshipi Borwa, led by Saki Macozoma, former Robben Island detainee, and, of course, deputy chairman of the Standard Bank now.

Also in control of the United Manganese of the Kalahari, although the Russians are in there with Renova at 49% and 51% is black-economic empowerment partner. Now with the first blast going for the new Kudumane Mine, a R1,5-billion mined opened this week, you see the same formula with 51% black-control.

The leading figure that pops up there is someone very familiar to the South African Broadcasting Corporation, the former SABC head Zwelakhe Sisulu. Of course, the name Sisulu resounds all around South Africa.

This is a very interesting one, because the strong partnership here with 49% in that deal is the Japanese with Hirotaka Suzuki, a very impressive individual there. His company, privately owned, already has two smelters in China and another being built in Malaysia.

He, interestingly, is talking about also putting a smelter plant, which will require a lot of electricity, inland in the Northern Cape, on site at the proposed Kalahari mine, for all the low-grade manganese. It is just interesting to see that the start-ups in the Kalahari are really black-led.

Gwala: The first major step has now been taken towards the realisation of an ambitious new South African dream – the local manufacture of fuel cells.

Creamer: We have been talking about fuel cells on this programme and how the opportunity exists and the window is wide open for hundreds and thousands of jobs to be created by creating a new industry for the manufacture of fuel cells.

Of course, Anglo Platinum, which is intricately involved, because the platinum is essential there, it is unsubstitutable in these fuel cells, so they are very keen to get this going. That is why we see that this week they launched their own fuel-cell powered locomotive.

We haven’t seen that in South Africa where the locomotives are usually battery driven or diesel driven, now fuel-cell driven. This could be the start of the demand build up. We have always been saying that the fuel cells could be the new engine of our cars.

That has been slow in coming, but if they can do things with locomotives… and why have them there, because they are environmentally friendly. This creates electricity from the hydrogen gas the only by-product is water, which is very benign.

It is very much part of the green economy, this low-carbon world that we are entering into. South Africa, because of the background with having the lion’s share of platinum, as we’ve said before, could be a front-runner here and we see that already there are moves with Anglo Platinum leading the way, by using these fuel cells for locomotion, the first being tested this week and more to follow.

There are multiplicity of products that could use fuel cells and South Africa could well get in on the ground floor here.

Gwala: The State is back in steel thanks to the Scaw deal. This is interesting, because the State has been wanting to get back here for a while.

Creamer: Anglo American, the former owner of Scaw Metals in Germiston, a long-standing steel product producer, has now done a deal with the State-owned Industrial Development Corporation (IDC), a R3,4-billion deal, where they are leading new ownership of this very important resource in steel production.

It is possibly also very transformational because we can see the partners there Shanduka Resources Cyril Ramaphosa and also Sipho Pityana with the Izingwe Holdings, so there is a strong BEE element and there probably is going to be a strong transformational element there. We see this being led by the IDC and that could be significant.

They haven’t spelt out exactly what their intentions are or whether this is linked to the Department of Trade and Industries’ ambition to make sure that we get a very developmental steel price, that is still to come out. In the meantime, the competition authorities are going to still have to approve this deal. We can throw our minds back to the time when steel was a State industry here.

It was Iscor and how that got unbundled and when it did get unbundled in 2001 there was a cost-plus-three percent charge for the iron-ore going from Kumba to ArcelorMittal. ArcelorMittal never quite met its obligation, because they were supposed to get us a developmental steel price, because they were getting developmentally priced iron-ore.

That never happened and we know that there have been court cases and all sorts of things around that. Perhaps there could be some sort of link drawn here and this new Scaw deal could play a role, but we can’t see anything yet.

Gwala: 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
Latest News
Updated 4 hours ago French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
Updated 4 hours ago A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
Updated 4 hours ago The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
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