http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.83Change: -0.12
R/$ = 11.04Change: -0.17
Au 1172.85 $/ozChange: 3.68
Pt 1231.00 $/ozChange: -0.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 18, 2011

18/03/2011 (On-The-Air)

Back
polsafm_18032011
Engineering|Johannesburg|London|SYDNEY|Africa|CoAL|Engineering News|Gem Diamonds|Mining Weekly|PROJECT|Projects|Africa|Australia|Botswana|Canada|China|Lesotho|Malawi|Namibia|South Africa|Tanzania|USD|ZAR|Letšeng Mine|Makhado Mine|Energy|Mining|Normal Energy Coal|Diamonds|Caesar Molebatsi|Clifford Elphick|Harry Oppenheimer|Martin Creamer|Power|Queensland|Engineering News
Engineering||Africa|CoAL|PROJECT|Projects|Africa|Tanzania|||Energy|Mining||Diamonds|Power||
engineering|johannesburg|london|sydney|africa-company|coal|engineering-news|gem-diamonds|mining-weekly-company|project|projects|africa|australia-country|botswana|canada|china|lesotho|malawi|namibia|south-africa|tanzania|usd|zar|leteng-mine|makhado-mine|energy|mining|normal-energy-coal|diamonds|caesar-molebatsi|clifford-elphick|harry-oppenheimer|martin-creamer|power|queensland|engineering-news-published-medium
© Reuse this



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

Molebatsi: Investors are planning to plough R4-billion into a new coal mine in the impoverished Limpopo.

Creamer: Again, it’s coking coal that they are looking at and again it’s the same company that did Vele and was stopped. That is the company that is listed in London, Sydney and also listed in Johannesburg and it is Coal of Africa (CoAL). They’ve still got the appetite to go ahead.

This time they are looking at the Makhado mine, which will take an investment of between $500-million to $600-million, so we are looking at well between R3,5-billion to R4-billion. That is for coking coal in an area that really needs some wealth creation and needs jobs. We see what’s happened to Queensland in Australia where it is underpinned by coking coal. That really is a very strongly founded province financially.

Limpopo can really do with this. We saw with Vele that the government actually stopped CoAL’s previous mine. It is still stopped and they are actually hoping to let it go ahead, but in the meantime the company has brought in Unesco and it showed them that they can rehabilitate while they mine and that there can be a win-win situation.

So they are still confident of that. One looks to areas where mining has been stopped, like I went to Richards Bay Minerals the other day and saw how well they rehabilitate there. There is modern rehabilitation techniques, they bring back the biodiversity to a fantastic extent.

Molebatsi: Sometimes even a better condition.

Creamer: Yes, its sometimes better. We saw them stopped in St Lucia and that St Lucia area is still not mined. They were stopped by environmentalists who said ‘no we will bring ecotourism’, but there is still no ecotourism. So it’s a lose-lose, rather have a win-win situation, especially with coking coal the hard coking coal fetches more then double the price of normal energy coal.

Molebatsi: How soon will that project come on for Makhado?

Creamer: Well, they are looking to getting a go ahead in early January 2012 and then starting to mine 18 months later, which will be mid-2013.

Molebatsi: London investors have approved a multi-billion rand capital expenditure on Southern African diamond projects, one a brand new mine.

Creamer: Again, a moderately sized company, Gem Diamonds, listed in London and run by Clifford Elphick. He knows the scene because he worked for the late, great Harry Oppenheimer and was close to De Beers. He now formed his own operation Gem Diamonds.

They are coming in with R2,3-billion worth of growth investments in diamonds now. We can see diamonds recovering and it is in Southern Africa, not quite South Africa. There is a brand new mine, Gope in Botswana, which is going to start.

There is also sensitivity around the National Park, they won’t have an opencast-mine, they will go underground to deal with that sensitivity and work in a phased manner. That’s why the first investment will only be about R600-million. But they are also looking to growth capital coming in to Lesotho where they have got the Letseng mine.

The government of Lesotho owns 30 % of that mine and they are going to plough R1,7-billion into growth capital at Letseng, where they get very big diamonds, way above average. It is the highest diamond mine in the world, because it is up in the Mountain Kingdom. Also, highest value diamonds, way above average and so they are very keen to plough more money into that Letseng diamond mine, as well.

Molebatsi: Explorers are turning their attention to Africa as the price of rare-earth elements continues to soar.

Creamer: Well, when we say soar I mean you look at just one of those 15 rare-earth elements, Samarium, in the last 12-months its price has gone up by 1 256 % and it is still rising. So, we have these 15 rare-earth elements suddenly in huge demand, because they go into all the modcons, they go into all the high-tech elements.

We are talking wind power, solar power, iPads, renewable batters, these are the sort of things that use the 15 rare-earth elements. China, because they saw the demand for these – they are the 97 % world suppliers – they cut their exports by 40 % and then by a further 35 % so people have run around trying to find rare earths and we are now getting, possibly our second mine in South Africa.

We know that Steenkampskraal in the Western Cape, mainly a monzanite mine, will be coming through in 2013. Now there is a Frontier Rare Earths listed in Canada, which is looking at a possible Zandkopsdrift mine, that is in our wild flower area, in Namaqualand. Talking about 2015 coming in with rare-earth.

There is another company that is about to list in Canada, Namibia Rare Earths coming in to Lofdal in Namibia and people running around Tanzania and also Malawi for rare-earths, the prices of which are really doing well.

Molebatsi: 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
The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
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.
 
 
 
 
 
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect 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