http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.14Change: -0.24
R/$ = 13.47Change: -0.20
Au 1138.35 $/ozChange: -2.70
Pt 1012.00 $/ozChange: 4.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 24, 2011

25/03/2011 (On-The-Air)

Back
polsafm_25032011
 
 
 
Engineering|Port|Africa|CoAL|Industrial|Mining|Platinum|Ports|Projects|rail|Training|Transnet|Africa|Energy|Logistics|Steel|Iron Ore|Iron-ore
Engineering|Port|Africa|CoAL|Industrial|Mining|Platinum|Ports|Projects|rail|Training|Transnet|Africa|Energy|Logistics|Steel|Iron Ore|Iron-ore
engineering|port|africa-company|coal|industrial|mining|platinum|ports|projects|rail|training|transnet|africa|energy|logistics|steel|iron-ore|iron-ore-person
© Reuse this



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

Presslin: The Russians have ploughed R1,5-billion into a new black-controlled manganese mine in the Northern Cape.

Creamer: That’s right. The Northern Cape is known for its manganese. The Russians have come in quite astutely, because they got the shallow manganese. Traditionally they mine underground there and they’ve got the surface mining and they have been able to partly self-fund this by actually mining quickly and selling manganese quickly so that they could get a revenue stream.

We are talking about a R1,2-billion mine here, which is black controlled. The 51 % is held by a black company, which is very broad-based and also backed by the Industrial Development Corporation.

One of the things that was pointed out there by the Minister Susan Shabangu when she opened this is that there is a lamentable situation that South Africa has got 80 % of the world’s known high-grade manganese reserves, but only 15 % of the market. So, this presents a huge opportunity.

We have been rail constrained and obviously the rail will have to play a huge part here to get us going, but also we can see that there is a lot more focus on it, because of the demand for steel in the world. This manganese is an essential ingredient in steel and therefore it has a good future going forward and it gives confidence to investors to come in and plough their money in.

Presslin: Foreign investors have provided R4-billion in funding for Bakgatla community’s platinum mine in the North West.

Creamer: Again, confidence by foreign investors. We see R4-billion coming in to this moderately sized mine in the North West Province and a lot of it coming in even from pension funds from Europe. So, it shows you that confidence. The Bakgatla community there is determined to try and turn some of their positive assets to account.

We see them approaching it in the correct way. We know that this is the Platmin operation, but nearby was Wesizwe, which is being rescued by Chinese investors now. The local community collateralised the shareholding before one ounce of platinum was produced, they cashed in their shares.

That money is dissipated now, where as the Bakgatla is saying now that every bit of cash we get we ploughing back into this investment, because we want sustainability and long-term. That is the way to do it and they have also set up an academy of training where they are bringing out apprenticeships and they are bringing tradesman into the mine.

So, the big advantage here is that there are no hostels in site, because a lot of the community members of this 1 050 people work at that mine and go home at night to their families.

A much better situation there and it has been master minded, of course, by an icon of the mining industry, which is Brian Gilbertson who is the chairperson of Pallinghurst, one of the big investors here in Platmin also listed in Toronto.

So the funding has been there, the geology has been challenging, but they’ve gotten over this now with a new deal they’ve just done to double their resource and their horizon is now of positive view.

Presslin: Wonderful job creation and much needed projects in these two areas in the Northern Cape and North West.

Transnet plans to spend R110-billion on much-needed rail, port and pipeline projects.

Creamer: We have got constraints here and these are the logistics. We know that the State handles those. We have also, of course, got energy constraints and the State also handles those. So, the State has got to come to the party if they want growth, if they want to generate wealth and if they want jobs, they have got to come to the party.

Here we see Transnet now belatedly talking about R100-billion wanting to modernise the ports. Pier two in Durban, if you are kind you’ll say its aged, if you are realistic you’ll say it’s obsolete. I mean, this is not the sort of thing we should have in our biggest port and they need to plough some money into that.

The bulk of the money, about R63-billion, will go into the Transnet Freight Rail, because rail is a constraint. They want to put about R11-billion into the iron-ore line, which the manganese we were just talking about, they need to augment that, also, the coal line about R16-billion.

This is the situation now where a lot of modernisation is needed, a lot of quick decisions, but right decisions. We can’t be affording to take the wrong decision. I think there has been a time to plan this too long in the planning, now we need the implementation in order to turn this to account.

We see a new broom sweeping at Transnet, Brian Molefe, a lot falls on his shoulders now to make sure that we do these things in an accelerated manner, but we do them correctly and he is talking about a massive expenditure of R110-billion.

Presslin: 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
South Africans once mighty gold mining companies are preparing for worst-case scenarios. A major effort is being made to get cargo off the roads and back on to rail using a new app. The full weight of legislation is being thrown behind South Africa’s new...
More
 
 
Latest News
Frost & Sullivan ICT programme manager Gareth Mellon
Updated 4 minutes ago It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
Updated 59 minutes ago International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
Updated 1 hour ago Beyond delivering solid results for the 2015 financial year, RCL Foods believes its recent acquisitions and restructuring of the business have led to a stronger, more diversified business that is geared for growth. The food business posted a “pleasing operating and...
More
 
 
Recent Research Reports
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,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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