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IDC looking to establish soda ash manufacturing plant in SA

7th March 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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The Industrial Development Corporation (IDC) has issued a request for proposals (RfP) to conduct a prefeasibility study (PFS) on the establishment of a soda ash, or sodium carbonate, manufacturing plant in South Africa.

Soda ash is used in a number of manufacturing processes and, while the production of natural soda ash is largely dependent on trona ore reserves, present in Wyoming, in the US, synthetic soda ash is preferred over natural soda owing to its superior quality and reserve independence.

“Prior to 1965, all the world’s soda ash was produced synthetically. The intervention of natural soda ash resulted from the discovery of natural resources. “Currently, with the depletion of natural resources and the increasing demand for soda ash, the synthetic manufacturing process is gaining popularity again,” the IDC states in the tender documents.

Currently, South Africa imports all of its soda ash, which is consumed in large quantities by major companies, as it is a key component in the manufacturing of glass, detergents and other chemicals.

According to a report by international metals and minerals research company Roskill, South Africa consumed about 357 000 t/y of soda ash in 2009.

Based on this estimated consumption, the rand value of imported soda ash amounts to R1.5-billion a year, the IDC says.

Therefore, there would be significant advantages associated with establishing a local plant.

These include close proximity to local consumers, the potential of including black economic-empowerment (BEE) partners – which would favour BEE procurement policies of local consumers – transport cost savings on imported material, reduced wastage on imports and compromised quality, the IDC states.

The closing date for bids to be submitted to the IDC for the RfP on the development of a local plant was March 4, while the successful bidder will be expected to start conducting the study immediately after the tender has been awarded. The study would need to be completed in three months.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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