Musina-Makhado Special Economic Zone Energy and Metallurgical Cluster, South Africa – update

26th February 2021 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Musina-Makhado Special Economic Zone Energy and Metallurgical Cluster, South Africa – update

Name of the Project
Musina-Makhado Special Economic Zone (MMSEZ) Energy and Metallurgical Cluster.

Location
Limpopo, South Africa.

Project Owner/s
Limpopo Department of Economic Development, Environment and Tourism.

Project Description
The project involves the establishment of an energy and metallurgical industrial park in the MMSEZ.

The SEZ programme is one of the initiatives identified by the South Africa government through the Industrial Policy Action Plan (IPAP) to boost the country’s industrialisation and manufacturing capacity.

The industrial park will include the power, coking, ferrochrome, ferromanganese, ferrosilicon, pig iron metallurgy, lime, steel and stainless steel plants.

Potential Job Creation
The project is expected to create about 22 000 jobs.

Capital Expenditure
A consortium, led by Hong Kong Mining Exchange, will invest more than R40-billion in the park.

Planned Start/End Date
The projects will be implemented over five years.

Latest Developments
The MMSEZ submitted the final environmental-impact assessment (EIA) application report to the legally designated competent authority, the Limpopo Economic Development, Environment and Tourism Department, on February 1.

The EIA application started in 2018 with a detailed environmental screening study and was followed by a scoping report in 2019.

“The scoping report identified a myriad of specialist studies to be conducted and we are pleased that, in our endeavour to comply with the law, protect the environment and positively respond to the concerns raised by the public, we commissioned even more studies beyond the scope demanded by the competent authority.

“We are delighted that this process has created an opportunity to identify potential blind spots and missing links for the success of the project and the realisation of sustainable development,” MMSEZ CEO Lehlohonolo Masoga has said.

He has noted that the SEZ is committed to sustainable development.

Similarly, it takes into account the reality of the water situation confronting South Africa and Limpopo, in particular, and that there is a shortage of water to support mega-industrial initiatives such as the envisaged MMSEZ.

Accordingly, the MMSEZ, as a catalytic initiative, has created a considerable opportunity for the Limpopo government to provide a sustainable long-term solution for the water problems in the province.

Investigations are under way for the development of a new Musina dam on the confluence of the Limpopo and Sand rivers.

Preliminary outcomes indicate that the initiative is technically sound and commercially viable.

Against this background, the MMSEZ has concluded a partnership with Infrastructure South Africa, which is part of the Presidency, and the Development Bank of Southern Africa to bring the water project to fruition.

“Ultimately, the goal of this pioneering project is the provision of a sustainable water supply not only for the MMSEZ, but for the multitude of residents of Limpopo,” Masoga has said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Limpopo Department of Economic Development, Environment and Tourism media liaison officer Burckels Napo, tel +2715 293 8526, fax +2715 293 8317 or email NapoSB@ledet.gov.za.