KwaZulu-Natal Business 2016-17 edition
The 2016-17 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province in South Africa. The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.
The 2016-17 edition of KwaZulu-Natal Business is the eighth issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide to the KwaZulu-Natal province in South Africa.
The province is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content can also be viewed online at www.kwazulunatalbusiness.co.za.
Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our other business-to-business titles that cover all nine provinces, complemented by our flagship publication, South African Business.
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OVERVIEW<br />
Mining<br />
The rich mineral sands of northern <strong>KwaZulu</strong>-<strong>Natal</strong> underpin the province's mining sector.<br />
Mining was responsible for about 2% of <strong>KwaZulu</strong>-<strong>Natal</strong>'s<br />
gross domestic product (GDP) in 2013, which is to say R9.3-<br />
billion. Half of the province's mining output (and 3.3% of<br />
South Africa's) comes from Richards Bay Minerals (RBM).<br />
RBM mines the minerals sands of the northern <strong>KwaZulu</strong>-<strong>Natal</strong> coast<br />
and operates out of Richards Bay. The main products of the RBM mine<br />
are zircon, rutile, titania slag, titanium dioxide feedstock and high-purity<br />
iron. Of the approximately two-million tons of product that RBM has<br />
the capacity to produce annually, 95% is exported.<br />
Titanium dioxide adds opacity to paints, fibres and plastics and it<br />
is also vital to the pigment industry.<br />
Rio Tinto owns 74% of RBM. Weak global demand meant that<br />
overall production of titanium dioxide slag by Rio Tinto (including<br />
their Canadian operations) was down 25% in 2015. One of the four<br />
furnaces at RBM has been idled in response to this reduced demand.<br />
Since the deal to develop the Fairbreeze mine and smelter was<br />
signed between Canadian company Tronox and South African resources<br />
company Exxaro in 2012, $225-million has been spent on the<br />
project. The mine came on line in the fourth quarter of 2015, on budget<br />
and ahead of schedule, replacing the closed-down Hillendale mine.<br />
The final $50-million will be spent in the course of <strong>2016</strong>. Feedstock for<br />
the slag furnaces near Empangeni is ilmenite and it produces zircon<br />
and pig iron, amongst other mineral products. China is an enthusiastic<br />
buyer of zircon, but growth in that country has not been as fast in<br />
recent months as was the case for several years up to 2015.<br />
SECTOR HIGHLIGHTS<br />
The Fairbreeze mine and<br />
smelter started operating<br />
in 2015.<br />
• The community in which<br />
Petmin's Somkhele coal<br />
mine operates are now<br />
partners in the business.<br />
• A feasibility study recommends<br />
establishing a provincial<br />
Metals Hub.<br />
• Tronox will spend $50-million<br />
at Fairbreeze in <strong>2016</strong>.<br />
Processing<br />
<strong>KwaZulu</strong>-<strong>Natal</strong> is home to one<br />
aluminium smelter (there were<br />
two in Richards Bay until Bayside<br />
closed in 2015), Arcelor Mittal<br />
has a large steel-making plant<br />
in Newcastle and Tata Steel<br />
KZN manufactures high-carbon<br />
KWAZULU-NATAL BUSINESS <strong>2016</strong>/<strong>17</strong><br />
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