Limpopo Business 2016-17 edition

OVERVIEW
posed of in 2013 (Rio Tinto was
the majority shareholder). The
main shareholders in the purchasing
holding company are
Hebei Iron and Steel (of China)
and South Africa’s Industrial
Development Corporation, holding
35% and 20% respectively.
The new shareholders have
undertaken to spend R9.3-billion
on the mine complex to extend
the life of the mine which is South
Africa’s only producer of refined
copper. The mine produces
about 80 000 tons of refined
copper every year, and the refinery
produces continuous cast
rod for the domestic market and
cathodes for the export market.
Hebei and the IDC have
jointly committed to spending
a further $5-billion on building
a new steel plant in South Africa.
One of the sites being considered
is Phalaborwa (the others
are Witbank in Mpumalanga and
Richards Bay). Other steel producers
have been stressed by
low prices and over-production
on the global market, but the
IDC believes that they can make steel cheaper and supply the
African market.
Mining activities at the Kumba iron-ore Thabazimbi mine ceased
at the end of September 2015 and processing activities ceased on 31
March 2016.
In contrast to these pull-backs, Anglo American has announced a
further investment of $20-million to expand production at its diamond
mine near the town of Musina. Venetia Mine is by far the most important
part of De Beers’ South African operation, accounting for 3.1-million of
the 5.4-million carats recovered by the company from its six operations.
Limpopo’s mineral riches
Limpopo has a very rich and varied mineral asset base. Platinum occurs
on both limbs of the Bushveld Igneous Complex (BIC), and the
Waterberg district is seen as the answer to South Africa’s coal needs
for the next several decades.
The provincial government reports that the mining sector constituted
26% of Limpopo’s gross domestic product in 2013. In 2015 a
Mining Roundtable was held under the title “Limpopo’s Minerals for a
Broad-Based Industrialisation Agenda” and attended by 250 delegates
from the mining sector, universities, NGOs and government. A key focus
area is to try to ensure that 20% of procurement in the mining sector
goes to small businesses and co-operatives.
Silicon Smelters (the largest charcoal producer in Africa) and Anglo
Platinum’s smelting facility, one of three run by the company, are both
located in Polokwane.
Northam Platinum’s metallurgical complex at its Zondereinde mine
processes Merensky and UG2 ores separately.
51 LIMPOPO BUSINESS 2016/17