Limpopo Business 2016-17 edition
The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province. Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
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OVERVIEW<br />
At the University of <strong>Limpopo</strong>, the Materials and Modelling Centre<br />
has a nationally-appointed Chair in Computational Modelling of<br />
Materials. The chair, which is funded by the National Department of<br />
Science and Technology and the National Research Foundation, is<br />
held by distinguished Professor Phuti Ngoepe. High-level research is<br />
undertaken into magnesium and titanium compounds and into issues<br />
such as the nanostructures of lithium-ion which are relevant to the<br />
electric-car industry.<br />
Platinum and coal<br />
Despite reduced global demand in the short term, Platinum Group<br />
Metals (PGMs) are very much linked to the modern global economy<br />
and high-technology products of every sort: catalytic converters<br />
and fuel cells are just two examples. Jewellery is another application.<br />
According to marketing agency Johnson Matthey, South Africa has, in<br />
percentages of world supply of Platinum Group Metals: 75% platinum;<br />
35% palladium and 86% of rhodium.<br />
Implats’ major <strong>Limpopo</strong> asset is a 73% holding in Marula (eastern<br />
limb) which is 50km north of Burgersfort. Jubilee is the minority<br />
shareholder.<br />
Lonmin runs the <strong>Limpopo</strong> mine near Polokwane on the eastern limb<br />
of the BIC but most of its mines are in North West province. Lonmin’s<br />
other <strong>Limpopo</strong> assets include the Baobab mine, a concentrator and<br />
a half share (with Mvelaphanda Resources) of the Doornvlei project.<br />
Northam Platinum has the mines Zondereinde (on the western<br />
limb) and Booysendal in the east and in 2015 acquired the Everest<br />
mine from Aquarius. The company is increasing production and made<br />
a profit in 2015 of R595.8-million.<br />
Junior mining companies active<br />
in <strong>Limpopo</strong> include Lesogo<br />
Platinum (the Phosiri Project on<br />
the eastern limb), Nkwe Platinum<br />
and Bauba Platinum.<br />
A new platinum project got<br />
underway near Mokopane in<br />
2015, where Ivanhoe Mines<br />
Platreef Project (64% owned by<br />
Ivanplats) will spend $1.6-billion.<br />
<strong>Limpopo</strong> contributes 4%<br />
of coal mining in South Africa,<br />
according to the National<br />
Department of Mineral<br />
Resources, but it seems likely<br />
that within the next three<br />
decades, the province will be<br />
supplying about half of South<br />
Africa’s coal.<br />
Coal is massively in demand<br />
because of South Africa’s urgent<br />
need for more electricity.<br />
<strong>Limpopo</strong>’s Waterberg coal field<br />
is estimated to contain about<br />
75- billion tons of coal.<br />
Supplying coal to power-producer<br />
Eskom has for many years<br />
been part of the bread-andbutter<br />
income for coal mining<br />
operators. In 2015, Exxaro supplied<br />
Eskom with nearly 30%<br />
of the coal it needed to run its<br />
power stations, about 33-million<br />
tons of coal.<br />
Exxaro spent several billion<br />
rand expanding its Grootgeluk<br />
mine in the expectation that it<br />
would supply coal to Eskom’s<br />
Medupi power station. However,<br />
construction of the giant power<br />
station has been severely delayed,<br />
with the result that Exxaro<br />
are now having to look to export<br />
their coal. The plan was for the<br />
mine to supply Medupi with<br />
14.6-million tons of coal every<br />
year for 40 years.<br />
LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />
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