Limpopo Business 2017-18 edition

OVERVIEW
Mining
Special economic zones open up possibilities for investors in processing.
IMAGE COURTESY OF DE BEERS VENETIA MINE
Diamonds in the north, platinum and chrome in the west and
east and coal just about everywhere – Limpopo Province has
extraordinary mineral wealth. The mining sector routinely
contributes up to 30% of regional GDP but this has fallen back
somewhat with reduced platinum operations in response to a weak
global market for the commodity.
Although there are efforts under way to try to diversify the Limpopo
economy to reduce the dependence on the mineral sector, there is a
parallel effort to use the underground riches of the province to stimulate
the growth of the manufacturing sector. A series of measures have been
developed by the Limpopo Economic Development Agency (LEDA)
to create the circumstances where processing plants and products
can add value to the minerals. A large part of strategy centres around
Special Economic Zones (SEZs), a nationally certified geographic area
where special concessions and tax breaks apply, intended to encourage
inward investment.
The Provincial Government of Limpopo wants to see the supply chain
of mines heavily weighted in favour of local businesses and particularly
small, medium and micro-enterprises (SMMEs). The government has
committed to upgrading informal settlements around mining towns.
Major investments in Limpopo include an ongoing project by De
Beers in Musina to convert its Venetia mine from an open-pit mine to
SECTOR INSIGHT
Carbon-neutral mining is the
goal for researchers at De
Beers’ Venetia mine.
• Impala’s refinery is to be
powered by fuel cells.
• Exxaro has launched
its vision for mining
sustainably.
• Ivanplats’ new Platreef
mine may become the
biggest PGM mine in the
world.
a vertical shaft mine and a multibillion
new platinum mine project
led by a Canadian firm (in partnership
with Japanese companies).
Silicon Smelters (the largest
charcoal producer in Africa) and
Anglo Platinum’s smelting facility,
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