Chinese plan metallurgical complex in SA

A reliable source has revealed that the Chinese will build a metallurgical complex in South Africa.

31 July 2018 | Economics

The investors have been in South Africa for around a week and have visited mines to look for inputs for the project- Richard Zitha, a project executive at the Musina-Makhado Special Economic Zone

Chinese investors signed agreements to build a US$10 billion metallurgical complex in South Africa during President Xi Jinping’s state visit this week and hope to start construction next year, an executive involved in the project and a provincial official told Reuters.

South Africa’s President Cyril Ramaphosa said at a joint news conference with Xi on Tuesday that China had committed to invest US$14.7 billion in the South African economy, but neither leader mentioned the US$10 billion complex.

Ramaphosa is on a mission to kick-start economic growth after a decade of stagnation and is targeting US$100 billion in new investment over five years.

The complex, which is still in the planning stage and envisages building a stainless steel plant, a ferrochrome plant and a silicomanganese plant, is a much-needed vote of confidence in the sputtering South African economy.

Trade and Industry Minister Rob Davies said on Tuesday that China was considering a metallurgical project in a special economic zone (SEZ), but he did not reveal the scale of the project or timeframe.

The executive involved in the project, who did not wish to be named because he was not authorised to speak to the media, said memoranda on the complex were signed before Xi and Ramaphosa gave news conference on Tuesday.

“The investors for the SEZ project were in the room when Ramaphosa and Xi spoke to the press,” the executive said.

Richard Zitha, a project executive at the Musina-Makhado SEZ where the complex will be based, said the project was being led by Chinese state-owned companies, but he declined to name them.

He said the Chinese investors would look for Black Economic Empowerment partners to comply with South African rules designed to address racial disparities more than two decades after the end of apartheid.

The investors were open to investors from other countries joining at a later stage, he said.

“The investors have been in South Africa for around a week and have visited mines to look for inputs for the project,” Zitha said.

The Musina-Makhado SEZ is in Limpopo province close to South Africa’s borders with Mozambique, Zimbabwe and Botswana.

The SEZ plans to house plants with a capacity of 3 million tonnes per annum of stainless steel, 3 million tonnes per annum of ferrochrome and 500 000 tonnes per annum of silicomanganese. Those capacity targets are subject to change and will be finalised by the end of the year, the executive said.

A coal-fired power plant, coking plant and coal washery will be built alongside the metallurgical plants, a presentation prepared for investors showed.

Some of the steel output for the complex has been earmarked for export to China, while other products would be sold to countries in southern Africa, the executive said.

South Africa is already a major exporter of metal alloys to China.

Investors are hoping to receive the necessary environmental approvals by the end of March and would then start construction, Zitha said.

-Nampa/Reuters

Similar News

 

Households drive credit uptake in June

1 day - 04 August 2021 | Economics

PHILLEPUS UUSIKURisk appetite among borrowers remains subdued, with credit extended to the private sector moderating to 2.7% year-on-year in June 2021 from 2.8% year-on-year in...

Du Toit acting as CEO of Agribank

1 day - 04 August 2021 | Economics

STAFF REPORTERThe Agricultural Bank of Namibia (Agribank) has announced the appointment of Louis Du Toit as the acting Chief Executive Officer (CEO). Du Toit replaces...

Bank of Namibia to conduct a BoP census

1 day - 04 August 2021 | Economics

STAFF REPORTERThe Bank of Namibia (BoN) intends on conducting a Balance of Payments (BoP) census in order to increase Namibia's BoP sample size and statistics....

Fuel price monster gentle with consumers

1 day - 04 August 2021 | Economics

PHILLEPUS UUSIKUThe Ministry of Mines and Energy has announced that both petrol and diesel prices will remain unchanged countrywide for month of August 2021.For Walvis...

SA's factory activity tumbles

1 day - 04 August 2021 | Economics

South African manufacturing activity shrank at its fastest rate in 14 months in July, weighed down by tighter coronavirus lockdown restrictions and civil unrest in...

Rail cargo transportation slipped into a decline

2 days ago - 03 August 2021 | Economics

PHILLEPUS UUSIKU During June 2021, Namibia transported 975 708 tonnes of cargo through rail, road, air and sea, compared to 810 940 tonnes and 779...

Electricity production capacity needs to improve

3 days ago - 02 August 2021 | Economics

PHILLEPUS UUSIKU For the month of June 2021, Namibia mainly imported its electricity from Eskom Aggeneis, Zesco-Firm Zambia and ZPC-Zimbabwe due to a decline in...

Nigeria's central bank ends dollar sales

3 days ago - 02 August 2021 | Economics

CHIJIOKE OHUOCHA AND LIBBY GEORGENigeria's central bank is halting dollar sales to exchange bureaus, saying they have become channels for graft and illicit flows of...

KwaZulu-Natal sets state of disaster

3 days ago - 02 August 2021 | Economics

The government of the province worst-hit by recent deadly unrest in South Africa on Thursday declared a state of disaster to divert funds towards recovery.Riots...

GIPF accepting funeral claims electronically

3 days ago - 02 August 2021 | Economics

The Government Institutions Pension Fund (GIPF) is delighted to inform their members and stakeholders that the Fund has amended the funeral claim submission procedure. GIPF...

Latest News

Vaccinated northern chiefs urge subjects...

2 hours ago | Health

TUYEIMO HAIDULA OSHAKATI Communities often look to traditional and religious leaders for advice on how to live. In northern Namibia, these...

EDITORIAL: Happy 80th birthday, Mr...

2 hours ago | Opinion

Today we pause to wish, though belatedly, President Hage Geingob a revolutionary and happy birthday.On the day he turned 80, the usual pomp and fanfare...

DRC fire victims get new...

2 hours ago | Accidents

Adolf Kaure SWAKOPMUNDHome affairs minister Albert Kawana recently handed over 33 identity documents (IDs)...

Suspected stock thieves on the...

2 hours ago | Crime

OTIS DANIELS SWAKOPMUNDPolice confirmed an incident of stock theft that took place at farm Waldheim between last Thursday and Sunday in the...

Delgado-Lühl citizenship judgement postponed

2 hours ago | Justice

JANA-MARI SMITH WINDHOEK The much anticipated judgement in a citizenship case of...

Food security assessed this month

2 hours ago | Agriculture

ELLANIE SMITWINDHOEKThe latest assessment to determine the status of livelihood and food insecurity countrywide is scheduled to take place this month.Anna Dumeni of the Office...

The basic form and structure...

2 hours ago | Agriculture

STAFF REPORTERWINDHOEKIt is important to know the basic form and structure of plants to understand how plants grow and produce seeds and fruits.The technical advisor...

Rangeland management for better grazing

2 hours ago | Agriculture

KIRSTY WATERMEYEROKAHANDJAA Namibian farmer is proving the benefits of holistically managing farmland for better cattle farming results.“The more grass you have, the more cattle you...

Global community must unite against...

2 hours ago | Opinion

NALEDIA PANDOROn 18 July the world marked 103 years since the birth of our late beloved global icon and first president of our democratic republic,...

Load More