SEPTEMBER 22, 2014: THE Coega Development Corporation (CDC) — a state owned enterprise wholly owned by the South African government and the operator of the Coega Industrial Development Zone (IDZ) in Nelson Mandela Bay — has announced ambitious plans for the expansion of metals beneficiation initiatives and metal sector investments in South Africa over the next decade.
The CDC aims to secure investments worth US$2.5billion for the Coega IDZ, through its recently unveiled 2014 – 2024 metals cluster strategy.
According to Dr Ayanda Vilakazi, CDC’s head of marketing and communication beneficiation initiative presents one of the rarest opportunities for South Africa to continue sustainable growth of its economy beyond mining.
“Our metals clusters strategy is aligned to Department of Trade and Industry (DTI’s) Industrial Policy Action Plan (IPAP) the Beneficiation Bill and government’s long term National Development Plan (NDP) that provides focus and clarity for the country’s minerals industry to develop mineral value chains and the expansion of beneficiation initiatives in the country,” Vilakazi said.
Approximately 2 000 hectares, or 20 % of the IDZ’s surface total land surface, have been earmarked for ferrous and non-ferrous metal industrial activity. The CDC also estimates that 8 198 direct and 19 853 indirect jobs can potentially be created for the South African economy.
According to Sadick Davids, CDC metallurgy business development manager, several metal sector and mineral beneficiation projects are progressing well in the Coega IDZ with a “healthy investment pipeline”.
“The manganese smelter, electro-mechanical component manufacturing plant, composite manufacturing and steel manufacturing of rail components will be converted in feasibility study stages in the next year, and these projects are valued at US$ 1.2 billion.
“Several projects worth US$ 118 million are currently in funding stages, and include an iron ore plant, steel rolling mill and steel tube manufacturing plant.
“We have also received letters of intent from investors for a steel manufacturing plant and a manganese smelter collectively valued at US$ 712 million.
Davids also said Agni Steels SA, a high-tech US$36 million smelting facility went into pilot production and will be moving towards full production later this year.
“We will intensify investor relation activities and are eager to pursue steel, stainless steel, rolling-mills, manufacturing, ferro-chrome, ferro-nickel and ferro-manganese smelting projects over the next 10 years, he said.
Davids believes the inbound and outbound value adding logistics infrastructure remains an important strategic enabling support area.
“Partnerships and engagement between government, private sector and the community is crucial to further improve South Africa’s competitive position as a world-class location for sustainable manufacturing, metal sector investments and mineral beneficiation,” Davids said.
Earlier this year CDC made history as South Africa’s first IDZ which attracted double digit investments to South Africa in one year, and plans to maintain the pace through metals beneficiation, and it remains bullish over investment attraction to the Coega IDZ.
“The South African government’s Special Economic Zones Act (2014) has introduced a host of new tax incentives, reduction in red tape and labour productivity-enhancing mechanisms that will drive metals sector investment and investor interest for the country,” said Dr. Vilakazi.