The Minister of Trade and Industry, Dr Rob Davies, has approved the appointment of an operator and issued a special economic zone (SEZ) operator permit for the South African Energy Metallurgical Zone. This follows after consideration of the recommendation of the SEZ advisory board.
According to a media statement by the Department of Trade and Industry, the operator was issued to South African Energy Metallurgical Base, a subsidiary of a Chinese conglomerate, Shenzhen Hoi Mor Resources Holding Company Ltd. The issuing of the operator permit authorises the holder to develop, operate and manage the South African Energy and Metallurgical zone within the framework of the SEZ Act and other applicable South African laws.
The Musina-Makhado SEZ was designated in July 2016 to focus on energy and metallurgical processing, agro-processing, petro-chemical projects and logistics. Davies added that "this development will go a long way in accelerating much-needed economic growth, attraction of foreign and domestic direct investment, expansion of the manufacturing sector and mineral beneficiation, as well as creation of employment in the region, which is currently faced with a high level of poverty, unemployment and underdevelopment".
The development consists of at least eight catalytic projects, with a total investment value of more than R40 billion. The energy and metallurgical complex will initially include the following projects: power plant, steel plant, stainless steel plant, coking plant, ferrochrome plant, ferromanganese plant, ferrosilicon plant, pig-iron metallurgy plant and lime plant. These projects will be implemented over the next 10 years and are expected to create more than 21 000 jobs in the region.
Davies also stated that the Musina-Makhado SEZ was strategically located close to the main land-based trade route between South Africa and the broader African continent. "This new development will certainly improve rail and road transport links between South Africa and the rest of the continent."
The official handover of the permit took place on Tuesday, 19 September, in Xiamen, China, during a BRICS exhibition that was held parallel to the China International Fair for Investment and Trade.
Davis extended his appreciation to the Limpopo provincial government through the Department of Economic Development, Environment and Tourism (LEDET) as well as the Limpopo Economic Development Agency (LEDA)'s efforts to develop and make this zone a success.