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The X-factor in wood chippers

WP CHIPPER HIRE & SALES trading as Africa Biomass Company (ABC) is a wood chipping company that provides wood recycling services, supplying biomass according to specification.

ABC is one of the best go-to wood chipper equipment sales and services agents.

Wood chipper services

  • Agricultural: orchard / vineyard recycling and mulch spreading
  • Biomass for generation of heat or electricity
  • Site clearing and preparation
  • River rehabilitation in riparian zones
  • Workshop, field services, parts and spares
  • Operator training services: SETA-certified
  • Manufacturing workshop

The X-factor in wood chippers

ABC is the authorised dealer for Bandit wood chippers in Africa. Bandit combines first-world technology and experience with third-world functionality. This makes Bandit the only logical choice for wood chippers in Africa, which are now fitted on SABS-approved trailers.

BANDIT – Experience the best of both worlds

First-world technology and quality combined with African simplicity. The main woodchipper unit is manufactured by Bandit Industries, Inc. with 35-plus years’ experience in innovation and international research. These units are shipped to South Africa where they are fitted onto

SABS-approved roadworthy trailers built at Africa Biomass Company in Worcester, South Africa. Engine-powered woodchippers are fitted with Tier 3, South African standard, diesel or petrol engines, depending on the woodchippers’ specification or clients’ preference. Electric and PTO options are also available in various Bandit models.

The add-ons are specifically handpicked to give you the best set-up and will provide you with a well-balanced woodchipper that will outperform most other chippers in Africa.

www.abc.co.za

ABC understands wood recycling

With a comprehensive understanding of the operational challenges of wood recycling in South Africa, ABC has established state-of-the-art facilities to service, repair and rebuild wood chipper equipment of any brand and size. ABC’s facilities are operated by a remarkable team of very experienced and suitably qualified engineers, technicians and artisans.

An equally remarkable team of field-service technicians deliver repairs, maintenance and parts to clients’ sites to optimise uptime and efficiency.

The most experienced wood chips producer in Africa

Dimensional wood chips are produced by the removal of alien invasive trees in riparian zones, previously deemed as impossible. ABC, however, now has the knowledge and technology to get the job done.

These wood chips are then used in agri-industrial applications as a greener alternative to coal for either heat or electricity production.

Geographical footprint

ABC is located in Worcester (Western Cape), Kirkwood (Eastern Cape), Nelspruit (Mpumalanga) and Upington (Northern Cape).

We operate in all nine provinces in South Africa and also across the borders into Sub-Saharan Africa, including Namibia, Botswana, Zimbabwe, Mozambique, Zambia, Malawi, Tanzania, Kenya and Nigeria.

www.abc.co.za

H.E. Cyril Ramaphosa, President of South Africa confirmed for Mining Indaba Virtual

London: Investing in African Mining Indaba (Mining Indaba), part of Hyve Group Plc is honoured to announce that His Excellency, Cyril Ramaphosa, President of South Africa has confirmed to deliver the presidential keynote address at the upcoming Mining Indaba Virtual.

Following last year’s announcements, H.E. Cyril Ramaphosa will be joining the already confirmed president of the Democratic Republic of Congo (DRC), His Excellency, Félix Tshisekedi and H.E. Julius Maada Bio, president of Sierra Leone, at Mining Indaba Virtual which will be held next month, 2-3 February 2021.

10 months ago, the World Health Organisation declared a global pandemic, in which South Africa had been praised for its hard lockdowns ensuring the virus was contained. Almost all industries were disrupted and shutdown, including the mining operations within the country, excluding those supplying coal to power generator, Eskom.

As the world starts to recover from the global pandemic, the South African Chamber of Commerce and Industry (SACCI) remarks on the government’s well-thought-out plan to gradually reopen particular economic sectors, whilst continuing to diminish the Covid-19 virus. The mining industry was one of the first to reopen, as it represents 8% of the country’s GDP and up to 60% of South Africa’s exports. Many of the large mining operators helped combat the virus by developing their own health and safety regimes and working closely with the government to transform facilities to help with control the rise of the Covid-19 rates.

This coupled with the South African National Development Plan (NDP), the industry will help rebuild a capable and developmental state, the booming natural resources sector will be the key driver in the Covid-19 recovery, whilst achieving elimination of poverty and reduction of inequality through significant job creation. As a result, the industry will essentially play a critical role in the economic recovery and prosperity in the global transition.

Mining Indaba Virtual geared towards helping the industry build resilience and regrowth, whilst adopting a new mindset. H.E. Cyril Ramaphosa will take to the online stage to discuss South Africa, the mining economy and the way forward for the country, including opportunities for international investment in gold and PGMS, progress on the country’s response to the global pandemic and ultimately provide an update on South Africa’s power generation and supporting independent generation for mining operators.

Registration for the Mining Indaba Virtual has now opened, the event is free to attend.  For more information about the programme, visit the website here.

Infrared thermometers for 2021

The National Metrology Institute of South Africa, (NMISA) is contracted by the government to maintain South Africa’s National Measurement Standards and ensure they remain internationally equivalent. Reliable measurements for testing is not foremost in the minds of South African citizens. However, the Covid-19 pandemic has brought the measurement of temperature into our daily lives. Most citizens have had their forehead temperature measured employing a non-contact, infrared thermometer as a preliminary Covid-19 screening intervention.

Clinically speaking, if a person’s core temperature is around 37°C, it would be considered normal and the person healthy and Covid-19 asymptomatic. However, a core temperature measurement result of 38°C or higher, would be considered an indicator of possible Covid-19 infection.

A body infrared thermometer is an optoelectronic instrument that is capable of non-contact infrared temperature measurement when placed at a certain distance from the subject’s body surface. Most of the body infrared thermometers can display the body core temperature inferred from the skin temperature they measure. However, the accuracy of the IR thermometer is significant and what matters.

If the measurement is higher than the person’s actual temperature, there is a risk that time, effort and medical resources will be wasted until the test result comes back negative. These resources could have been better spent on an infected person. Cases of Covid-19 infection could go undetected and a potentially infected person sent back into society where they could infect others.

Infrared thermometers have an optical lens, just like a video camera, but instead of an optical detector on the inside, they have a thermopile which converts the infra-red radiation into electrical energy. The thermopile gets hotter as it absorbs more and more infrared energy. The electrical output can then be translated into the temperature of the object.

Where can you go if you doubt the outcome of your Covid-19 screening based on your forehead temperature?
Kindly visit the NMISA website and social media pages, where we share ample information.

Reinstated alcohol ban will have dire consequences for SA wine industry

The South African wine industry is concerned about the dire consequences that yet another alcohol ban will hold for wine-related businesses.

This follows an announcement by President Ramaphosa on 28 December 2020 that the country would revert back to alert level 3, which prohibits the domestic sale of alcohol for on- and off-consumption until 15 January 2021.

“We share the President’s concern over the sudden and severe spike in positive Covid-19 cases and related deaths and understand the need for drastic measures to address it, but we are disappointed and deeply concerned by the blanket approach with regard to alcohol trade that government has taken yet again to curb the spread,” says Vinpro MD Rico Basson.

The previous two bans had a devastating impact on the wine industry with a loss of more than R7.5 billion in sales revenue, significant job losses and a number of wineries and tourism facilities being forced to shut their doors. As a result the industry now has more than 250 million litres of uncontracted wine, with the 2021 harvest to commence within the next two weeks, which will place further strain on businesses’ already dire financial position. This situation, combined with the third ban will do untold economic damage to the wine sector and the 290 000 livelihoods it supports.

The wine industry proactively implemented preventative measures to protect employees and visitors to farms and the 533 wineries. Wine farms are now getting the short end of the stick during the peak tourism season because of the blanket policy approach, the behaviour of the general public and non-compliance with Covid-19 regulations.

“Many lessons have been learned from lockdown level 5 and 4, including that the restriction of legal trade of alcohol fuels the growth of the illicit market. Because this illicit market is outside the regulatory reach of government and operates uncontrolled, it leads to devastating consequences from a health and economic perspective,” Basson says.

“We submitted proposals which included alternative interventions, as opposed to an outright ban, to mitigate risks and formally engage with government. It is unfortunate that these proposals did not find their way into the final regulations to ensure a differentiated approach. We truly believe limitations on wine sales can be imposed in a less damaging manner that would alleviate the impact on the healthcare system and decrease transmission, while still helping to preserve livelihoods.”

According to Basson it is positive to note that the transport and export of wine can continue, as well as storage and safekeeping.

Vinpro, together with the rest of the alcohol industry urge government to be transparent about the state of the health system over the next 14 days to enable an earliest possible review of the ban on retail and on-consumption sales. “We also call on government to enforce regulations to the teeth as it certainly does not help to impose harsh restrictions every time our healthcare system is in crisis, while regulations are not enforced.

“We advise every wine-related business to do their part and work together now to help flatten the curve, so that we can resume trade after 15 January 2021. We also ask everyone out there to please download the Covid Alert SA app, as well as make use of the hotline to report any violation of the regulations on 0800 014 856. We will continue to engage with government on what needs to be done to save lives and livelihoods as we work together to beat Covid-19. Let’s be part of the solution,” Basson says.

The Western Cape’s agricultural export basket is growing

Aerbotics’ Yield Estimation Package for citrus, which was launched in 2019, gives reports on fruit size and colour distribution ahead of the harvest season and projections on yield. (Credit: Aerobotics)

Of the 37 trade agreements facilitated in 2019/20 by Wesgro, the Western Cape’s tourism, trade and investment promotion agency, 25 were in agro-processing and agribusiness and a further three were in the fast-moving consumer goods (FMCG) sector. The total value of these agreements was R3.08-billion and 973 jobs were added to the Western Cape economy.

Examples included a deal in Germany for Cape Dried Fruit Packers (R350-million), in Ethiopia for Good Harvest Market (R700-million), in Ghana for M’hudi Wines (R4-million) and the R200-million contract that Southern Right Foods signed in Mozambique. The last-named company trades as Walker Bay Spice and also exports to Australia, Bahrain, Belgium, Botswana, Dubai, Ghana, Luxembourg, Malaysia, Namibia, the Netherlands, Qatar and the UK.

Total South African agricultural exports reached R175-billion in 2019 with about 40% going to other African countries and 25% to Europe. Fresh fruit accounted for about R50-billion.

Seven of the top 10 exports from the province are agricultural or agro-processed products. As Wesgro notes, the Western Cape is responsible for:

  • Almost half of South Africa’s agribusiness exports.
  • About 70% of South Africa’s beverages exports.
  • About 85% of South Africa’s fisheries exports.

Berries are a growing subsector and two-thirds of production occurs in the Western Cape. More than 70% of the crop is exported and the major production companies are Berryworld South Africa, United Exports and Haygrove SA, an affiliate of UK-based Haygro. Berries thrive between George and Swellendam and sales of chippers have grown because blueberries have to be vigorously pruned.

There is plenty of scope for exports to grow. Current annual exports are 13 500t compared to over 200 000t for table grapes and about 300 000t for apples (South African Berry Producers’ Association). Once producers pass muster with Chinese import authorities, volumes can be expected to grow.

Another subsector to experience rapid export growth is oranges. As a source of vitamin C, oranges grew in popularity as the Covid-19 pandemic spread. South Africa is the world’s second-largest citrus exporter, after Spain, and the number 11 in the world in terms of production. Citrus exports earned South Africa about R20-billion in 2019.

Assessed independently from the country, the Western Cape is the world’s fifth-largest exporter of citrus fruits as it is responsible for 62% of the nation’s volumes. Oranges are the province’s number one citrus export (54% in 2017) and soft citrus (19%) is growing steadily. Europe remains the most important market but Asia and Oceana markets grew from 34% in 2008 to 42% in 2017. The top five countries are the Netherlands, the UK, Russia, the UAE and China.

By contrast, flower growers were badly hit by the effects of the global shutdown. The Western Cape has a strong fynbos sector. Normally, Europe accounts for 80% of exports. National beef exports increased from 8 292 tons in 2001 to 31 888 tons in 2018 with the largest areas of growth in Muslim countries. The Western Cape contributes 15% of national beef output.

The Covid-19 lockdown had a big impact on wine exports and not only because a liquor-export ban was in place for five weeks. Logistics at the Port of Cape Town were reduced to a crawl and with fresh fruit and vital supplies taking priority, wine exporters were at the back of the queue.

Within South Africa, a sophisticated logistics chain can get fruit from harvest to consumer in 40 days (Freight, Logistics and Warehousing). A digital system is to be introduced by the Perishable Products Export Control Board (PPECB) which, along with e-certification launched by the Department of Agriculture, Land Reform and Rural Development, should enhance efficiencies. The Fresh Produce Exporters’ Forum (FPEF) and the Department of Science and Innovation are exploring improved packing and cold-storage methods.

South African winemakers are aiming for better quality instead of greater volumes. Which is not to say that volume is being ignored. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of South Africa) are cooperating on the Chinese market.

A 2006 agreement, the SADC Economic Partnership Agreement, gives produce from the region full or partial exemption from duties on exports into the EU. The three biggest markets by value and volume are the UK, Germany and the Netherlands. The UK is likely to sign a similar agreement, post-Brexit.

South Africa produces about 4% of the world’s wine. The wine industry contributes R36-billion to the country’s gross domestic product (GDP) and employs nearly 290 000 people.

Vinpro is the wine industry organisation which represents 2 500 South African wine grape producers, wineries and wine-related businesses. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape.

Agri-tech exports

The Western Cape is not just a leader in products that grow in the ground, but it is also a world leader in products that hover above the ground. Drone and data specialist Aerobotics has more than 900 clients in 18 countries who have signed up for orchard monitoring, yield and harvest projections and pest and disease management. The drones can also be deployed to pick out individual trees that are classified as “problem trees”.

Aerbotics’ Yield Estimation Package for citrus, which was launched in 2019, gives reports on fruit size and colour distribution ahead of the harvest season and projections on yield.

The Cape Town-based company, which featured in an article in the Arena Holdings publication Food Basket in 2020, was founded in 2004 as a drone manufacturer and evolved into a data provider.

Another digital innovation for exporters was launched in September 2020 in the form of the Cape Export Network. CEN, a joint initiative of the Western Cape Provincial Government, Wesgro and Wines of South Africa (WoSA), is a platform that connects wine producers, buyers and importers.

Wine industry relieved about latest regulations

The South African wine industry is relieved about the latest Covid-19 regulations, according to which wineries may continue to sell wine during licenced trading hours throughout the week.

“We are grateful for the unchanged trading hours for the sale of alcohol for on-consumption as well as the special mention of registered wineries and wine farms which may continue to offer tastings and wine sales to the public for off-site consumption over weekends,” Rico Basson, Vinpro MD says. “This at a time when the wine sector remains under severe financial pressure and is slowly recovering from the adverse effect of the ban on exports and restricted trade earlier this year.

“We believe that the implementation of a more focused approach and targeted interventions in certain hotspot areas will prove to be more effective in curbing the spread of Covid-19, while preserving livelihoods and keeping the economy going,” Basson says.

According to him, these outcomes are aligned with continuous consultation between Vinpro and the respective national government departments and the Western Cape government, as well as a proposal Vinpro made to the Minister of Health, Dr Zweli Mkhize, during a consultative session in George on 13 November, highlighting the industry’s vital economic contribution and the crucial role of wine tourism as part of the broader wine and agricultural sectors.

“We share the President’s concern about the new wave of infections, and pledge to do our part in fighting Covid-19,” Basson says. Vinpro made an urgent appeal to individuals and businesses in the sector to do their utmost to implement preventative measures.

“It is our responsibility to keep our people safe and healthy and to give momentum to the economy, while still strictly enforcing the existing safety protocols. Let’s promote safe and responsible production, trade, marketing and consumption together,” he says.

A regional overview of the Western Cape

Park Inn by Radisson Newlands is one of the group’s six hotels in Cape Town.

By John Young, Western Cape Business 2021 edition

Cape Town’s status as “Africa’s Tech Capital” gives the city-region the basis for leadership in a range of other sectors such as asset management, financial services, business process outsourcing and others.

Neighbouring Stellenbosch is advancing its reputation for technological innovation and the output of the region’s four universities and six TVET colleges ensures that the tech sector has the necessary human capital.

There are 22 active incubators and accelerators in the region which provide networking and marketing opportunities and links to funders and markets. The City of Cape Town has installed 848 km of fibre-optic cable and the sector supports more than 40 000 jobs with established brands such as Amazon and Panasonic coexisting with startups such as Luno, Yoco, Jumo and SweepSouth. Cape Town hosts more than half of all startups in South Africa.

The Western Cape is one of nine provinces of the Republic of South Africa. South African provinces do not have the kinds of powers enjoyed by states in federal entities such as the US or Nigeria. Health, education and traffic have traditionally been the biggest components of provincial authority. The priority list of the Western Cape Provincial Government, however, includes energy and transport.

The province and the City of Cape Town are lobbying national government for a greater role for municipalities in the generation and distribution of energy. The potential of renewable energy is being realised through the national independent power producer programme and there is a strong lobby to build a gas-to-energy plant in the province. The new Special Economic Zone for Green Technology in Atlantis is attracting investment in renewable technologies.

Siemens wind towers manufactured at the GRI factory in the Atlantis Greentech SEZ.

In 2018 the City of Cape Town launched a resilience assessment, the first step in a larger process. The Rockefeller Foundation chose the city as one of 100 around the world in which programmes would be tested to improve the ability of the city to withstand shocks such as severe droughts. The city wants to expand the lessons it learnt in the period of water shortage into other areas such as energy generation and energy efficiency.

The Western Cape Provincial Government is also investing in resilience. A market intelligence report covering energy, renewable energy, water and waste was created by Green Cape to map the assets and challenges in these areas.

In addition to trying to attract green investment into the province, the province is working for improved regulations related to small-scale embedded generation (SSEG). The City of Cape Town also wants to be able to rent out its infrastructure to a power producer who can supply a user via that infrastructure. This is known as “wheeling”. A start was made with the Darling wind farm, but more work needs to be done on the legislative framework.

Much of this work is done by a unit called the Sustainability Energy Markets within the Energy Directorate. Another area of focus for this group is to investigate energy use by low-income households.

The Western Cape is lobbying hard for Saldanha Bay to be a site for a gas-to-power plant. If a gas plant is built at Saldanha, then it could be a catalyst for the use of gas in many other sectors such as manufacturing and residential.

The Cape Peninsula University of Technology’s Energy Institute is a leader in research in the field of electricity. The South African Renewable Energy Technology Centre (SARETEC) on the Bellville campus of CPUT offers courses such as Wind Turbine Service Technician and Solar Photovoltaic Service Technician and various short courses such as Bolting Joint Technology.

The Centre for Renewable and Sustainable Energy Studies is at the University of Stellenbosch and the University of Cape Town has the Energy Research Centre. The University of the Western Cape is doing research on the possibilities of hydrogen as an energy source.

Ease of doing business

In similar vein to the argument for greater involvement in energy issues, Premier Alan Winde has argued that the control of the railways that serve greater Cape Town should be more localised. He cites a deal signed in the city of George between the national and provincial transport ministers to improve the system as an example of the kind of cooperation which is needed.

Energy and transport are keys to being able to do business, and that is the focus of another provincial initiative, the Red Tape Reduction Unit. Successful at a provincial level, the plan is to now set up similar units at municipal level.

Covid-19 created serious backlogs at the Port of Cape Town but the problems predated the health crisis. In December 2019, the Western Cape Department of Economic Development and Tourism (DEDAT) convened a meeting for every kind of port user, from exporters to logistics companies and for the various divisions of Transnet, the tax authority and the City of Cape Town.

The Port of Cape Town (Photo: Transnet National Ports Authority)

In 2019 the Port of Cape Town received 510 ships at the Container Terminal but it could have had many more if turnaround times were better. All parties are working together to find a solution, which will include better coordination of delivery schedules and more cranes. Cranes able to work in high winds are being tested.

Tourism challenges

The hospitality sector suffered a huge blow from the effects of the Covid-19 global lockdown.

As travel slowly picks up, hotel groups, lodges and bed-and-breakfasts are starting to attract inter-provincial travellers. In time, international travel will follow but what of the meetings, incentives, conferences and exhibitions (MICE) sector?

The economic impact on gross geographic product of the Cape Town International Convention Centre alone in 2018/19 was R4.5-billion (Cape Town Central City Improvement District). Wesgro’s Convention Bureau signed 52 events or conferences in the course of 2019/20 but of course most, if not all, of these events will not take place.

The Radisson Hotel Group has come up with “Hybrid Solutions” as a response to the “new normal”. Incorporating Hybrid Rooms and Hybrid Meetings, the idea is to offer virtual participation options and hybrid formats for small local gatherings, while also broadcasting to remote attendees and satellite locations. Hotels will offer teams to set up the equipment. Park Inn by Radisson Newlands (pictured above) is one of the group’s six hotels in Cape Town.

Investment

The province has a dedicated investment agency, Wesgro. The Investment Promotion Unit of Wesgro has been working with various regions within the Western Cape to attract investment and accelerate exports. Seminars have been held in the Cape Winelands, the West Coast and the Garden Route.

In 2019/20, the biggest investments were in renewable energy and manufacturing. Other important sectors are: Agro-processing, aviation, business services, education and training, financial services, real estate, ICT, light manufacturing, oil and gas, timber, tourism, waste beneficiation and clean energy.

Encouraging investment in Cape Town has been recognised as something that needs a full-time office and a strategy. Invest Cape Town is an agency of the city that works to create the best possible conditions to attract investors. Areas of focus include broadband access, energy security, the reduction of red tape and improving air access to the city.

Economy

Finance, business services and real estate combined contribute 28% to the gross domestic product (GDP) of the Western Cape. The financial services and insurance sector are key components of the economy. Many of South Africa’s biggest companies have their headquarters in Cape Town. Asset management and venture capital companies have been growing steadily.

Although agriculture only accounts for 4.3% of GDP on its own, the sector is responsible for the fruit and vegetables that contribute to agro-processing which accounts for nearly 40% of the province’s export basket. (Agro-processing accounts for 8.1% of GDP.) Citrus, wine, apples and pears, grapes, fruit juice, fruit and nuts and tobacco all appear in the top 10 of the province’s exports.

Seventy percent of South Africa’s beverage exports come from the Western Cape. Grapes and wine sales to Europe remain strong, but the Chinese market is becoming increasingly important.

The province has a diverse manufacturing sector ranging from textiles, clothing, footwear and furniture to coke and refined petroleum products. Excluding agro-processing, other manufacturing makes up 6.9% of GDP.

Simera Sense expands into Europe

Cape Town (South Africa), Leuven (Belgium), 8 December 2020 – Today, Simera Sense, a leading supplier of optical payloads for smaller satellites, announced that it is opening an office in Leuven, Belgium.

Over the last two years, Simera Sense experienced exponential growth in the demand for its optical payloads, globally. The expansion into Europe is assisting this growth and allow Simera Sense to support its international customers better and to be closer to its key suppliers. Furthermore, the Flanders Investment and Trade Agency was instrumental in assisting Simera Sense expanding into Europe.

Simera Sense is a business unit within the Simera Group, specifically created to commercialize the optical payload know-how and IP created within the company over the last 10 years. To date, the Simera team designed and produced multiple optical payloads for space missions.

Since the start of 2018, Simera Sense has a specific focus on the new space industry with the development of their xScape100 and xScape200 products for nanosatellites. The market received these products very well with several already delivered to customers.

Simera Sense selected Belgium not only for its central location within Europe but also to tap into the local industry. Not only is Simera Sense procuring its high-performance sensors from within Flanders, but already has established clients in Belgium.

Earlier this year Simera Sense delivered a space-qualified xScape100 telescope to Aerospacelab, a new space company headquarters in Mont-Saint-Guilbert, Belgium. In partnership with Open Cosmos, Simera Sense was selected to be part of the Phi-Sat-2 mission, an artificially intelligent enabled Earth Observation Cubesat supported by the European Space Agency.

With this move, Simera Sense is positioning itself to tap into the global Earth Observation data and service market, with expected growth to $8-billion by 2029.

According to Euroconsalt, more than 50 new space companies have announced that they want to launch Earth observation satellites over the next decade. This represents about 1,800 small satellites with the majority under 50 kg. According to Johann du Toit, the CEO of Simera Sense, it is this market Simera Sense wants to target through their Belgium office.

More importantly, this expansion allows Simera Sense to plough back into the local South African economy. The company will continue to research and manufacture optical payloads at its headquarters in Somerset West. Initially, the Belgium office will serve as a marketing and sales hub, but it will also support clients with the assembly, integration and testing of its payloads.

“At Simera Sense we are excited about the next phase of the company,” says Johann du Toit, CEO of Simera Sense. “For us, Flanders was a logical choice as an entry point into the European market, not only for its location, technology and economic advantages, but also the historical relationships. During the mid-2000s, a core part of the Simera team (then as part of Sunspace) collaborated on the multi-sensor micro-satellite imager (MSMI) as part of a consortium of universities, private companies and research councils in both South Africa and Flanders, Belgium.”

Mrs. Claire Tillekaerts, CEO of trade and investment promotion agency Flanders Investment & Trade (FIT), welcomes the new high tech investment from South Africa in the Flanders region: “Simera Sense investment fits perfectly in the tech strategy of (Flanders) FIT to attract foreign tech-driven players to Flanders and to become one of the top of innovative regions of Europe in the next 5 years.

“Simera Sense will be a valued partner of Flanders’ aerospace and space ecosystem, which already includes more than 150 companies in Flanders. Using Flanders’ Agency for Innovation and Entrepreneurship (VLAIO), the company will enjoy the same support in R&D projects and can, thanks to its local presence, become a lead partner in new EU (e.g. Horizon) or ESA projects. ”

About Simera Sense

Simera Sense is a world leader in the development of optical payloads for nano-, micro-, and small satellites. As part of the Simera Group, Simera Sense does have a shared history with South Africa’s small satellite industry and access to centuries of collective experience in the space industry. The company’s in-house resources and infrastructure allows them to design, build, verify and calibrate world-class optical payloads. Simera Sense is situated in Somerset West, South Africa.

Read more about at www.simera-sense.com

 

Mining exploration, the next frontier

Image: Anglo American Plc

South Africa is currently attracting just 1% of global spending on mining exploration, a figure that normally reaches R160-billion annually.

Several industry leaders have expressed concern about the low level of exploration activity, but in 2020 they were joined by the Economic Transformation Committee (ETC) of the African National Congress (ANC), the country’s majority political party. The ETC sees exploration as a way of broadening the scope of ownership within the mining industry.

Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, wants to see South Africa attracting at least 5% of global exploration. For exploration to expand a reliable cadastre is required. A cadastre is a record of property boundaries and ownership. The Council for Geoscience is working on this. Drone technology could take the mapping process forward, allowing for more exploration at a lower cost.

In his 2019/20 budget vote, Mantashe noted that about 4 000 permanent jobs would be created by the recent investment of about R45-billion through projects such as Exxaro’s Belfast expansion (coal), Sasol’s coal mine replacement programme and Vedanta Resources’ huge zinc mine in the Northern Cape.

An overview of the mining sector in South Africa

Many mining companies want to start generating their own power, particularly in the light of unreliable supply from the national utility, Eskom.

African Rainbow Minerals is currently operating just three of its 10 plants in the ferroalloy sector, with the cost of electricity the main reason for reduced activity. ARM is constructing a demonstration ferromanganese plant to test alternative energy systems with the hope that costs can be significantly reduced.

The CEO of Minerals Council SA, Roger Baxter, calls the hurdles faced by mining companies trying to put alternative power projects in place, a “serious challenge”. In 2019 Minister Mantashe wrote to the National Energy Regulator of South Africa (NERSA) granting a deviation from the existing Integrated Resources Plan (IRP) to allow for the quick licensing of generation facilities up to 10 MW.

Coal giant Exxaro has disposed of its stake in Tronox Holdings (mining and processing of titanium ore, zircon and other minerals) but in 2019 took full ownership of renewable energy company Cennergi, which owns two wind farms in the Eastern Cape. Indian company Tata Power held 50% of the company through a wholly-owned subsidiary before the sale.

Despite the global lockdown, Exxaro expected earnings for the first six months of 2020 to be higher than the R3.2-billion earned in 2019. The weaker rand and record coal exports helped to balance lower dollar prices achieved.

Coal continues to be an important part of the South African mining landscape, despite pressure to move to renewable resources. As Baxter points out, “In 2018 the sector employed almost 90 000 people (representing about 19% of total employment in the mining sector), with an estimated 180 000 further people employed as a result of coal mining activities.”

Gold Fields’ earnings for the half-year to June 2020 increased four-fold because of a buoyant gold price. The August 2020 price for gold reached nearly $2 000. Analysts warned against reading too much into some of the more extreme rises in the value of gold mining stocks (DRD Gold went up some 240% between January and July) because the underlying conditions for gold mining in South Africa are tough.

Implats (Impala Platinum) was expecting to report annual headline earnings five times better as a result of improved commodity prices.

Good mineral prices kept mining shares buoyant during the lockdown.

Another company to report improved half-year results was Sibanye-Stillwater which increased volumes at its platinum group metals (PGM) operations and its gold mines in the first half of 2020. Some production was lost due to the steps taken to deal with Covid-19 but, because of the inclusion of the Marikana operations (bought from Lonmin), South African PGM production actually increased by 5% year-on-year to 657 828 ounces.

Gold production within the group was also up after strikes affected volumes in 2019. Production of 403 621 ounces was 17% higher than the previous year’s figure. The group expects all of its South African operations to be running at optimal production levels by the end of 2020.

The sale in 2020 by AngloGold Ashanti of its Mponeng mine and Mine Waste Solutions to Harmony Gold for $300-million (about R4.4-billion) marks the end of an era. Although the company’s headquarters will continue to be in Johannesburg and it will be listed on the JSE, its mines are in Ghana, the Americas and Australia. AngloGold Ashanti was the successor to the mining company formed by Ernest Oppenheimer in 1917.

Harmony Gold’s acquisition strategy, including the purchase from AngloGold of Moab Khotsong mine in 2017, will result in it being the country’s biggest gold producer. With 350 000 new ounces coming from Mponeng, it could produce an annual total of 1.7-million ounces.

Afrimat continued to expand its commodities portfolio in 2020. Previously focussed on construction materials, Afrimat bought a 27.27% stake in a high-grade anthracite mine in Mpumalanga, Nkomati, and followed this with the purchase of Coza Mining, an iron ore and manganese company in the Northern Cape. Afrimat’s first foray into commodities was also in that province, the R322-million acquisition of the Diro mine. In October 2020 Afrimat applied for Nkomati to be placed under business rescue because of the Covid-19 lockdown but stated that it believed the business could indeed be resuscitated.

Diamonds

An ongoing project by De Beers to convert its Musina mine from an open-pit mine to a vertical-shaft mine will extend the life of mine of this northern Limpopo project to 2045. Venetia Mine is by far the most important part of De Beers’ South African operation, accounting for 3.1-million of the 5.4-million carats recovered by the company from its six operations.

Petra Diamonds has made it known that it will consider offers for parts of its business or all of its operations. This follows a strategic review where the issue of a R11.25-billion debt repayable in 2022 loomed large. The review began when the South African Covid-19 lockdown began. Most of the company’s major expenditure on expansion projects is behind it but reduced demand, even before the lockdown, has affected earnings. Revenue for the six months to December 2019 was down by 6%. Of the company’s three South African mines, Finsch (Northern Cape) and Cullinan (Gauteng) generate 90% of output and 75% of revenue.

In the Northern Cape, Ekapa Mining paid R300-million to buy out Petra Diamonds from a JV.

Zinc

When phase three is reached, the biggest new mining project in South Africa will deliver 600 000 tons of zinc for Vedanta Zinc International. Located at Aggeneys in the Northern Cape near the border with Namibia, the Gamsberg zinc project has so far attracted $400-million in investment from the company and has started trucking product to the Port of Saldanha. Phase one of the open-pit operation will deliver an annual load of 250 000 tons of zinc. If it proceeds to phase three, it will likely go underground.

The Northern Cape Province is planning for a deep water port development at Boegoebaai. Part of the strategy involves the creation of a commodities corridor linking the Upington Industrial Park with the port.

In August 2020 Australian miner Orion announced it had raised $6.2-million in share capital towards its Prieska Zinc-Copper Project.

Iron ore and manganese

In 2019, Sitatunga Resources purchased the East Manganese project on the Hotazel-Kalahari ore belt from Southern Ambition. Menar Holdings, which controls a majority share in Sitatunga, is mostly invested in coal.

The overwhelming majority of the world’s manganese comes from the Postmasburg and Kalahari regions of the Northern Cape. Assmang has two manganese mines in the province: Nchwaning and Gloria.

The Northern Cape produces more than 84% of South Africa’s iron ore. The province has two major iron belts, from Postmasburg to Hotazel, and running through Sishen and Kathu. Sishen is the most important iron-ore mine in South Africa, where operations include extraction and four beneficiation plants.

Kumba Iron Ore has the huge Sishen facility at Kathu and Kolomela. Assmang, a joint venture comprising African Rainbow Minerals and Assore, mines at Khumani. The company will spend R2.7-billion on upgrading its Gloria mine.

South32 is active in the Northern Cape: Hotazel Manganese Mines is made up of two mines, Wessels (underground) and Mamatwan (open cut), and the Metalloys manganese smelter.

Online resources

 

The 2021 guide to business and investment in the Free State

The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State.

The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages.

Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors.

The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector.

In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

Read the publication in e-book format here 

For a hard copy or more information, please contact the publishers