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Amid continuing uncertainty, Investing in African Mining Indaba announces cancellation of the 2021 edition and launches a virtual event

Investing in African Mining Indaba (MI), part of Hyve Group PLC, announces with regret the cancellation of the 2021 edition, due to take place 1-4 February 2021 in Cape Town, South Africa. The event will return on 7-10 February 2022. Mining Indaba’s sister event, Africa Oil Week, has also been cancelled and will return 1-5 November 2021 in line with its regular dates.

Seven months since the World Health Organisation declared a global pandemic, the continuing uncertainty is a primary contributor to the cancellation of the 2021 event. Additionally, international travel limitations and current restrictions for hosting events in South Africa which prevent larger gatherings mean the organisers can no longer be certain of delivering Mining Indaba to the high standard to which their audience is accustomed.

The 2022 event will take place in accordance with the latest health & safety and government guidance. The well-being of speakers, delegates, sponsors and exhibitors will remain a top priority. As always, the event’s objective will be to gather the most influential decision-makers in African and global mining to network, make deals and shape discussions crucial to the future success of the industry.

Simon Ford, Portfolio Director of Investing in African Mining Indaba and Africa Oil Week, said:

“Bringing people together is at the heart of what we do at Mining Indaba. However, based on current uncertainty caused by the COVID-19 pandemic, we took the view that our delegates’ ROI and ROTI would have been significantly impacted at an in-person event in February 2021. Our focus is now on delivering an unbeatable live event in February 2022, which will reunite and regenerate the industry, as well as, provide the leading platform to help rebuild the future of African mining. We would like to thank all those who have supported us throughout the years.”

Furthermore, Mining Indaba is delighted to announce the launch of Investing in African Mining Indaba Virtual ‘Resilience and Regrowth: Adopting the New Mindset for African Mining’ taking place 2-3 February 2021; recognising the role that Mining Indaba plays in connecting the global mining community and its significance in shaping the industry for the year ahead.

The virtual event will feature free high-level content streamed online, including pioneering insights from the industry’s heavyweights, multi-stakeholder strategic conversations, keynote addresses and more.

For further announcements, please check the website – www.miningindaba.com

Total makes second significant gas condensate discovery

Image: Petroleum Agency SA

Paris, October 28, 2020 – Total has made a significant gas condensate discovery on the Luiperd prospect, located on Block 11B/12B in the Outeniqua Basin, 175 kilometers off the southern coast of South Africa. This discovery follows the adjacent play opening Brulpadda discovery in 2019, which proved a significant new petroleum province in the region.

The Luiperd well was drilled to a total depth of about 3,400 meters and encountered 73 meters of net gas condensate pay in well-developed good quality Lower Cretaceous reservoirs. Following a comprehensive coring and logging program the well will be tested to assess the dynamic reservoir characteristics and deliverability.

“We are very pleased with this second discovery and its very encouraging results, which prove the world-class nature of this offshore gas play,” said Arnaud Breuillac, President Exploration & Production at Total. “With this discovery and the successful seismic acquisitions, Total and its partners have acquired important data on the Paddavissie fairway, which will help to progress development studies and engage with South African authorities regarding the possible conditions of the gas commercialization.”

The Block 11B/12B covers an area of 19,000 square kilometers, with water depths ranging from 200 to 1,800 meters. It is operated by Total with a 45% working interest, alongside Qatar Petroleum (25%), CNR international (20%) and Main Street, a South African consortium (10%).

About Total

Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

World Cities Day places urbanization under magnifying glass

As the world celebrates World Cities Day on October 31st, as coined by The United Nations General Assembly, we as a global community, need to address the future challenges of urbanization and make a concerted effort in contributing to sustainable urban development; especially during the worldwide Covid-19 epidemic, whilst most households work and study from home.

Alexander Abrass, Senior Sales Director – Danfoss Cooling, Turkey, Middle East & Africa.

Alexander Abrass

It is estimated that cities and towns are populated by at least 55% of the human population and that this number will increase to 70% by the year 2050, with the majority of growth attributed to Asia, Africa, China, India and Nigeria where population growth is at its highest.

“The UN-Habitat identifies cities and their communities as being at the frontline of the Covid-19 response, and Danfoss aims to contribute at the forefront in the supply & recommendation of green-economic, sustainable and energy efficient technology to ease the impact of urban development during this new normality,” says Abrass.

Urban October was launched by UN-Habitat in 2014 to emphasize the world’s urban challenges and engage the international community towards the New Urban Agenda.

The aim – to ensure cities and human settlements become more inclusive, safe, resilient and sustainable.

Gone are the days of conventional methodologies of producing, transporting, storing and the way we consume perishable foods. As it is estimated that 8.9% of the world’s population (690 million people) suffer from hunger, we need to do more with less, as a global community.

A lot more needs to be done about food safety and how produce is treated; and it needs to be done in an energy efficient way, as we face over a quarter of a billion people potentially at the brink of starvation. Carbon dioxide, or CO², as a refrigerant has therefore become a hot topic in the food retail industry,” says Abrass.

The Birmingham Energy Institute estimates that as much as 90% of the food wastage in developing countries stems from food loss somewhere along the supply chain. An estimated $940 billion dollars are lost, and 4.4 billion tons of greenhouse gas emissions are created by the production of food, which will never be consumed, annually. With efficient cold chains, food loss could be reduced by up to 40%.

Another concerning issue cities are facing, is that of clean water and sanitation. Amidst the Covid-19 pandemic, we still live in a society where:

  • one in three people do not have access to safe drinking water;
  • two out of five, do not have basic water facilities for personal hygiene;
  • 673 million people still participate in public defecation.

Lastly, climate change is an ever-increasing concern to our entire planet.

In the past months, amid the economic slowdown caused by Covid-19, we have seen a decline in the global energy demand by 3.8%, and a consequent drop in CO² emissions, alas unless the wave of investment to restart economies is dedicated to the green transition, the rebound in emissions can be larger than the decline. To meet the 1.5°C Paris target, we must cut emissions by 7.6% in the next year, and every year thereafter.

Sustainable, efficient energy infrastructure alongside building efficiency retrofit, are investments that can support countries, boosting economic growth and mitigating climate change.

“We need to adapt swiftly and promote mechanisms for raising capacity for effective climate change-related planning and management in least developed local and marginalized communities. At Danfoss we own, create and constantly improve the technology and solutions, required to address these growing concerns successfully, whilst being energy efficient and mindful of the environment,” Abrass concludes.

Sources:

*The United Nations General Assembly, UN-Habitat World Cities Report, Birmingham Energy Institute.


Article written by Lynne McCarthy, Danfoss Marketing and Communications Specialist Consultant – Turkey, Middle East & Africa.

Diamond cutting and polishing company in Kimberley delivers superior quality

Company profile: Outclass Crystallized Gems, Kimberley

General business activities

Outclass Crystallized Gems is a diamond cutting and polishing company situated in Kimberley, South Africa. In the very heart of Kimberley amongst the very souls that are dear to the history of diamonds, our business model is not only based on buying and selling diamonds, but in also reviving the diamond legacy once embraced by the city of Kimberley through creating job opportunities for the fellow youth within the Northern Cape and South Africa as a whole, whilst creating unique experiences for its clients/customers.

We are a young company with big dreams. Our desire is to be one of the key players in South Africa’s diamond industry by continually working hard towards building a reputation for honesty, integrity, cutting-edge technologies, and community-mindedness.

The company is currently assisted by the Kimberley Diamond Jewellery Incubator. The role of the Incubator is to mentor, coach, service and provide the company with state-of-the-art facilities & technology in order to lead it to a position where it is able to be self-sustaining & self-sufficient; therefore enabling us to achieve our short-term goals and spurring us on towards our long-term goals.

Furthermore, Outclass Crystallized Gems receives direct support from Petra Diamonds (Mining Group) and CS Diamonds (Rough Diamond Auction/Tender House). More details are provided below.

Outclass Crystallized Gems is part of the “Young Diamantaires Program”, which is run by the World Federation of Diamond Bourses and a member of the Diamond Dealers Club of South Africa. Recently (06/10/2020), The De Beers Group announced the 5 companies selected for their Enterprise Development Program and Outclass Crystallized Gems is deeply humbled and honoured to be amongst the companies selected.

This marks a new & exciting chapter in our life as an organization, further propelling us towards our vision of building an organization that offers unique customer experiences, whilst positively contributing to its surrounding community. We greatly look forward to work with The De Beers Group & Raizcorp on this project.

Partnerships

Outclass Crystallized Gems works very closely with the Northern Cape Department of Economic Development & Tourism, Petra Diamonds (Mining Company) and CS Diamonds (Rough Auction/Tender House).

Our collective goal and objective is to beneficiate the minerals locally, create employment and establish stable & consistent markets internationally for our loose polished diamonds.

Both Petra Diamonds & CS Diamonds support us with consistence rough diamond supply, finance & non-financial support (mentorship).

At the beginning of 2019, we set out to exhibit at three major international diamond jewellery shows. The JCK Las Vegas Show (biggest diamond jewellery show in the world), September Hong Kong Gem & Jewellery Fair (second biggest diamond jewellery show in the world) and VOD Dubai International Jewellery Show.

At the JCK Las Vegas Show, we launched our exclusive loose polished diamond brand “PURPOSE” and were the only company representing Africa out of approximately 2400 exhibitors.

A selection of products from Outclassed Crystallized Gems

Markets

Together with the Northern Cape Department of Economic Development & Tourism, we have committed towards exhibiting at the JCK Las Vegas Show, September Hong Kong Gem & Jewellery Fair and VOD Dubai International Jewellery Show for the next five years consecutively. This is to build our reputation and establish a firm footprint within all three market demographics mentioned above.

Over 80% of our current turnover originates from the USA, Canada, and China. Further investment will solidify our presence in all three target markets.

Furthermore, Outclass Crystallized Gems will be hosting a cocktail event in New York at the beginning of 2021 (date to be announced), put together by our mentor Mr Ronnie VanderLinden. Around 50-75 delegates from leading jewellery retail stores, the media and trade members are expected to attend. The objective of this event is for Outclass Crystallized Gems to further establish its brand name within the American market.

Our current focus area is therefore in producing the specifications below to meet our target market’s needs:

  • Cut: Round Brilliant Diamonds (other shapes too, upon request)
  • Colour Range: D-J
  • Clarity Range: VVS1-SI1
  • Carat Weight Range: 1ct-10ct

Company Purpose

Revive the legacy once embraced by the city of Kimberley through the creation of jobs within the Northern Cape and South Africa as a whole, equipping the local community with the skills needed in order to cut and polish diamonds for the local and International market, whilst creating unique experiences for its clients/customers.

Company Vision

  • To be the largest diamond cutting and polishing firm in the world with leading advancement in all aspects of the field.
  • Become a key player in the growth of the diamond cutting & polishing industry in South Africa and contribute to the economy at large.
  • Increase the assets and investments of the company to support the growth and development of the surrounding community.

Company Mission

  • Provide our clients with superior quality diamond and jewellery products exceeding their own expectations.
  • Build a strong and firm relationship with our clients by providing them with the necessary service.
  • Be professional and self-sustaining; providing customer satisfaction through the quality of our products

Contact Outclass Crystallized Gems:

[contact-form-7 id=”1320″ title=”Northern Cape Department of Economic Development and Tourism”]

 

Biggi Brands: Suppliers of premium popcorn since 1991

Company profile: Biggi Brands

Since its inception in 1991, the company has grown to reach record sales of c. 16,100 metric tons in the last financial year, mainly due to a substantial recent investment in production capacity and technology.

Overview

Biggi Brands was founded in 1991 and is situated in Hopetown, Northern Cape.

The majority of our popcorn is produced by nine contracted farmers, who mostly farm on the fertile banks of the Orange River, which is free from industrial waste. Our popcorn is produced in the heart of South Africa’s center pivot irrigation region.

Main markets

  • Approximately 70% of our popcorn is exported each year.
  • In South Africa, we supply to both of the major cinema chains in South Africa as well as independent cinemas.
  • We have been the exclusive agents for Gold Medal catering equipment since 2003.

Biggi Brands sold approx. 16,100 metric tons of popcorn during its 2019 financial year, which represents an increase of 3,500 metric tons (28%) compared to the 2018 financial year. This volume comprised 14,500 metric tons of Butterfly, and 1,600 metric tons of Mushroom.

Biggi Brands currently exports bulk popcorn to 10-12 countries across the world situated primarily in Europe and Asia-Pacific and the Middle East. We have exported to 15 countries in total over the course of our history.

With our warehouses in Midrand (Gauteng), Durban, Cape Town and Port Elizabeth, Biggi Brands delivers weekly, according to our customers’ needs. For industrial clients, we offer to deliver directly to their production premises.

South African customers

Our focus is to supply popcorn that produces large popped kernels. We work closely with our customers to understand their product and production needs, and have a record of consistently meeting their specifications.

Mushroom popcorn

Used as a coated product like caramel, chocolate, etc. In the ready-to-eat market, therefore it is important that the popcorn should be resistant to breaking during the production process.

(We have noticed an increased demand for mushroom popcorn in recent years. Biggi can offer mushroom varieties which meet industrial demands for coating.)

Butterfly popcorn

Named for its “wings”, it is prized for its high expansion ratio when popped. Butterfly is predominantly sold in cinemas, which sell by volume. (We focus on expansion per kernel, kernel count and firmness of wings, to ensure that popped kernels are large and do not break easily.)

We sell our bulk popcorn under our own brand and also package for customers in their branded bags. We also produce a range of microwave popcorn, which we select from our best popcorn to achieve the largest popped kernel and least number of un-popped kernels.

Contact Biggi Brands:

To discuss potential trade opportunities, please contact the company here:

[contact-form-7 id=”1320″ title=”Northern Cape Department of Economic Development and Tourism”]

Drivers improving the business case for solar

Spar, Belfast (Supplied: IMPower)

Covid-19 presented businesses across the board with the opportunity to re-evaluate both their operational models and costs. Proactive organisations found themselves navigating a wake of reinvention by establishing variable cost structures as well as employing agile operations in terms of energy supply.

Confronted by plummeting sales and revenue along with rising inflationary costs, businesses have found themselves under immense financial pressure to rapidly recover from the pandemic at hand. In order to do so, business leaders have sought to reduce unnecessary expenses as far as possible by investing in cutting edge technologies to bring about improved energy savings.

In March this year, the government declared a nationwide ‘lockdown’ in order to slow the spread of the coronavirus. This lockdown, albeit necessary, plunged the economy into its greatest recession in 90 years. With businesses all clambering to recommence operations as restrictions ease, the resulting upswing in electricity demand has placed immense strain on Eskom’s ageing and poorly maintained infrastructure. In July this year, a number of concurrent breakdowns resulted in a resurgence of power supply interruptions, otherwise known as load shedding, in an attempt by Eskom to protect the national grid from collapsing. By the end of July, the amount of power reductions for the year had already exceeded the levels observed in 2019, which was the worst year of load shedding on record.

This unanticipated surge in load shedding has contributed to the nation’s thwarted post-Covid-19 economic recovery and unless real, measurable and deliberate action is implemented to support private electricity generation, incapacitating power cuts will continue for years to come, further derailing the domestic economy and stifling both local and international investment.

Eskom asserted that its improved maintenance programme, in pursuance of addressing decades of neglect and mismanagement, will cease load shedding within 18 months. However, it is abundantly clear that this goal will misfire, as seen by the scope of challenges at its inefficient coal-fired power stations.

The ultimate solution is for the government to employ bold policy frameworks empowering municipalities, industries, businesses, farms and households to swiftly adopt new generation capacity with reliable, low cost and environmentally friendly wind and solar PV installations, coupled with battery storage initiatives.

Extensive research from some of the world’s most respected energy experts has revealed that no other energy source, including hydro and wind, can provide power as sustainably, reliably, and efficiently as solar power.

According to industry experts, the future scope of solar energy for Africa is extensive and has seen exponential growth in the past few years. The continent has experienced a growth of over 1.8 GW of new solar installations, with 1.4 GW related to photovoltaic (PV) installations, which is a considerable increase from the 786 MW that was connected in 2017. In 2016, South Africa had 1,329 MW of installed solar power capacity and according to governments 2019 Integrated Resource Plan (IRP), this capacity is expected to reach 8,888 MW by 2030.

Solar has a major bearing on the African energy sector. The total power derived from solar has officially outpaced any other fuel with regards to global energy output. Solar is currently the frontrunner in renewables and solar PV additions are transcending all other fuels, including coal. A report conducted by The International Energy Agency (IEA) predicted unprecedented solar PV growth up to the year 2022.

Gabriel Kroes, Head of Engineering at IMPower, commented: “As industries once again gain momentum, and the energy demand pattern normalises, this will result in an increase in load shedding incidents. However, in response to this, businesses and the private sector are substantially accelerating their efforts to procure their own power.”

Bulk electricity prices are set to increase by approximately 15% next year after a court victory for utility giant, Eskom. In a legal battle, Eskom and the National Energy Regulator of South Africa (Nersa) were contesting over Nersa’s decision to deduct a R69-billion equity lifeline from Eskom’s allowable revenue. That R69-billion had been apportioned to Eskom in the 2019 budget to assist the power utility in paying off its escalating debt. The high court in Johannesburg pronounced Nersa’s conclusion unlawful and ruled the full amount to be paid back to Eskom over the next three years. If left uncontested, the ruling will further disrupt businesses and suppress the nation’s economic recovery.

Within the past seven years, South Africa has observed an almost 300% increase in electricity costs.

In 2020 alone, between a 9% and 15% increase has been observed. Such increases are unsustainable and represent an additional substantial driver for why companies are seeking more efficient measures to provide a sustainable or stable cost of electricity. Another significant driver is the decline in the price of renewable energy alternatives, further incentivising the shift.

Electricity is a critical commodity enabling and supporting a country’s economic growth, which ultimately leads to poverty alleviation, job creation and a decline in inequality. This is clearly outlined in South Africa’s official National Development Plan 2030 which states, inter alia: “The NDP aims to eliminate poverty and reduce inequality by 2030. According to the plan, South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society.” – https://www.gov.za/issues/national-development-plan-2030

“It remains evident that the citizens and businesses of our nation are unable to depend exclusively on the national grid, and it therefore remains vital that they be supported by government in seeking various energy alternatives, such as solar power. As the levelised cost of solar has declined dramatically over the past years, this energy source remains far more affordable and reliable in comparison to its fossil fuel powered counterpart,” commented Mr Kroes.

Air Products’ state-of-the-art Dissolved Acetylene Facility in Midvaal – a successful sustainability model

Air Products unveiled a Dissolved Acetylene (DA) Facility in Midvaal two years ago. The design objectives of this project were clear: to centralise the manufacturing of acetylene at a single dedicated high volume production facility, but more importantly, to design it in such a way that it was aligned to the latest global trends in processes technology, health, safety and environmental management, ultimately supporting the organisation’s sustainability model.

Guided by Air Products’ global engineering standards as well as years of management and operational experience, the in-house Air Products project team designed and constructed the facility to incorporate the latest technology for the safe production of high quality acetylene gas in a manner that is not harmful to the environment. Two years later, the success of this facility is evident in the combination of production excellence and more importantly, sustainable practices.

Powered by solar energy

Air Products formed a relationship with a wholly black-owned and controlled energy company, Jeka Energy, a subsidiary of Jeka Resources. The relationship with Jeka Energy forms part of the company’s Enterprise Development Programme and Jeka completed the first solar PV (Photovoltaic) roof-mounted power plant at the Kempton Park Facility in 2019.

Jeka Energy CEO, Thembani Jeffrey Marhanele comments: “Since the inception of the relationship with Air Products, we have felt like a valued partner and not only one of many suppliers. The collaboration of technical knowledge between the two parties has truly strengthened and capacitated our team. With the Kempton Park facility installation being roof-mounted, the ground-mounted Midvaal Facility solar PV system highlights our ability to design, install and commission tailor-made solar PV systems.”

The Midvaal Facility’s ground-mounted, automated solar system consists of 306 panels.

Through this solar plant, which generates daytime solar energy, the renewable energy displaces most of the grid energy Air Products would otherwise use. The power is being utilised by both the manufacturing plant and the administration building.

Based on the success and savings achieved at the Kempton Park Facility, a 100kW (peak) solar panel system was installed by Jeka Energy and commissioned at the Midvaal Facility in June 2019. Due to the availability of space at the facility and the health and safety advantages of maintaining a ground-mounted power plant, it was decided to place the panels on the ground. This approach also allowed the panels to be orientated independently of the buildings for optimal capture of solar radiation.

This system feeds green energy directly into the Midvaal Facility’s electrical system. It generates approximately 170 000 kWh per year and consists of 306 solar panels and two inverters. According to Anton Grobbelaar, DA Plant Manager, the site energy mix and utilisation is optimised according to the system performance and weather patterns. “This supports our focus as an organisation to protect the environment and use clean energy.”

The dam used for water harvesting.

Recycling and harvesting water

The facility was designed in such a way that the process water is a combination of recycled water, harvested rainwater and municipal water.

During the rainy season, rainwater is captured across the site by an extensive drainage network and is channelled to an on-site dam. The dam has a capacity of two million litres and provides water directly to the production process.

Through the use of this natural resource, there is a significant reduction in the consumption of municipal water, once again highlighting the company’s focus on sustainable production methods.

Creating opportunities with by-products

Grobbelaar explains that lime slurry is generated as a byproduct in the acetylene production process from the reaction of calcium carbide and water. The lime is separated from the residual process water and recovered for use in other industries and applications. Its applications include acting as a flocculating agent in water treatment, pH control, cement manufacture and as a soil stabilising agent in road construction. Air Products disposes the lime slurry in a responsible manner by ensuring it is supplied to downstream users who can add further value by using it in such applications, thereby avoiding the need for disposal.

Solid Waste Recycling

A comprehensive solid waste recycling project that is run at the facility ensures that solid wastes from maintenance and production activities are separated at source. Waste products such as metals, plastics and paper products are collected by certified recyclers on a regular basis. As with all Air Products facilities, employees are committed to recycling in both the production and administration areas.

Grobbelaar concludes by saying: “The main reasons for the centralisation of the acetylene plants were to improve the technology and processes, establish a secure supply and improve customer service. We have achieved this, but we are extremely thankful that this was also an opportunity for Air Products to lead the way in creating a state-of-the-art, sustainably sound, acetylene plant. We strive to be the leader, not only for our customers, but also for our own environment and the company’s sustainable performance.”

For more information on Air Products, visit www.airproducts.co.za

 

Today’s necessity for commercial and industrial battery storage solutions

Image: IMPower

Commercial and industrial battery storage solutions can revolutionise the way an organisation consumes energy. Business energy costs are an ever-increasing frustration and account for a large portion of its bottom line. Investing in the appropriate battery storage solution can save businesses a great deal of money, transforming their energy cost profile and ultimately its profit margin.

Batteries are effective in the following scenarios:
  1. Curtailment reduction/deferral: Storing excess generation for use when it is required.
  2. Arbitrage: Displacing “peak” energy consumption and therefore peak energy costs. This means substituting solar energy or even cheap “off peak” grid energy for “peak” grid energy, so one can benefit from the cheaper tariff. This is called energy arbitrage. For instance, charging the battery at R1 per kWh during off peak times and subsequently discharging this energy during peak times when energy rates would have been R2.50 per kWh. In this case, one is saving R1.5 per kWh for the energy required to recharge the battery.
  3. Backup: This ultimately means providing electricity when the grid is off. This is remarkably similar to mini or micro-grid solutions where the solar PV and battery system operate as a “stand-alone” energy supplier to the off taker. To save costs, these systems are typically only designed to provide power to essential loads such as emergency lighting, security, and servers.

Sizing a battery backup system:

The size of the solution is contingent on the number of appliances the business or facility requires during periods when no power is available from the grid.

When determining the energy usage of an entity’s appliances, it remains critical to differentiate essential load items such as lights, security systems, fridge, freezer, TVs and internet routers from heavy load items such as geysers, stoves, aircons, and pumps. By adding together all the essential load items the business requires to operate during a power outage, the peak power requirements can be determined. Based on these figures, the power rating of the battery storage system is identified and installed.

Battery sizing is a balancing act, with organisations requiring generous electrical reserves for power outages. To calculate the battery requirements, one first needs to ascertain how many kilowatt-hours (kWh) the facility requires to store. Battery manufacturers and distributors often have online calculators to assist solar installers and customers simplify the calculation process, but the standard calculation for power requirements is typically: Watts = Amps x Volts.

Associated costs

Tesla recently released the new residential Powerwall system. For R166 800, you can get 13.5kWh of stored energy, delivered at 7kW peak or 5kW continuous power, which is roughly in line with approved SSEG (small scale embedded generation) regulations for grid-tied residential solar PV and batteries.

13.5kWh can power a typical 2- or 3-bedroom house (drawing 5kW) for roughly 2 – 3 hours and Tesla have clearly sized this system as backup for load shedding. Bigger houses or longer outages may require a second or even third unit, depending on one’s energy needs.

According to the CSIR (1) (https://businesstech.co.za/news/energy/367714/south-africas-load-shedding-horror-show-in-3-graphs/), ESKOM had 530 hours of load shedding in 2019. Assuming they were all 2-hour slots, that resulted in 265 instances of load shedding for the year that the Powerwall needed to operate and supply one’s house with power. That consequently works out to approximately R630 per load shedding event or R315 per hour, which excludes the cost of charging the battery of approximately R20 for a full charge.

Powerwall is guaranteed for 10 years. Therefore, if ESKOM maintains the abovementioned level of load shedding (R630), including the cost of charging the battery (R20), over the decade, one would have paid R65 for both the device and the charging thereof, equating to R65 per load shedding event or R32.50 per hour to have electricity at their house during load shedding. At typical tariffs of R1.50 per kWh, that same 5kWh would have cost only R7.50 for the hour in 2020, and would escalate to approximately R20 in 2030, meaning that the energy from the battery is considerably more than the price that one is paying the municipality.

However, batteries are not priced to compete with grid-tied energy systems. One is paying for the convenience of having power available when the grid fails. With working from home becoming the new normal, there is an ever-increasing need for a consistent supply of electricity at home to run work equipment and a stable internet connection. When considering battery backups, one must also consider the opportunity cost of not being able to work during load shedding hours. A measured commercial decision takes into account the cost of reduced operational productivity and revenue generation capabilities when electricity is not available. The advantages of having this power available during outages ranges from comforts like making your coffee to running your entire business online.

The same principle applies commercially. However, in this instance, a comparison is drawn between the cost of the battery versus the loss revenue incurred if a battery is not utilised. Tesla has a commercial and industrial (C&I) product called the Powerpack. The smallest system will cost R12m for 1mWh (1000kWh) of stored energy, delivered at 250kW (for 4hours) or 500kW (for 2 hours) continuous power. This system capacity has been purpose made for use in offices or shopping centres. These businesses must consider the loss of revenue during each of these 265 load shedding events per year for the next 10 years. Using the same logic as above, the powerpack will cost approx. R2 300 per hour to provide power to a medium sized shopping mall, allowing business as usual, without the maintenance and fuel expenses of a typical backup diesel generator.

Battery storage requires a practical approach that reflects the individual business requirements of an entity. Any commercial or industrial entity must consider the loss of revenue during each of the above mentioned 265 load shedding events per year for the next 10 years. Businesses seeking to transform their energy cost profiles should look at investing in an appropriate battery storage solution that will significantly reduce business costs, and ultimately improve profit margins.

New investors and expansions happening in Mpumalanga mining sector

Image: Anglo American Plc
Sector highlights:
  • Afrimat is looking to expand into Mpumalanga.
  • New investor Menar has two coal mines in the province.

Afrimat is listed on the JSE in the “Construction and Building Materials” section, but the company has shown an appetite for acquiring mines in order to diversify. In May 2020 Afrimat made a bid for control of Unicorn Capital Partners (previously Sentula Mining) which controls the Nkomati anthracite mine in Mpumalanga.

The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons, and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%.

Expansions and new mines

The private investment and management company Menar, which is headquartered in Luxembourg, controls and manages two assets in Mpumalanga through Canyon Coal and Sitatunga Resources.

Extension projects are underway or planned at Phalanndwa colliery and De Wittekrans.

Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit.

Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coal-exporting region in the world. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon. Mining’s contribution to provincial GDP is 25.9% and the sector employs 53 000 people.

Training and employment in the sector

Most of the province’s mining companies are involved in training. The Colliery Training College (CTC) in Emalahleni is owned by a consortium of companies: Exxaro, Glencore, Kanga Coal, South32 and Izimbiwa Coal. The centre offers a broad range of artisan training, including auto electrician, fitting and turning and millwrights. CTC has been recognised as a leader in artisan training by the National Skills Authority.

Coal giant Exxaro, which runs five mines in the province, has committed R3.8-billion to
its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion.

After Exxaro Coal Mpumalanga’s transfer of its 50% stake in the Arnot coal mine to mineworkers at no cost, the workers received a further 5% “free-carry” because of the specifications of Mining Charter III. The mine thus becomes South Africa’s first majority worker-owned mine. Wescoal is the other shareholder and operator of the mine.

The opening in 2019 of Sasol’s Impumelelo Colliery south-west of Secunda was the final phase of an investment in new coal mines to replace three coal mines that had reached the end of their lives. Sasol produces 40-million tons of coal annually. Impumelelo, which will produce 8.5-million tons per year, cost R5.6-billion to build.

Anglo American has sold its thermal coal operations to Seriti, which is therefore the second-largest provider of thermal coal to Eskom, supplying almost a quarter of the utility’s annual coal requirements.

State coal company AEMFC (African Exploration Mining & Finance Corporation) runs a colliery at Vlakfontein near Ogies and is planning to develop other projects. South32 has four collieries and three processing plants in the province. The company has 4 860 full-time
employees and 4 400 contractors.

ArmCoal is a black-owned coal company that arose out of a deal between Xstrata Coal SA and African Rainbow Minerals Limited (51%).

Rich resources

Coal, platinum, gold and nickel are the province’s major mineral resources and all are still in demand. South Africa produces 75% of the world’s platinum, 80% of its manganese, 73% of its chrome and 45% of its vanadium.

Deposits of chromite, magnetite and vanadium are the basis of the ferro-alloy complex in Witbank-Middelburg (in the District Municipality of Nkangala) and Lydenburg (Mashishing).

Nkomati Mine was South Africa’s only pure-nickel operation before it was decided to place it on care and maintenance in preparation of closure. The underground mine was closed in 2015 and the open-pit operation will close in 2020.

Stillwater Sibanye is the new owner of the Burnstone gold mine near Balfour. Stonewall Resources runs the TGME Project, near the towns of Pilgrim’s Rest and Sabie. Stonewall has ambitious targets of going beyond production of 40 000 ounces from this and other historic mines in the area.

Having taken full control of its Barberton mines, Pan African improved its BEE position (Shanduka Gold is a 23.8% shareholder) and set about increasing its annual gold output to 100 000 ounces. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals.

Northam Platinum, which has assets on both limbs of the Bushveld Igneous Complex, has purchased the Everest mine from Aquarius Platinum. Everest is adjacent to Northam’s existing Booysendal mine.

Jubilee Platinum has sold its Smelting and Refining business in Middelburg to Siyanda Resources. Sylvania Platinum now has seven PGM recovery plants that extract chrome from tailings on both sides of the Bushveld Igneous Complex.

Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. Assmang, the joint venture between ARM Ferrous and the JSE-listed Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant where chrome alloys are made.

The Manganese Metal Company (MMC) in Nelspruit is the largest producer of pure electrolytic manganese in the world. MMC is owned by Samancor (51%) and Bilston Investments owns the balance.

 

The Adventure Province: Yours to explore

Image: Eastern Cape Parks & Tourism Agency

In June 2010 the world came to the Eastern Cape. Greece, South Korea, Germany, Uruguay, the Netherlands and Brazil and several other soccer teams from all over the world descended on Port Elizabeth. What made it possible for Port Elizabeth to host eight matches during the 2010 FIFA World Cup was the building of the Nelson Mandela Bay Stadium (pictured).

In the decade that has passed since then, rugby test matches and international rugby tournaments have been played there and the stadium and stadium precinct have become popular as sites for events, music concerts and product launches. Built on the site of the Prince Alfred Park, the 42 000-seater stadium is quite rare in being between two bodies of water, the North End Lake and the Indian Ocean. Prince Alfred Park was one of three large city parks built in the second half of the 19th century.

St George’s Park, in the centre of town, is famous for hosting South Africa’s first cricket test match in 1889. In 2017 the ground was again a boundary-breaker when South Africa hosted Zimbabwe for the first-ever day-night test match. The innovative lighting system deployed for the match will also allow for greater flexibility in lighting music concerts with lighting programmes that can be tuned to musicians’ needs.

The lighting at St George’s Park includes theatrics. Image: Maritz Electrical.

The FIFA World Cup created a surge in the number of foreign visitors to the country. The Eastern Cape hosted 260 000 foreign visitors in that year. However, studies show that the province is not attracting as many foreign tourists as rival provinces. This is somewhat offset by findings that when foreign tourists do visit the Eastern Cape, they tend to stay for longer than they do when visiting most other provinces. An SA Tourism fact sheet in 2018 gave a figure of 16 nights as an average stay.

Image: Nelson Mandela Bay Stadium

With regard to domestic tourism, the Eastern Cape’s 12.1% share of the pie is fairly close to the leader (17.2%) and it’s easy to see why. Unmatched beaches, the pristine Wild Coast and a wide variety of national parks and private game reserves make for a superb natural offering. Branding the province as the “Adventure Province” has helped in attracting bungy-jumpers, divers, abseilers and rock climbers.

The province’s growing events calendar is creating opportunities in the sector. Makhanda (formerly Grahamstown) hosts the National Arts Festival every year. It is an 11-day extravaganza of art, music, film, lectures, craft fairs and workshops. More than 200 000 people attend the event to watch 2 000 performances in 90 venues. A study five years ago found the economic impact of the festival to be R349.9-million.

Hobie Beach in Port Elizabeth is the main venue of the Standard Bank IRONMAN African Championship. Enthusiastic crowds line the route and the event boosts the local economy. The 2018 winner, Great Britain’s Lucy Charles-Barclay, defended her title in 2019 and earned a cheque for $30 000. Other popular events in Port Elizabeth include the Herald Cycle Tour and the Ocean Racing Series (a world championship).

Hotels, lodges and casinos

A new luxury hotel is being built in St Francis Bay. The 60-room St Francis Links Hotel by Mantis overlooks the dam on the golf course’s final hole and has views of the Indian Ocean and Kouga Mountains. The existing clubhouse of the St Francis Links Estate will provide facilities such as reception, restaurants and conferencing. St Francis Links is a regular award winner as a wedding venue and for its Jack Nicklaus-designed golf course.

The interior of the Eastern Cape is home to several high-end private game reserves such as Mount Camdeboo, Kariega Game Reserve and Shamwari, which recently announced a R370-million refurbishment programme.

Some luxury game lodges are located within national parks, such as the Gorah Elephant Camp, which is run by Hunter Hotels and forms part of the Addo Elephant National Park. Luxury brands sometimes create a chain for their customers, so visitors might stay at the boutique Summerstand Hotel in Port Elizabeth, No5 By Mantis, on their way to another Mantis property, the Oceana Beach and Wildlife Reserve.

South Africa’s large branded hotel groups have a strong presence in the Eastern Cape but there are also regionally focussed groups together with independent hotels and resorts such as East London’s Blue Lagoon Hotel and Conference Centre, located in a prime spot at the mouth of the Nahoon River.

Kat Leisure Group’s offering extends from the Kennaway Hotelon East London’s beachfront to the Queens Casino and Hotel in Queenstown and properties in the mountainous interior of Katberg and Hogsback.

Premier Hotels has two hotels in East London, the Mpanga Private Game Reserve and it manages the East London International Convention Centre. The Radisson Blu in Port Elizabeth offers five-star luxury overlooking Pollock Beach.

Tsogo Sun has five Eastern Cape properties. In East London the four-star Southern Sun Hemingways is next to the Hemingways Casino complex and the city has one Garden Court, as does Mthatha. Port Elizabeth has a Garden Court and a SUN1, both near Humewood Beach.

The Courtyard Hotel, City Lodge Hotel and Road Lodge are close to one another on Port Elizabeth’s beachfront and allow the group to cater to three distinct markets with a total of 442 rooms. East London has a Road Lodge.

Sun International runs the Wild Coast Sun and the five-star Boardwalk Casino and Entertainment World in Port Elizabeth, which includes conference and events facilities.

The Eastern Cape: Yours to explore

The Eastern Cape uniquely caters to the whims of sun worshippers looking to bask in the regular sunshine, adventure-seekers looking for a thrill, nature-lovers looking to discover numerous wildlife, birdlife and plant species, as well as a solace for those looking to shut out the hassles of everyday life.

Everyone is able to find something that suits their needs here, from rugged beauty, a pristine coastline, premier surfing, to virgin bush and subtropical forests that exist as though untouched by time. This province is truly every explorer’s dream.

Rich heritage and culture

The Eastern Cape offers a unique cultural and heritage experience and is home to authentic Xhosa culture. It is the birth and the burial place of Nobel award-winning father of the nation, Nelson Mandela, and boasts the world-class Mandela Museum in Mthatha.

The Eastern Cape is positioned as the Adventure Province and offers a wide range of adventure activities, ranging from mild to wild. The province is also home to the highest commercial bungy jump in the world, the Bloukrans Bridge. It is Africa’s biggest bridge and stands proudly 216 m above the Bloukrans River.

The Eastern Cape has over 800 km of pristine coastline and is home to numerous Blue Flag beaches. The province is popular with international surfers and watersport enthusiasts and offers some of the best surfing spots in the world. The Wild Coast is a rustic, rugged and untouched stretch of coastline boasting amazing hiking trails, village experiences, cliffs and waterfalls.

The Eastern Cape is home to the Big 7 which comprises rhino, leopard, lion, buffalo, elephant, southern right whale and great white shark. The Eastern Cape offers you four national parks: Mount Camdeboo, Zebra National Park, Garden Route National Park and Addo Elephant National Park. The province is also home to various world-class private nature reserves offering unique beach and bush experiences.

The Eastern Cape is home to the Baviaanskloof Nature Reserve. The nature reserve has been declared a World Heritage Site by UNESCO. The Baviaanskloof is just under 200 km in length and is bounded by two mountain ranges.

Access

  • 3 airports (Port Elizabeth, East London, Mthatha)
  • 2 ports (Port Elizabeth and East London)
  • Road access – national roads (N2 and N6)

Explore the Eastern Cape! Visit the Eastern Cape Parks & Tourism Agency (ECPTA) for more information: www.visiteasterncape.co.za