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Water projects are stimulating economic growth in the Northern Cape

[Picture supplied by Sedibeng Water]

From providing water for an attempt on a world land speed record to laying on bulk water facilities for small rural municipalities — national, provincial and local authorities have a wide range of challenges to overcome in ensuring that life is sustained, and economic activity can thrive.

The dry area around Hakskeenpan in the Northern Cape is ideally suited to driving vehicles fast, but the world record land speed attempt is going to attract big crowds (and large technical support teams) and so a special effort has been made to provide infrastructure that will make sure that a reliable water supply is on tap. This investment will also secure the venue as a future site of similar open-air events or competitions.

Six municipalities in the Northern Cape have been identified for the eradication of informal settlements. A major obstacle in the municipalities of Sol Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and Ga-Segonyana is the lack of bulk water and sanitation facilities. Ring-fenced funding in terms of the Division of Revenue Act has been approved.

Two projects being run by the Provincial Government of the Northern Cape in conjunction with national government departments relate to water. Solar water heaters are being provided to residents of the Sol Plaatje Municipality and training for maintenance and repair is also being offered by the National Department of Energy. The National Department of Public Works is running a Shared Water Efficiency Programme on 30 Northern Cape provincial government properties. The provincial government has adopted a Climate Change Adaptation Response Strategy.

Water assets in the province

Two of South Africa’s great rivers meet in the Northern Cape at a point south-west of Kimberley. After absorbing the Vaal River, the Orange River continues westwards to the Atlantic Ocean and provides the basis for agriculture all along its path.

North of Kimberley, the confluence of the Vaal and the Harts rivers encompasses one of South Africa’s most intensely irrigated areas. The Vaal-Harts irrigation system is one of the most productive in the country, covering about 38 000 hectares with a variety of crops. Various water users’ associations (WUAs) representing particular areas (such as the Vaal-Harts) are recognised by the national water authority.

Two of South Africa’s biggest dams, the Gariep and Vanderkloof, also provide water for irrigation and hydro-electric power.

But many parts of the province are dry with sections of the north and north-west classified as semi-arid and arid. The southern Kalahari Desert receives rain (sometimes a lot of rain in a very short space of time) but the fact that mining is a primary economic activity in the dry regions of the province presents many challenges. The town of Kuruman is an exception in that it has a natural and prolific spring, the Eye of Kuruman.

The National Department of Water and Sanitation is consolidating the country’s water boards into nine regional water utilities. Some boards have merged to create new entities while others have extended their area of supply. Sedibeng Water now offers water supply services across three provinces, including most of the Northern Cape.

Sedibeng Water’s Central Laboratory, based at Balkfontein near Bothaville, is a SANAS-accredited facility. A new laboratory has been built to monitor the quality of water at the revamped Vaal Gamagara scheme. The laboratory’s four sections cover Instrumentation, Wet Chemistry, Sewage and Microbiology. When the laboratory gains SANAS accreditation, it will be the first in the province to have such a rating.

Projects

The Vaal Gamagara and Namakwa bulk water supply projects hold the key to boosting the mining sector and laying the foundation for expansion in outlying districts. The projects will give additional security to mines, businesses and households in the target areas.

Engineering group ELB Group has been appointed by Vedanta Zinc International to do a wide range of jobs at its new Gamsberg project. This includes laying a water pipe from the Orange River to the mining company’s processing plant.

The town of Springbok has been plagued by water supply problems for several years, with pipes failing on a regular basis. The copper mining company that used to see to water delivery operations in the area has closed down. The Namakwa water project will deliver water to about 11 000 households. Twenty-two villages in six municipalities will benefit from the Vaal Gamagara Refurbishment and Upgrading Project.

The existing scheme, run by Sedibeng Water, supplies about 22-million m³ of water to industry, mines, agricultural enterprises and domestic users, but demand is growing. Existing manganese and iron ore mines near Hotazel and Kathu are heavy water users and if any new mines are to be considered in the area, a reliable water supply is needed.

The cost of the project, which falls under the National Department of Water and Sanitation, is R18-billion.

Sedibeng Water has been selected as the implementing agent for the project and it will work with the Kgalagadi Joint Venture. Once the project is complete, the scheme will be able to deliver water to neighbouring country, Botswana.

Additional water sector resource links:
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President of the Republic of Sierra Leone to attend Mining Indaba 2020

Investing in African Mining Indaba, an international event that brings thousands of delegates to the CTICC.

President Bio was elected as the 5th President of the Republic of Sierra Leone in May 2018 and is popularly referred to as the “Father of Democracy” because of his contribution towards the restoration of democracy and attainment of peace in the country.

Sierra Leone has large reserves of diamonds, iron ore, rutile and bauxite as well as small-scale artisanal mining of gold and diamonds. The country possesses one of the largest rutile reserves in the world. Whilst mining contributes about 20% to the national GDP, it is said to account for around three quarters of the country’s exports.

Prudent management of natural resources is a stated pillar of the national Agenda for Prosperity, and there is a strong commitment to using the Extractive Industries Transparency Initiative (EITI) as a tool to bring reforms that will attract much-needed investment in Sierra Leone.

As part of their drive to attract investment, Sierra Leone will be exhibiting at Mining Indaba and their delegation will also include the Minister of Mineral Resources, Hon. Foday Rado Yokie who will be presenting a country case study – “The new direction for Sierra Leone’s mining sector” – where he will be reporting on the recently completed airborne geophysical survey and the achievements that the country has made in formalising the artisanal mining sector which has not only benefitted local communities, and women in particular, with a source of income but also the economy as a whole. Minister Yokie will also be participating in the West Africa panel discussion as part of the Intergovernmental Summit on Wednesday at Mining Indaba.

President Bio’s vision for the future of Sierra Leone is underpinned by his belief that the key to economic development lies in the investment in human capital – 20% of the national budget supports free, quality education, and women admitted to university to study science, technology, engineering and mathematics receive a full scholarship.

“We will have a healthier, better educated and highly skilled young population fit for the 21st century global economy, and that will lead and drive the country’s national development. They will be well-equipped to deploy science, technology and innovation which in term will attract investment.” Explains President Bio.

“The theme for Investing in African Mining Indaba 2020 is Optimising Growth and Investment in the Digitised Mining Economy – and His Excellency Julius Maada Wonie Bio is the new generation African leader recognising that innovation and technology with drive mining investment on the continent.” comments Tom Quinn, Head of Content for Mining Indaba.

The programme content for 2020 is geared towards exploring the key drivers of investment decisions within the African mining market and forging the future direction of the African mining industry. The Ministerial and Government programmed is set to attract some 38 ministers from across the African continent and beyond, cementing Mining Indaba’s reputation as the world’s largest mining investment event.

Following the success of the 25th anniversary, Mining Indaba 2020 is gearing to attract even more junior, mid-tier and major mining companies and even more investors with the aim of facilitating deal-making and investment opportunities.

2020 will also bring industry-leading content including the brand-new General Counsel Forum, Mining 2050, the Intergovernmental Summit, resource nationalism, innovations in technology, Battery Metals Day and the return of the popular Investment Battlefield.

Register for Investing in African Mining Indaba 2020

Impact of African Continental Free Trade Area agreement (AfCFTA) on Africa’s energy sector

The African Continental Free Trade Area agreement (AfCFTA) will constitute the world’s largest free trade area, consolidating an integrated market of 1.3 billion consumers with a combined gross domestic product (GDP) of approximately $3.4-trillion. The objective is to realise a continent-wide single market for goods and services with free movement of business, persons and investments.

The AfCFTA envisions to expand intra-African trade and intensify regional integration by successively eliminating tariffs on 90% of product categories. Removal of such trade barriers assures to not only improve efficiency, enhance competition, and incentivise development of strategic solutions to local challenges through regional economies of scale, but essentially advance the efficacy of resource allocation.

Successful implementation of the agreement is set to have a profound impact on the continent’s energy sector. Regional integration pertaining to energy represents a viable solution for emerging economies, to enhance their energy landscapes in furtherance of realizing social, environmental and economic benefits. Regional integration is pivotal to ensure that energy resources get from localities where they are most affordable, to where they are required.

Regional integration on account of the AfCFTA, is forecast to improve security of supply. Integrating operational reserves and installed capacity enables combined power systems from having to invest in additional facilities. In the event of emergency situations, regional collaboration provides an alternative source of supply for operating reserves and support thereof. Sharing with neighbouring countries can provide advanced system flexibility and reliability by expanding the supply portfolio of diverse energy resources, as opposed to exclusively relying on regional and established resources and supply infrastructure.

To address the continent’s existing energy infrastructure gap, African governments are proactively aiming to expand electricity access, deliver clean cooking solutions and pursue inclusive sustainable energy development.

While these efforts are locally supported through existing platforms such as the regional power pools, the AfCFTA provides an entirely new platform to expand these efforts regionally and pursue energy development to relieve the infrastructure restraint. For instance, one key anticipated outcome of the agreement is the acceleration of industrial output that would comparatively depend on the availability, affordability and security of energy supplies at a scale for industrial growth.

Improved energy trade and energy integration initiatives will boost economic development in Africa by reducing transaction costs and enabling market and economic collaboration, conclusively accelerating investment incentives. Furthermore, removal of impediments to intra-African trade by AfCFTA portends additional US public and private investment in Africa’s oil and power sectors, since increased investment is aligned with US policy as well as sound business consideration.

Africa is renowned for its abundance of renewable energy resources, which include wind, solar, geothermal and hydropower. These constitute a consequential impetus for regional energy integration. Progression and mobilisation of such clean renewable energy sources through regional collaboration efforts afford the continent’s citizens improved environmental quality. “Developing renewable energy resources to address the demand for energy in Africa, will be in the spotlight at the upcoming Africa Energy Indaba. The conference will discuss the AfCFTA and how investors and energy project developers can benefit from the agreement and how this can catalyse the development of renewable energy projects,” commented Liz Hart, Managing Director, Africa Energy Indaba.

The 2020 Africa Energy Indaba is set to assemble leaders from the regional and international power and energy community to discuss the status of critical projects, identify lucrative investment and development opportunities, how best to capitalise on those prospects, as well as to share industry best practice.

The 12th annual event will be hosted 3 – 4 March 2020 at the Cape Town International Convention Centre, South Africa.

Register to attend

 

SAI Global QPRO and SAIGAS acquisition deal closes

NOSA Group is pleased to announce the closing of the transaction to acquire QPRO and SAIGAS, the Assurance South African businesses of SAI Global, a recognised leading provider of integrated risk management solutions and assurance services.

This acquisition, through our wholly owned subsidiary Aspirata (trading as NOSA Testing, Inspection and Certification (TIC)), follows the acquisition on December 1 of the Deltamune Group, and enhances NOSA TIC’s position as the largest group of sector-focused laboratories in South Africa.

The newest acquisitions – QPRO and SAIGAS – are among the most highly regarded and recognised companies offering food safety assurance and certification in Southern Africa and neighbouring African countries.

Bringing these entities into our portfolio complements our overall process, retail food safety and occupational health and safety audit offerings, and will solidify our vision of being the ‘one-stop shop’ for Risk Management throughout South Africa, Africa and the Middle East.

SAI Global Assurance has welcomed the transaction, with John Rowley, CEO of SAI Global Assurance, saying: “We believe NOSA is the right partner for QPRO and SAIGAS, and that together they have an excellent opportunity to continue to develop on QPRO and SAIGAS’ track record with food safety auditing and microbiological testing, while also executing on existing customer commitments.”

For more information visit www.nosa.co.za

 

The President of the Democratic Republic of the Congo is confirmed to attend Mining Indaba 2020

His Excellency Felix Tshisekedi, President of the Democratic Republic of the Congo (DRC) [Source: Investing in African Mining Indaba - https://www.miningindaba.com/]

Investing in African Mining Indaba is excited to announce that His Excellency Felix Tshisekedi, President of the Democratic Republic of the Congo (DRC) has confirmed his attendance at the event taking place in Cape Town 3 – 6 February 2020. The President will be accompanied by a large delegation from the DRC including two newly appointed cabinet ministers, Hon. Eustache Muhanzi Mubembe, Minister for Energy and Hydrocarbons, and Hon. Willy Kitobo Samsoni, Minister of Mines.

President H.E. Felix Tshisekedi, became the leader of the Democratic of the Congo in January 2019, after the first peaceful and democratic transfer of power. He is known for his involvement and leadership in Union for Democracy and Social Progress (UDPS) and currently serves as the second vice president of the African Union.

The country’s large presence at Mining Indaba is aimed at positioning the DRC as a premier mining investment destination. His Excellence President Felix Tshisekedi will address Mining Indaba’s senior audience on the main stage on Monday 3rd February, the opening day of the event. The main stage will also see a DRC Focus session which will examine the rise of cobalt and how the government’s policy and new mining code positions the DRC in a positive investment light.

On 5th February Minister of Mines, Honourable Willy Kitobo Samsoni, will deliver a speech at the Intergovernmental Summit where he will highlight the Newly Developed Mining Code which was approved and signed in 2019.

“Mining Indaba’s Intergovernmental Summit is an open platform for African Ministers and senior government decision-makers from across the globe to debate issues affecting the mining sector and improve bilateral trade and economic relationships and it is very exciting for us that the platform is attracting such senior interest”, comments Simon Ford, Portfolio Director of Mining Indaba.

As one of the main government sponsors of the event, the DRC will also host its annual Breakfast session on Wednesday 6th February where an in-depth conversation about the latest mining developments in the country and gather the key public and private sector stakeholders for an open conversation on the future of mining in the DRC.

Secure your place now for the world’s largest mining investment event

Blueberries for job creation

Photo credit: iStock by Getty Images

In discussions about what crops to promote, Wandile Sihlobo of Agbiz believes that South Africa should focus on horticulture, partly because it is labour-intensive. He gives an example of blueberries, which need 2.64 workers for every hectare planted. There are signs that his advice is being followed: gross value rose from R15.8-million in 2008 to R1.25-billion in 2018 with the total area planted expanding four times.

Berries of all sorts thrive between George and Swellendam and sales of chippers in this area have grown because blueberries have to be vigorously pruned. This process produces lots of green waste which many farmers are choosing to process themselves. More than 70% of the blueberry crop is exported and two-thirds of production occurs in the Western Cape.

Swellendam, which lies beneath the Langeberg mountains, produces 90% of the world’s commercially grown youngberries, a crop of about 600 tons per annum. Youngberries are sensitive and labour-intensive.

The Agri-Processing Support Programme run by the Western Cape Department of Economic Development and Tourism (DEDAT) helps small, medium and micro enterprises (SMMEs) improve their business processes and get better access to markets. This is part of the broader Project Khulisa growth strategy that sees SMMEs as key for expanding economic growth.

New Western Cape Premier Alan Winde announced in his first State of the Province address in 2019 that the province intends making agriculture a bigger part of the educational offering available to pupils. He announced that to the traditional focus on STEM (science, technology, engineering and mathematics), two A’s (the Arts and Agriculture) would be added to create the concept of STEAMAC.

Nearly 30% of exports come from agriculture, with food and beverages contributing a further 24%. Key sectors in many of the province’s non-metro towns (such as retail and manufacturing) have a strong dependence on agriculture and agri-processing.

The Western Cape Provincial Government reached its target of 100 000 new jobs in agri-processing in 2016 but the sector has since been buffeted by bouts of avian flu and a once-in-a-generation drought.

The drought in 2015 and 2016 had severe consequences in Southern Africa. StatsSA noted the following price increases in that period: vegetables (12.7%), bread and cereals (16%), while nearly 400 000 ha less was planted in the country in 2017 than it was in 2014.

The agricultural sector has had to make the biggest adjustments to climate change. The Provincial Government introduced a Smart Agri plan to coordinate efforts to tackle the effects of climate change on agriculture.

The sector supports almost 10 000 farms and employs 214 000 people. Farming carried out on the Western Cape’s 13-million hectares of agricultural land comprises approximately 21% of South African commercial agriculture.

Seven of the 10 biggest export earners are either agricultural products or agri-processed goods. These are citrus, wine, apples and pears, grapes, fruit juice and tobacco.

The province’s climatic regions vary from Mediterranean around Cape Town and on the coast (where annual rainfall can be 2 000 mm at places) to the drier regions of the inland Karoo districts where annual rainfall figures can be below 150 mm. Just over three-million hectares of the province is cultivated and 270 000 ha are under irrigation.

The Breede River Valley is an especially fertile area for fruit. The Western Cape specialises in apples, plums, pears and cherries. Peaches and nectarines can be found in most parts of the province. Raisins are a speciality of the Vredendal area on the West Coast.

The Sandveld region on the West Coast is known as South Africa’s Potato Pantry. Citrusdal unsurprisingly does a strong line in citrus and, with nearby Clanwilliam, is also famous for rooibos and buchu.

Wheat is another of the province’s strong sectors: the Western Cape’s 310 000 ha planted to wheat represents 64% of South Africa’s crop. Japan is a major destination of the province’s maize production. In canola, the Western Cape is even more dominant, with 99% of the nation’s hectares (StatsSA).

Companies

The ostrich processing industry has two major players which merged in the course of 2019, subject to an agreement not to retrench any workers for a three-year period, a condition imposed by the Competition Tribunal. Between them, Klein Karoo International and Mosstrich have four abattoirs in three provinces and tannery facilities in Oudtshoorn and Mossel Bay. There are more than 400 registered ostrich farms in South Africa, the majority of which are in the Western Cape and the Eastern Cape.

Zeder Investments is the agricultural arm of investment holding company PSG Group. Zeder controls Capespan, which has a turnover of R7.6-billion across three divisions: farms, logistics and fruit. Zeder is also a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200 operating points.

Zeder also owns 27.2% of Pioneer Foods which makes and distributes many big food and drink brands across Southern Africa, including Weet-Bix, Liqui Fruit, Ceres, Sasko and White Star.

Caledon-based Overberg Agri is an unlisted company with a wide range of investments in several sectors, including mining, pet food and industrial fasteners. SSK (Sentraal Suid Ko-operasie) has outlets in the Overberg and in the Southern Cape as far east as George.

Resources:
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Your ultimate business connection in the Northern Cape

Image source: https://web.facebook.com/nocci.kimberley

Northern Cape Chamber of Commerce and Industry

Our heritage in brief

NOCCI was established on 22 February 2000 when the Chamber of Business and the Kimberley Afrikaanse Sakekamer amalgamated. At the time, these two organisations had served the business community of Kimberley for 120 years.

Membership advantages

A Chamber assesses and evaluates the needs of the local business community, especially regarding the need for services to small business at a reasonable cost:

  • Monitors developments at the local level
  • Mobilizes business opinion on local issues
  • Exerts a positive influence on the environment in which business operates and helps prospective members grow their business
  • Promotes and encourages the pursuit of a high standard of business ethics
  • Disseminates information that is useful to the business fraternity
  • Creates opportunities for improving business skills
  • Extends business contacts locally, regionally and nationally, and allows individual business people to share in the provincial and national business decision-making processes
  • Upholds the market economy and private enterprise system
  • Has committees which are ideal places for members of diverse interests to consolidate and unify their thinking as they work together – committees accurately sense the environment, process information and provide valuable guidance to the member
  • Holds functions and special events, allowing members to network and learn about interesting topics

Through affiliation with national organised business structures, the “Voice of Business” is representative as memberships grows. The “Voice of Business” is a binding force combining the skills and influences of men and women engaged in all forms and sectors of business.

Can you afford not to belong?

The increasingly complex business and social environment requires a comprehensive support structure to ensure the most favourable climate for the continued viable existence of individual businesses in a system of free enterprise. At the same time, the Chamber movement facilitates adjustment by business to those realities that cannot be altered.

Involvement in the Chamber movement bears abundant fruit for the well-being of each business. Thousands of successful business people can testify to the enrichment of their own skills and the development of a network base through active participation in the Chamber affairs. If you are a businessperson with vision, you cannot afford not to join the Chamber movement.

Contact NOCCI

[contact-form-7 id=”806″ title=”NOCCI”]

Visit the NOCCI website at www.nocci.co.za
Find more Northern Cape business and investment insight in the 2019/20 edition of Northern Cape Business (digital journal):

Water Quality Testing Laboratory sets high standards

Technicians from GSDM Water Quality Testing Laboratory during an awareness programme to schools.

The Water Quality Testing Laboratory is situated on the N17 corridor in Ermelo. This location is bounded by the Ekurhuleni Metro of the Gauteng Province to the west, Sedibeng District Municipality of the Northern Free State to the south-west, Ehlanzeni District Municipality to the north-east, Nkangala District Municipality to the north, Amajuba District Municipality to the south-east and eSwatini to the east.

The District Municipality’s Water Quality Testing Laboratory is the only SANAS-accredited, government-owned facility in Mpumalanga Province and is evidence of Gert Sibande District Municipality’s vision to be “A community-driven district of excellence and development”.

This is also in line with the National Development Plan (NDP) vision 2030 which is “To ensure that all South Africans have access to clean running water in their homes”.

The Water Quality Laboratory is an accredited facility meeting the requirements of the ISO/IEC 17025:2005. The centrality and the strategic location of this facility ensures easy accessibility by all stakeholders within the district and the neighbouring districts.

Services

Accredited Water Quality Testing Laboratory situated in Ermelo, Mpumalanga.

Informed by the need to improve water quality in the district, the laboratory was established in 2011 to guarantee safe drinking water provided to millions of citizens within the district according to section 9 (1) of the Water Services Act No. 108 of 1997.

The facility provides chemical analysis, microbiological analysis and physical analysis. These services are available to all stakeholders and customers, including local municipalities and industries. The price list for water quality testing offered is available on request.

In addition, the Gert Sibande Water Quality Testing Laboratory promotes water quality and care for water in communities through active involvement in awareness programmes offered by local municipalities in the district. It also promotes careers in science by providing opportunities to students in the form of in-service training.

The laboratory boasts the provision and delivery of superior laboratory services and aims to promote and support development and culture of scientific learning. The Gert Sibande Laboratory regards its clients as valuable stakeholders whose interests are a priority for the laboratory.

For more information, contact laboratoryservices@gsibande.gov.za or go to https://www.gsibande.gov.za/

Driekoppies Dam is the perfect event venue

The stunning beauty of the Driekoppies Dam and its surrounds has made it possible for the Komati Basin Water Authority (KOBWA) to convert the dam into a suitable site for commercial and private recreational use. This means that at a very low fee, the public can explore and discover the scenic beauty and entertainment attractions of the Driekoppies Dam.

In order to make the information about KOBWA’s trans-boundary nature more appealing, KOBWA uses the edutainment approach by hosting educational tours around the dam and sports tournaments. Here, people can be educated about KOBWA in a relaxed, enabling environment and this is accommodated at the Driekoppies Dam.

The Driekoppies Dam is a popular venue for music shows and private events such as picnics, braais, family fun days, baby showers, and weddings. This is because of its spacious entertainment area which overlooks the exquisite dam. Regulars are young entrepreneurs from areas surrounding the dam who host Sunday Sessions and the Food Market.

It also offers a venue for traditional authorities wishing to host cultural activities and traditional meetings. Bike rallies and fishing tournaments by various associations are also held at the dam.

KOBWA puts safety at the forefront of all planning. There is an implementable Emergency Preparedness Plan that involves every segment of society, from government agencies to traditional authorities at community level. This ensures that entertaining at the dam is not a risk.

The Driekoppies Dam is readily available for young people who live in the Nkomazi area as a way to promote entrepreneurship among young people. With so many interesting things to do, especially on weekends, the Driekoppies Dam is the perfect destination for any event.

About KOBWA

The Komati Basin Water Authority (KOBWA) is a bi-national company formed in 1992 through the Treaty of the Development and Utilisation of the Water Resources of the Komati River Basin. The treaty was signed by the Government of the Kingdom of Eswatini and the Government of the Republic of South Africa. The authority was tasked with designing, constructing, operating and maintaining two dams and associated infrastructure.

This resulted in the construction of Driekoppies Dam in Schoemansdal South Africa (1993 to 1998) and Maguga Dam in Eswatini (1998 to 2003). The two dams were constructed mainly to provide assurance of water supply to the irrigators in both member states.

Tourism is one of the spin-offs of the development of the Driekoppies and Maguga dams. There has been an increase in recreational activities around both dams.

Images courtesy of the Komati Basin Water Authority.

www.kobwa.co.za

 

South African sawmills are generating energy through co-generation

Forestry and paper

One of the biggest operations in the forestry and paper sector in Mpumalanga Province is Sappi’s Ngodwana mill. The mill produces 330 000 tons of paper pulp for its own consumption, 250 000 tons of dissolving wood pulp (DWP) and 380 000 tons of paper (newsprint and kraft linerboard used for packaging) annually. Exports account for 70% of the mill’s product.

Ongoing investment at Ngodwana Mill will contribute R13-billion to the provincial economy over 20 years. Sappi’s other large facility in the province, the Lomati Sawmill in Barberton, produces kiln-dried Southern African pine lumber from sawlogs supplied by Sappi Forests.

The mill generates its own energy through co-generation (steam and electricity from renewable and other sources). In 2017 Sappi built a sugar extraction demonstration plant at Ngodwana. Findings from the experiment will help to improve the process of extracting bio-renewable chemicals. Sappi is partnering with Valmet, a Finnish company. Other forestry companies are also looking into energy generation, including AFCOL.

Mpumalanga has 40% of South Africa’s forestry resources. This fact presents an opportunity to exploit the sector’s byproducts in the biomass-to-energy field.

The Zebra Pellets plant in Sabie is to be converted by national utility Eskom into a torrefied pellet plant. The wood will be provided to the plant (owned by the Industrial Development Corporation) and then heated without the use of oxygen (torrified) which creates a coal-like product without the carbon.

Mpumalanga has the ideal climate and topography for forests. Forestry accounts for about 8% of Mpumalanga’s gross domestic product. The sector comprises logging, saw-milling, wood product and pulp and paper manufacture. Pulp and paper are the main exports, along with sawn lumber, wood chips and wattle extract. Most sawn timber in South Africa is used in the construction sector.

[iStock by Getty Images]
Sabie and Graskop represent the hub of the industry, but commercial forests are also found to the east and south along the Swaziland border. About 11% of the land mass is forested, with 4% of that being natural forest. The province is the national leader in total hectares under forest (514 000 ha) and in export earnings.

The MTO Group, which has 39 900 ha of plantation under management in the Lowveld, teamed up in 2018 with mountain-bike enthusiasts of White River and Nelspruit to develop a set of trails through the hilly landscape of the area.

Plans to develop an Agriculture and Forestry Technology Park are being drawn up by the Provincial Government of Mpumalanga. The Mpumalanga Economic Growth and Development Path (MEGDP) intends to expand the industrial base of the provincial economy, with a focus on beneficiation, agri-processing and value chain development.

When forestry managers, contractor and forestry equipment suppliers gathered at the biannual Focus on Forestry conference in White River in 2019, the theme was “Bridging the digital divide in the African forestry sector”.

Sustainability is a key area for companies in the forestry sector and advances in the Internet of things and AI are being keenly monitored for ways to enhance margins in an environmentally sound way.

York Timbers owns and operates five processing plants, including the including the largest sawmill and plywood plants in South Africa and it has 60 470 planted hectares. The company is considering investing in biomass energy generation. The Industrial Development Corporation (IDC) has a stake in York Timbers and a 42.6% share in Hans Merensky Holdings, a company with timber and processing interests in three provinces. Merensky is responsible for 20% of South Africa’s sawn pine lumber.

The Mondi Group has extensive forestry holdings in the province and has been working on introducing a higher degree of mechanisation in its operations. Mondi has also instituted an ecosystem management plan throughout its forestry operations with the intention of better managing the impact its work has on the environment.

Responsible forest management involves increasing the long-term productivity and preserving eco-system values in rural landscapes and protecting high conservation value areas such as wetlands. [Source: Mondi South Africa]
Although local demand is dwindling, the export market for pulp and paper is strong. Pulp production figures have been on the rise for several years and companies like Mondi are increasingly focusing on pulp export because of better margins.

PG Bison has a board plant in Piet Retief. Sonae Rauco runs large plants at White River and Panbult. Komatiland Forests, a 100%-owned subsidiary of state company SAFCOL, has big plantations in several districts. TWK is a R6-billion agricultural company with its headquarters in Mkhondo (Piet Retief).

Asset management company Global Environment Fund created Imvelo Forests and in 2015 the company investigated using thermal imaging to detect fires. Among the other private timber growers in the province are Pull Scar Timber Co, and United Forest Products.

Article source: Forestry and paper sector insight, Mpumalanga Business 2019/20 edition. Find more business and investment insight (digital journal):

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