Content
Operator Permit to the SAEMSEZ
Introduction of South Africa Energy Metallurgy Special Economic Zone Limpopo river is 30km away from the project site, South Africa Energy Metallurgy Special Economic which is the important water source for projects in Zone (hereinafter referred as “SEZ") is a national SEZ. special economic zone for energy and metallurgy founded according to the law of Special Economic Projects in SEZ : There will be built 20 million ton coal Zone passed through the legislation of South Africa parliament and the approval of Government of South washery, 3,000 MW thermal power plant, 5.1 million ton coking plant, 3 million ton steel plant, 3 million ton Africa, and enjoys the tax benefits of South Africa National Special Economic Zone and all preferential stainless steel plant, 1 million ton ferromanganese treatments of foreign investment policy encouraged plant, 3 million ton ferrochrome plant, 450 thousand by South Africa. South Africa Department of Trade and ton silicomanganese plant, 300 thousand ton Industry authorizes and issues the operation license Ferrosilicon plant, 450 thousand ton limestone plant. In SEZ, there will be built supporting government to Shenzhen Hoimor Resource Holding Co., Ltd. in administration service centers (business SEZ, to invest, develop, operate and manage the administration, customs, tax administration and other South Africa Energy Metallurgy Special Economic functions), employee's living quarters service center Zone. SEZ is located in Musina, Limpopo, South Africa, it covers an area of 60km2, and adjacent to the (dormitory, hotel, shopping mall, hospital and others) and comprehensive logistics service center of boundary of Zimbabwe and Mozambique, and the highway, railway and sea transportation (provide the large Coking-Coal open pit mining area in central whole-course point-to-point nonstop logistics service Limpopo. This area has more than 12 billion ton coking coal, and has rich iron and steel raw materials- for the project). mining resources within 200km, including 3 billion ton iron ore, 1.2 billion ton Chrome ore, 800 million ton manganese ore, 1 billion ton silicon ore, 500 million ton nickel ore, 5 billion ton limestone act.. The national railway, expressway and power supply network penetrate through SEZ. SEZ has a distance of 500km away from large port of Maputo.
Introduction of South Africa Energy Metallurgy Special Economic Zone In SEZ there will be built mining resource supply Metallurgy projects in SEZ such as Iron making center to provide the mining resources such as plant, ferroalloy plant, steel plant, stainless steel various furnace charges for the project plants in plant act. will open to the investors globally, to SEZ. The integration advantages of energy and introduce the best strategic investors for the metallurgy of SEZ projects are: Energy and project. We sincerely invite friends from common metallurgy production through-train process of industries to visit South Africa Energy Metallurgy coking coal mine → coal washery→ coking plant Special Economic Zone. We are looking forward to → power plant→ ferroalloy plant→ iron making work with industrial friends with complementary plant→ steel plant; the iron and ferroalloy melt advantages, seeking mutual development, to build are hot delivered for the steelmaking, thereby the most competitive global Energy Metallurgy greatly reducing the energy consumption of Special Economic Zone. metallurgy process. The advantage of such vertical full flow metallurgy process is unique and richly endowed by nature. South Africa Energy Metallurgy Special Economic Zone Management Co., Ltd. provides to the project investors with all preferential policies, guaranteed and competitive resource supply and supporting service facilities. SEZ has mining resources of various metallurgy raw materials, land and water resources, power plant, coke chemical plant, sewage treatment plant and other infrastructures.
Site selection of South Africa Energy Metallurgy Special Economic Zone
Traffic location map of South Africa Energy Metallurgy Special Economic Zone
Site selection of South Africa Energy Metallurgy Special Economic Zone
Planned surface map of South Africa Energy Metallurgy Special Economic Zone
Planning points of South Africa Energy Metallurgy Special Economic Zone
Planning Highlights of South Africa Energy Metallurgy Special Economic Zone
Planning points of South Africa Energy Metallurgy Special Economic Zone
Description for planning and design scheme of project in South Africa Energy Metallurgy Special Economic Zone
Description for planning and design scheme of project in South Africa Special Economic Zone for Energy and Metallurgy
Description for planning and design scheme of project in South Africa Energy Metallurgy Special Economic Zone
Description for planning and design scheme of project in South Africa Energy Metallurgy Special Economic Zone
Description for planning and design scheme of project in South Africa Energy Metallurgy Special Economic Zone
Airscape of project in South Africa Energy Metallurgy Special Economic Zone
Impression drawing of South Africa Energy Metallurgy Special Economic Zone
Impression drawing of Coking，Refractory & Limestone
Impression drawing of project in South Africa Energy Metallurgy Special Economic Zone
Impression drawing of Electric Power Plant
Impression drawing of project in South Africa Energy Metallurgy Special Economic Zone
Impression drawing of Ferrochrome & Ferromanganese
Ichnography of project in South Africa Energy Metallurgy Special Economic Zone
Ichnography
Macro-environment analysis
South Africa-Country profile •
It is located in the south of Africa, having a capital of Pretoria. It is one of BRICS countries. The economic aggregate accounts for about 20% of that of Africa.
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The land area is 1,220,000km2, and the national population is about 49,320,000.
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In 2011, the nominal GDP of South Africa was US 408200000000 dollars, the per capita GDP was US 8048 dollars, the actual growth rate of GDP was 3.1%, and the year-on-year growth of CPI was 5%.
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The output value of the primary industry, secondary industry and tertiary industry accounts for 12%, 21% and 67% of GDP respectively. The mining industry, manufacturing industry, agriculture and service industry are the four pillars of economy in South Africa, and account for 21.2%, 16.3%, 14.5% and 13.4% of GDP respectively. But meanwhile, the rate of inflation and unemployment rate run at high level.
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In 2004-2007, it kept 5% of average annual growth rate. In 2007-2011, the actual GDP was averagely grown by 3.6%.
Overview on condition of mineral resources in South Africa The main resources in South Africa are concentrated in all provinces of the north. There are 170 main mining projects (including all stages concerning the grass roots, exploration, feasibility study and operation) through the project accumulation of Ministry of Mines and inquiry of Intierra system, including 18 iron ore projects (mainly concentrated in Limpopo), 111 coal ore projects (mainly concentrated in Limpopo, Mpumalanga and kwazulu-natal), 15 manganese ore projects (mainly concentrated in Northern Cape), 15 chromium ore projects (mainly concentrated in North West, Limpopo and Mpumalang), and 11 nickel ore projects (mainly concentrated in Limpopo and Mpumalanga). Limpopo
North West
Northern Cape
Mpumalanga
Kwazulu -natal
Gauteng
Iron ore
9
0
6
2
0
0
Coal ore
14
0
0
78
18
1
3
8
2
1
1
7
0
3
0
1
3
1
2
0
1
Mangane 0 se ore Chromiu 4 m ore 4 Nickel ore
Overview on condition of mineral resources in South Africa-Iron ore
Overview on condition of mineral resources in South Africa-Coal ore
Overview on condition of mineral resources in South Africa-Manganese ore
Overview on condition of mineral resources in South Africa-Chromium ore
Overview on condition of mineral resources in South Africa-Nickel ore
Overview on condition of mineral resources in South Africa
Legend Coal Iron Manganese Mittal steel plant
Nickel Chromium Scaw Metals steel plant
Evraz Highveld steel plant
Mittal steel plant
Mittal steel plant
Overview on condition of mineral resources in South Africa
It can be seen through the above diagram that, the resource distribution in South Africa mainly has the following characteristics: The resources in Limpopo, Northern Cape and Mpumalanga are relatively rich, including: 1. There are rich coal and iron resources in Limpopo, and the coal resources are mainly concentrated in the north of this province, most of which are in the exploration stage and have the big development potential. The iron ore resources are mainly concentrated in the feasibility study stage (except for Thabazimbi iron core in production). A certain nickel and chromium resources are provided in the middle part and south of this province.
2. The main resources in Northern Cape are manganese ore (in production and exploration) and iron ore in production. The coal resources are relatively lacked in this province. 3. There are a lot of coal resources (basically in the almost stripper stage) in Mpumalanga, and meanwhile, a few iron ore and manganese ore resources are provided.
Main metallurgy ore type-Iron ore
The iron ore in South Africa is mainly distributed in Limpopo and Northern Cape, wherein the iron ore project in Northern Cape is mostly mature project in production (for example, Sishen iron ore, is one of top ten iron ores in production in the world), and the iron ore in Limpopo is mainly concentrated in the previous pre-feasibility study and feasibility study stage.
Table: Main iron ore in production in Africa Name of iron mine Sishen Khumani Kolomela Tonkolili Tebessa Liberia mines Beeshoek Thabazimbi Marampa
Iron ore concentrate in Grade (Fe %) 2011 Output (t)
Iron ore concentrate in 2010 Output (t)
Total resource reserve
Net content of Fe
(t)
(t)
South Africa
1,760,400,000
1,020,751,000
57.984
38,900,000
41,337,000
South Africa
572,250,000
369,032,000
64.488
8,725,000
8,765,000
South Africa
365,700,000
235,298,000
64.342
1,500,000
Sierra Leone
12,751,000,000
3,982,902,000
31.236
1,300,000
Country
Algeria Liberia
1,300,000
1,100,000
14,000,000
8,330,000
59.5
1,300,000
South Africa
121,550,000
77,394,000
63.673
960,000
521,000
South Africa
36,900,000
22,834,000
61.88
903,000
2,047,000
Sierra Leone
1,078,000,000
336,983,000
31.26
800,000
Note: Other four iron ores in production in South Africa are located in Northern Cape, except that thThabazimbi iron ore is located in Limpopo.
Main metallurgy ore type-Iron ore
Legend 900,000t iron ore concentrate was produced in the eighth iron ore in production in Africa in 2011.
Iron ore in the feasibility study stage Coal Iron Manganese Nickel Chromium
Main iron ore in production in South Africa
Main metallurgy ore type-Iron ore
Iron ore project 1. Palabora project ● It is located in the east of Limpopo. ● The project is in production stage, the iron ore resource is about 240,000,000t, and the average grade is 56%. ● The annual capacity of iron ore is 4,500,000t. ● Currently, it has transportation capability of railway and port. 2. Ferrum Crescent project ● It is located in the west of Limpopo, and close to the large coal field in the east of Limpopo. ● The project is in the feasibiiyt study stage, the iron ore resource is about 307,000,000t, and the average grade is 26.9%. ● Ferrum Company is a listed company in Australia, London and Johannesburg. Up to May 8, 2013, its market value in the ASX (Australian Securities Exchange) was 4,860,000 Australian dollars.
Main metallurgy ore type-Coal ore
The coal ore resources in South Africa are mainly distributed in Limpopo, Mpumalanga and Kwazulu-natal. Wherein the resource of coal field in Limpopo accounts for above 40% of coal resource in South Africa (most of which is in the exploration stage, and have relatively big resource potential), a lot of coal can provide the high-quality power station coal and metallurgical coal, and the only disadvantage is that the infrastructure condition is relatively poor. In the past, Kwazulu-natal was the flourishing coking coal flourishing, and currently, the reserves are relatively few, and the inferior coal is mainly provided, therefore, it is difficult to exploit.
The coal field in Mpumalanga is in the relatively mature stage. The coal output of this province accounts for 83% of total coal production. However, most of projects have been exploited for a relatively long time, and the exhaustion of resource is faced. It is predicted that the biggest Witbank Coal Field in this province will be used up in 20 years.
Main metallurgy ore type-Coal ore Large undeveloped coal field (including power coal and metallurgical coal) having big potential
Legend Legend Coal Iron Manganese Nickel Chromium
Relatively mature coal field which is almost exhausted The power coal is main coal field, and thus, is exploited with difficulty.
Main metallurgy ore type-Coal ore
Coal project 1. Coal project of Universal Coal ● Two coking coal projects are located in the north of Limpopo. ● The project is in the exploration stage, and the resource is 1,900,000,000t (exploration + control + speculation). ● It is predicted that the annual capacity is 10,000,000t. ● Universal Coal Company is registered in England, listed in Australia, and is engaged in the coal exploration and development in the east and northeast of South Africa. And now, its share price is 0.089 Australian dollars. 2. Coal ore project of Resource Generation ● It is located in the north of Limpopo, and is Waterberg Coal Field. ●The project is in the exploration stage, and the resource is 3,700,000,000t (which his mainly the power coal, including part of soft coking coal). ● The annual capacity of the first stage is 6,000,000t, and the annual capacity of the second stage is 25,000,000t. ●Resource Generation Company is a coal exploration and development company listed in Australia and South Africa. Now, its share part is 0.39 Australian dollars, and the market value is about 100,000,000 Australian dollars.
Main metallurgy ore typeManganese ore Now, the manganese ore resources in South Africa are rich, and account for about 75% of total quantity in the world. Most of deposits are located in the manganese ore belt of Northern Cape. According to the United States Geological Survey, it is estimated that the reserves of manganese ore in 2011 in South Africa are 15,000,000,000t. South Africa is the biggest manganese producing country in the world, and 3,400,000t manganese was produced in 2011.
The manganese ore in South Africa is mainly concentrated in Kuruman, Northern Cape. This mine area spans 150km ore belt, from Postmasburg in the south to Kalahari in the north, and has an area of 2331km2. Kalahari mine area was found in the 1960s and exploited, which mainly produces metallurgical manganese ore, and meanwhile, accompanies the hematite. The manganese content is 30%-50%. The average grade is 42%, and the phosphorus content is low (0.03-0.05%). The manganese ore resources in South Africa are rich, but the infrastructure construction needs to be strengthened. The port specially used for manganese export in South Africa is only Port Elizabeth, and this port has a distance of more than 1000km away from the mineral city. Meanwhile, the stuffing capacity is also limited, and now, it operates at a speed of 4,400,000t/y, and it is estimated that it is difficult to exceed 6,000,000t/y throughput.
Main metallurgy ore typeManganese ore
Legend Coal Iron Manganese Nickel Chromium
The manganese ore which is in production and explored in South Africa is mainly concentrated in the manganese ore belt from northwest to southeast.
The main metallurgical mineral:—manganese ore
Manganese project
1. CITIC United Asia manganese project •
The project is located in the manganese ore belt in Northern Cape
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It is applying for mining rights. The amount of resources is 100 million tons and the average grade is 36%
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CITIC United Asia (CITIC Group wholly-owned subsidiary) holds 51% stock equity of the project and South African Chinese enterprise Eagle Canyon International Group Holdings (South Africa) Limited holds the 49%.
2. Kalagadi manganese project •
The project is located in the manganese ore belt in Northern Cape
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The project is in production with the control-level resources of 22.65 million tons and the estimated-level resources of 15.66 million tons.
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Underground mining, with an annual output of 3 million tons of raw ore and the average grade of 38.55% (2013)
The main metallurgical mineral—chrome ore and nickel ore
Chrome ore South Africa is rich in chrome ore. the chromite deposits are mainly distributed in the Bushville complex in the northeastern region. The ore body is mainly layered and the amount of resources is about 3 billion tons accounting for over 60% of the world's total reserves of chromite.
Nickel ore South Africa is the country in Africa with the richest nickel resource whose nickel production accounts for about 2% of global production. Nickel is produced from the Bushville complex with the lower grade. It is often accompanied with platinum, chromium and other metals with the resources amount of 2.5 million tons.
The main metallurgical mineral—chrome ore and nickel ore
Legend Coal Iron Manganese Chrome Nickel
The main metallurgical mineral—chrome ore and nickel ore
Chrome ore project 1. Sinosteel-Limpopo chrome ore project •
The project is located in the south of Limpopo
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The project is in production with the chrome resources of 50 million tons
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The production of raw ore is 600,000 tons / year and ferrochromium smelting is 360,000 tons / year
2. Sinosteel-Samanco chrome ore project •
The project is located in the north-west of Mpumalanga
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The project is in production with the chrome resources of 70 million tons
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The production of raw ore is 1,000,000 tons / year and ferrochromium smelting is 360,000 tons / year
Global demand of steel and ferroalloy 1.Global steel demand in 2013 was 1.455 billion tons, up by 3.2% caompared with 2012 (International Steel Association estimation) with the growth rate increased by 1.1%. 。 2.Africa's steel demand in 2013 was 27.3 million tons, up by 7.7% with the growth rate increased by1.9%, accounting for about 1.88% of global steel demand. As for different regions, the demand of EU-27 returned to growth in 2013 increasing by 2.4% to 148.1 million tonnes; demand of the Commonwealth of Independent States increased by 3.9% to 57.4 million tonnes with the growth rate decreasing by 3.1%; demand of North American Free Trade Area increased by 3.6% to 135 million tonnes with the growth rate decreasing by3.9%; demand of Central and South America increased by 6.3% to 50.4 million tonnes with the growth rate increasing by 2.5%; demand of the Middle East increased by 5.9% to 52.8 million tonnes with the growth rate increasing by 2.4% ; demand of the Asia-Pacific region increased by 2.8% to 948 million tons with the growth rate increasing by 0.4%. Except the North America, the global steel demand of growth rate in major areas all increased in 2013. In summary, the growth rate of global steel demand in 2013 is between 4% and 4.5%. The emerging areas such as the Middle East, Southeast Asia, Africa and Central and South America has a more obvious growth, especially the Southeast Asia. 3.The demand for steel in South Africa in 2012 was about 6 million tonnes. 4. The total amount of chromite resources in the world is more than 12 billion tons but with extremely uneven distribution. It is mainly distributed in South Africa, Kazakhstan, and Zimbabwe. Chrome is mainly used for the manufacture of stainless steel so the production of stainless steel is directly influenced by chrome ore demand. In recent years, the stainless steel industry in China went from the rapid growth into a smooth adjustment period. The stainless steel demand in China will exceed 22 million t in 2020. The consumption demand of chrome ore will continue to grow significantly. It is expected that the chrome demand around the World will present to grow in the next few years, and the demand areas will still be concentrated in the Asian market dominated by China.
Steel products demand Table of steel consumption in different industries in South Africa 2011 Flat steel products
Long steel products
Building steels
36%
Building steels
46%
Tube and pipe
24%
21%
Package
16%
Automobile manufacturing Mine, energy, water, chemical and natural gas Furniture and home appliances manufacturing Machinery and equipment manufacturing Agriculture
13%
Machinery and equipment Mine, energy, water, chemical and natural gas Automobile manufacturing
4%
Agriculture
4%
3%
Furniture and home appliances manufacturing
3%
Transportation
1%
2%
1%
Data sources：BSi Steel Sasfin Showcase presentation, May 2012
19%
7%
Steel production At present, steel products production in South Africa is about 10 million tons (unofficial statistics); The crude steel production in South Africa is 7.12 million tons in 2012 (The data published by South African Iron and Steel Association South African Steel & Steel Institute published shows that the steel products production is about 800 million tons), accounting for about 60% of Africa's overall production; Steel imports in South Africa in 2012 were 850 000 tons with year-on-year decrease of 15.8% (100.47 million tons in 2011with year-on-year increase of 52.4% is the peak of the 36 years). The importing country is Korea, China, China Taiwan, Turkey and so on. At present, South Africa's domestic demand for steel is 600 million tons and parts of the domestic production of steel products are exported.
Steel production South Africa has a complete range of manufacturing industry with more advanced technology. The production value of manufacturing industry accounts GDP for nearly 20% among which the iron and steel industry is the most significant with six major steel joint company and more than 130 steel enterprises.
（A） ArcelorMittal (South Africa) 1. Situation of products The production of liquid steel in 2011 was 5.45 million tons decreasing by 4% compared with 2010 production of 5.67 million tons. The rate of capacity utilization fell from 71% in 2010 to 68% mainly affected by four major production disruptions. 2. Situation of production There are four production plants with the main products of flat steel and long steel. 2.1 The main production of flat steel is located at Vanderbijlpark and Saldanha factory under Mittal, with an annual capacity of about 5.6 million tons of liquid steel, which makes Mittal South Africa become the largest flat steel supplier in the African continent. The Vanderbijlpark plant has an annual capacity of 4.4 million tons, which is basically able to meet 78% of the market demand for flat steel products in South Africa, including hot-rolled sheet, hot-rolled round, cold-rolled, hot-dip galvanized, electro-galvanized, color coated steel sheet, tinplate coils and steel sheets. The Saldanha plant is the most advanced and environmentally friendly steel mill in the World producing ultra-thin hotrolled coils for domestic and some high-end export markets. The plant has an annual output of 1.2 million tons of steel. 2.2 Newcastle and Vereeniging plant under Mittal South Africa supply about 50% of the long steel products of the market in South Africa, as well as some export products. The two plants together have the capacity of 2.2 million tons of steel, of which 20% is basically used for export. In addition to the above-mentioned capacity, Mittal South Africa also has 1.6 million tons of rolled products, 90,000 tons of seamless steel pipe and 20,000 tons of forging products. 80% of the long steel products of Mittal South Africa are from the Newcastle factory which is a traditional integrated iron and steel plant, and Vereeniging factory mainly produces electric furnace. 2.3 Mittal South Africa also owns the coke plant and the chemical products business in Tetris.
Steel production （B）Evraz Highveld steel and vanadium factory Highveld is the second largest steel mill in South Africa whose parent company Evraz Group is one of the largest vertically-integrated producers of steel, vanadium and mining industry. The corporate owns the Hantai magnetite mine in Limpopo, South Africa, and the mine is located in the area of Roossenekal, named as Mapochs. The mine product is used to supply its steel mills in eMalahleni (formerly known as Witbank), Pumalanga to produce vanadiferous steel slag, iron and steel. In 2011, the steel output fell by 13% to 670,000 tons compared with 770,000 tons in 2010. The decline in production was mainly because of the disruption of power supply caused by the conversion of No. 7 furnace into open slag pit technology and two-week strike of Seifsa suppliers. （C）Scaw Metals South Africa Scaw Metals South Africa is a leading manufacturer of integrated steel products, mainly serving for mine construction and other industrial areas. The group mainly contains four main business areas: dyed steel balls, wire products, castings and rolled products. Its main production is located in South Africa and Australia, as well as part of the smaller business operations in Zimbabwe and Zambia. In 2012, its steel product output was 677,000 tons decreasing by 5% compared with 2011.
Steel production Location map of existing steel mills in South Africa Scaw Metals Steel Mill
Mittal Steel Mill Mittal Steel Mill
Evraz Highveld Steel Mill Mittal Steel Mill
Mittal Steel Mill
Development plan The Iron Ore and Steel Report issued by South African Cabinet Office accociated with Working Group (the report has been adopted by the South African Cabinet in December 2012) Recommends: Due to the rapid industrial development in South Africa, it will help to increase the competitiveness in the field of steel to construct a new steel mill. The South African Industrial Development Corporation (IDC) has completed a pre-feasibility study on the new mill project, which concluded that new steel would reduce the price of flat steel and long steel products in South Africa by about 10%. Another conclusion is that the Ministry of Economic Development should revise the South African Antitrust Act to ensure that major steel producers enjoy preferential policies in iron ore and other industrial chains but the downstream users will also be benefited. Moderate power will be given to the relevant authorities to determine the pricing mechanism, compliance regulation and sanctions against noncompliant objects. An additional proposal in addition to the feasibility study report ensures that the domestic market in South Africa has sufficient scrap iron and steel supply and works to reduce waste and abuse of the scrap.
Infrastructure 【Road】South Africa has the longest road network in Africa extending in all directions. The network not only covers the country, but also connects with neighboring countries, which makes the travel very convenient. The total mileage is about 754,000 km. 【Railway】The railway network and road network in South Africa supplement each other constituting a complete land transport system. The railway connects to Zimbabwe, Mozambique, Botswana, Zambia, Malawi and other countries with the total mileage of 34,000 kilometers, taking the tenth in the world and accounting for 35% of the total railway mileage in Africa. 95% of the railway is used for freight under the management of Transnet. 【Air transportation】 The air transportation in South Africa is relatively developed with 10 existing major airports, respectively, located in Johannesburg, Cape Town, Durban, Bloemfontein, Port Elizabeth and other major cities. South African Airways is Africa's largest airline. 【Water transport】South Africa has the largest and most the most efficient sea shipping network with the most complete facilities in Africa with its 96% of the exports conducted through the sea shipping. The main ports include Richard Bay, Durban, East London, Port Elizabeth, Nqqura, Mossel Bay, Cape Town and Saldanha Bay, which are managed by the National Ports Authority under Transnet. 【Communication】The development level of telecommunications in South Africa is high and the telecommunications network has basically achieved datamation with data microwave and fiberoptic cable as the main transmission medium. Internet users are more than 8.5 million which is expected to break through 10 million by the end of 2012. The postal service is monopolized by the South African Post Office with advanced postal network and the business scope covering the whole country. 【Electric power】South Africa is a big country of electric power in Africa supplying 2/3 of all African power. There are 13 coal-fired heat power stations generating 88% of the total, a nuclear power station, two pumped storage power stations, 6 hydropower stations and 2 fuel power stations. In 2008, the annual electricity generation was about 238.3 billion kilowatts, and more than 95% of the electricity was supplied by the South African Electric Power Company (Eskom). But with the continuous development of the economy, the problem of electricity shortage in South Africa has become increasingly prominent.
Infrastructure Responsible institutions for railways and ports: The Transnet Group is the exclusive monopoly of the South African railway freight industry. The only shareholder is the South African government and is managed by the South African Government Public Enterprise. All of its related assets and operations management are owned and managed by their subsidiaries. Its subsidiaries include: freight rail companies, railway engineering companies, the State Port Authority and port companies. The Transnet Group's development plan is consistent with the South African National Infrastructure Development Plan. The plan mainly includes upgrading existing infrastructure such as ports and railways. Specific content will be prepared by Transnet Group to develop market demand strategy. The Strategic Plan for Infrastructure Market Demand was proposed by President Zuma in February 2012: The government plans to spend another 300 billion rand in seven years to build and upgrade infrastructure projects such as railways, ports and oil pipelines, of which 205 billion rand for railway projects and 151 billion for the development of freight railways. One of the major challenges facing South Africa is that the existing rail system has reached its service life. Due to lack of funding, 35% of the total mileage of the South African railway has been for long years out of repair. Only 3928 km of the road can run at full capacity. 。 In April 2011, Deputy Minister Cronin of South AfricanTransport Ministry said in Johannesburg: The South African government has approved a total investment of up to 970 billion rand to development plan of railway infrastructure. The plan will be launched in 2014 with a construction period of 18 to 20 years. At present, the South African Engineering Board has completed the project feasibility study and program development for procurement, financing, operation and maintenance, for which it takes reponsibility. According to reports, the project designs three important high-speed railway. current development: - the United States GE won the bid in the locomotive tender of Transnet, while requiring 37% of the localization; - another corporation China Southern Locomotive also won the bid; - China Development Bank provides 45 billion rand loans; - another joint venture company won the bid to build a railway line connecting Swaziland with the total of about 17 billion rand.
Infrastructure South Africa has eight major commercial ports: Saldanha Bay, Cape Town, Mossel Bay, Port Elizabeth, Ngqura, East London, Durban and Richards Bay。 The above ports are managed by the National Ports Authority, which is the affiliate of Transnet . Port function design: (1) Some design functions of the ports are primarily for bulk cargo, such as the Port of Saldanha serving for iron ore exports and oil imports; (2) the other is mainly for some certain important industries, such as Mossel Bay serving for the offshore oil industry; (3) There is also one kind that is to focus on a certain kind of freight as well as variety of import and export commodities. Durban Port was used to be the largest container terminal in the Southern Hemisphere (recently replaced by Jakarta), which is also the largest oil loading and unloading port in South Africa and has the capacity to handle other bulk commodity dry goods and mixed freight. Introduction of important ports 1-Richards Bay ：Founded in 1976, the main coal export port in South Africa, is also the world's second largest bulk port. It has a total of 21 berths with the maximum depth of 19.5 meters. There are various loading and unloading equipment such as shore tackle, ship loader and tugs. The maximum weight of ships which can berth against the port is 37 million tons. In 2010, the annual throughput of the port was 85 million tons (which is planned to be expanded to over 100 million tons in 2019). The port has become the most important place to load and unload bulk cargo dry goods, dealing with dry bulk with the growing types, new bulk stock and bulk cargo. Bulk cargo handling is concentrated in the following four areas: coal exports; bulk cargo; dry bulk and wet bulk. A large part of the freight business at Richard Bay come from the port of Durban with the relative advantage of sufficient storage space and less serious port congestion. It also has the capacity to load and unload a small amount of containers. Richard Bay currently has 21 berths in operation, which includes coal handling centers and small supporting wharf for dredger and tugs berthing at ports. The coal processing center with 5 berths is privately owned by Richard Bay Coal Terminal.
Infrastructure Richards Bay – Inland transportation It is known as the Richcor coal line from the southernmost end of the port to the South Dunes train loading center, the entire line serving the RBCT. The northern part of the harbor is connected by rail to Swaziland and the North Shore, Nsezi. John Ross, which is undergoing transformation, is directly accessible by the rail to N2 motorway. The road by N2 connecting to Durban and N3 connecting to Gauteng province is in good condition. Another road with large capacity directly connected to Gauteng province needs to be built in the future. Richards Bay - Short-term planning for future dry bulk and multi-purpose distribution centers is included in The Richards Bay Capacity Development Plan. It plans to take the opportunities to increase the handling capacity from 14 million tons per year to 24 million tons per year, with the help of a ring railway, new port equipment, stockpiling sites, rail infrastructure and more rational port operations. The new Coal Export Distribution Center plans to replan the 600 series berths at South Dunes and construct additional berths. The wet bulk cargo handling capacity will be enhanced through the completion of the 208 berth and the increase in the storage area, which provides the possibility to add an operating machine.
1、Umlazi water front 2 、 dry bulk and multi-purpose distribution centers 3、Bayside smelter 4 、 Richards Bay distribution centers 5. South Dunes area
coal
Infrastructure Introduction of important ports 2-Saldanha Bay：It has a capacity of 8,000 tons per hour and the annual throughput of 50 million tons (in 2019 planned to be expanded to 80 million tons), as the main iron ore transport terminal. The iron ore distribution center has two berths and it can berth two 35 tons of cargo ship. The harbor is the deepest port in South Africa and can berth ships with 21.5 meters of draught. The terminal is 900 meters long containing two iron ore berths connected to the causeway with full length of 3.1 kilometer. At the end of the iron ore terminal there is another tanker berth with 365 m length. The iron ore exporting equipment comprises a tilting device for unloading ore from a train, an apparatus for unloading the iron ore to a heap, and a conveyor belt. This conveyor belt can carry the raw materials to the cargo ship in the terminal 7km away . Inland transportation: The port is connected by the Sishen-Saldanha railway to the iron ore field of Northern Cape. There is also a railway leading to Cape Town, then Cape Corridor and the hinterland of Gauteng. The N7 motorway allows the Saldanha port to be connected to the entire national road network. Liquid fuel piping connects the port and storage equipment outside the harbor and can be transpoted to the refinery in Cape Town
1. Iron ore distribution center (contains ore deposit site, 2 berths, and the end of the Sishen-Saldanha heavy rail corridor) 2. Multi - purpose distribution center 3. The liquid bulk cargo berth at the end of the terminal 4. Mossgas oil and gas field 5. Berth bay for small boat
Infrastructure The electricity market in South Africa is exclusively operated by the national electricity company Eskom, with a capacity of 42 million kw accounting for 60% of Africa. In addition to meet home needs, the South Africa's electricity also exports to neighboring countries. South Africa is rich in coal resources with the production ranking the first in Africa, which provides a natural advantage for the development of coal power plants. GDP growth rate of South Africa is expected to reach 4%. In the next few years, The gap between supply and demand of South Africa's electricity will gradually widen. As can be seen from the figure below, according to the existing power supply capacity, due to equipment aging and other factors, the total capacity will continue to decline while the electricity demand is rising rapidly. The electricity supply could not meet the peak demand in 2012 and by 2018, the gap will reach 9500MW.
Infrastructure The South African government has introduced a new electricity policy to encourage independent power providers (IPP) to enter the market, and 30% of new installed capacity will be built and provided by IPP in the market of South Africa. The operation of the power plant of IPP is required to subject to standardization and internationalization. Eskom plans will add 17,000 MW by 2014 and double the current capacity to 80,000 MW by 2025. Approximately 50% of the added 40,000 MW is nuclear power followed by coal and gas power plants, and eight hydropower stations with total installed capacity of 5.1 million kilowatts. From the beginning of 2007 and in the next five years, Eskom plans will invest 150 billion rand (22 billion US dollars) for power facilities. Eskom plans 50 billion rand from its own funds, and the remaining 100 billion rand are financed by external financing among which half comes from domestic financing and half from foreign financing. Taking into account the inflation factor, the investment is expected to double to 300 billion rand (44 billion US dollars) in 5 years. The picture below: Eskom power plant construction planning
Investment policy 1.Overall evaluation - the investment environment is good.. South Africa has established a comprehensive policy system to attract foreign investment and promulgated a number of laws and regulations to encourage and regulate investment such as South African Ministry of Trade and Industry, specifically responsible for investment supervision providing "one-stop" investment services and international trade management committee, replacing the original tax office, responsible for management and supervision of industrial preferential policies. 2.The government encourages foreign investment. The South African government vigorously introduced foreign investment with all industries open to the outside and took a series of policies and measures such as the establishment of industrial development zones (IDZ), implementation of regional development plan (SDI) and tax incentives for foreign investment to encourage foreign investment. Foreign enterprises enjoy the same national treatment as if they were local enterprises . 3.The Government of South Africa provides subsidies or support to the following projects to guide the direction of domestic and foreign investment. • Technical training subsidy. For enterprises investing in South Africa, the government will provide training subsidies equivalent to 50% of the cost of labor and technical training within three years. The total amount of subsidies shall not exceed 30% of the total project cost; •Subsidies for infrastructure projects. For important infrastructure investment projects, the government will give local governments or investors subsidies up to 50% of the construction cost; •Production equipment import subsidies. Where investors outside the Southern African Customs Union and the Southern African Community introduce production equipment from overseas, the government shall provide a cash subsidy equivalent to 15% of the value of new machinery and equipment with the total amount not more than 3 million rand; •Industrial Innovation Support Program. In order to encourage investment enterprises to carry out technological innovation and new product development, subsidies of 50% of R & D costs shall be provided depending on the assessment. 4. China and South Africa signed taxation agreements. In April 2000, government of China and the government of South Africa signed the Agreement between Government of the People's Republic of China and the Government of the Republic of South Africa on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Income. 5. South Africa is a country with a "long" strike history. Workers have strong awareness of rights and the labor costs are high while the foreign workers are hard to enter South Africa, a country with high unemployment.
Investment policy Main tax type Corporate income tax VAT Dividend tax
Capital gains tax Estate and gift tax Interest tax Stamp tax Corporation tax
Tax rate General industry：28% Branch of foreign corporation：33% Special economic zones 15% 14% 15% Corporate juridical person 50%； Natural person 25% （ calculated by maximum 40% of individual income tax） 15% 0.75% 1-3% Where the Corporation is established or the authorized share capital is added, it shall be taxed by 0.5% of the capital or the increase of the share capital
6. BEE Act-26% of the ownership of the enterprise must be held by local blacks In 2001, the South African government promulgated the Black Economic Empowerment Act. The Act stipulates that 26% of the ownership of the enterprise must be held by local blacks and also the proportion of local blacks in management has been regulated, which means that foreign ownership is limited to less than 74%. 7. Three important development fields. 2012-2015 industrial policy development plan issued by South African Ministry of Trade and Industry pointed out: there are three fields which has a very important role in industrialization process and economic development of South Africa, namely: field 1 - qualified new development field. To realize the potential of metal processing, capital and transportation equipment, especially the implementation through large public infrastructure projects; upstream industries for oil and gas; green energy and energy saving industries; Food processing industry related to agricultural products prices and food security; shipbuilding industry;
Investment policy 8.Special economic zone. In 2000, the South African government began to implement industrial development zone policy. The aim is to stimulate direct investment at home and abroad to promote the development of export-oriented manufacturing and services industry, thereby boosting economic growth and increasing employment opportunities. Between 2001 and 2010, South Africa has set up four industrial development zones: the Coega Industrial Development Zone, the East London Industrial Development Zone, the Richards Bay Industrial Development Zone and the Or Tambo International Airport Industrial Development Zone. Coega, East London and Richards Bay are all under operation located in the eastern coastal areas. Or Tambo is the only inland industrial development zone, not putting into operation. Four operators have been awarded the industrial development zone operator license by the South African Ministry of Trade and Industry. From 2002 to 2010, the four industrial development zones attracted 40 investors and 11.8 billion rand investment. The South African Industrial Development Zone is one of the innovative programs pursued by the Ministry of Trade and Industry to enhance the international competitiveness of the manufacturing sector. The program is to select a specific area closely linked to international airports and harbors, invest in the construction of a sound infrastructure, provide investors with convenient customs clearance and tax incentives and establish export-oriented intensive production base. The program mainly includes the following: to establish a special service department under the Customs Department of Customs and Trade Office, responsible for the provision of professional tariff services and policy advice; provide tax exemption for the import tariff of raw materials related to production in the area and preferential tax rate on machinery and other fixed assets investment projects; levy zero VAT to the procurement of raw materials inside South Africa by enterprises; have priority to enjoy various subsidies implement by government; provide one-stop convenience services for the application and establishment of enterprises and other procedures and reduce operating costs; improve the infrastructure facilities, provide a world-class hardware for the operation of enterprises; provide efficient supporting services to facilitate the operation of investors in the development zone, optimize the soft environment of operation; implement export-oriented strategy to promote the final product exports.
South African Wildlife Park
Significance of South Africa Energy Metallurgy base
1. Make use of resources for deep processing, increase added value, increase employment and in line with domestic industrial development strategy in South Africa. 2. Industrial agglomeration, integration of the upstream and downstream of the industry chain; Conducive to the local infrastructure construction.
3. Products to meet the global market demand, support the African economic construction. 4. Develop the advantages of China-Africa B&R production cooperation. 5. Transfer China's excess steel capacity to reduce China's high energy consumption.
Macro-environment analysis 2007
2008
2009
2010
2011
2727.3
2752.8
2827.5
3635.2
4082.4
GDP per capita（dollar）
5614
5642
5665
7277
8084
Actual GDP growth rate（%）
5.5
3.6
-1.5
2.9
3.1
Inflation rate（%）
7.2
11.5
6.2
3.7
5
751.8
853.7
775.9
994.2
1176.8
773.9
995.6
637.6
801.4
N/A
-207.2
-23.7
-13.5
-13.7
-13.9
188.64
305.84
352.37
381.75
425.95
752.7
718.1
785.6
985.4
1034
7.1
8.3
8.5
7.3
7.3
Year Nominal GDP（100 million dollar）
Merchandise export（FOB 100 million dollar） Merchandise import（FOB 100 million dollar） Current account balance（100 million dollar） Foreign exchange reserve（100 million dollar） Foreign debt total（100 million
dollar） Exchange rate（ZAR/dollar）
Institutional rating: 1. According to Sinosure National Risk Rating Report (2010), the rating of South Africa was 5 in grades from 1 to 9, from low to high. South Africa's rating is in the middle, which means the risk level is high. 2. The China Development Bank has a credit rating of A for South Africa and a risk limit of $ 10 billion. The rating outlook is stable. 3. International rating agencies for South Africa's sovereign rating Rating agency S&P Moodys Fitch Ratings
Foreign exchange
Home currency
BBB+ A3 BBB+
A+ A3 A
Time of adjustment 2011-10 2010-11 2010-10
Macro-environment analysis 2007
2008
2009
2010
2011
2727.3
2752.8
2827.5
3635.2
4082.4
GDP per capita（dollar）
5614
5642
5665
7277
8084
Actual GDP growth rate（%）
5.5
3.6
-1.5
2.9
3.1
Inflation rate（%）
7.2
11.5
6.2
3.7
5
751.8
853.7
775.9
994.2
1176.8
773.9
995.6
637.6
801.4
N/A
-207.2
-23.7
-13.5
-13.7
-13.9
188.64
305.84
352.37
381.75
425.95
752.7
718.1
785.6
985.4
1034
7.1
8.3
8.5
7.3
7.3
Year Nominal GDP（100 million dollar）
Merchandise export（FOB 100 million dollar） Merchandise import（FOB 100
million dollar） Current account balance（100 million dollar）
Foreign exchange reserve（100 million dollar） Foreign debt total（100 million
dollar） Exchange rate（ZAR/dollar）
Institutional rating: 1. According to Sinosure National Risk Rating Report (2010), the rating of South Africa was 5 in grades from 1 to 9, from low to high. South Africa's rating is in the middle, which means the risk level is high. 2. The China Development Bank has a credit rating of A for South Africa and a risk limit of $ 10 billion. The rating outlook is stable. 3. International rating agencies for South Africa's sovereign rating
Rating agency S&P Moodys Fitch Ratings
Foreign exchange BBB+ A3 BBB+
Home currency A+ A3 A
Time of adjustment 2011-10 2010-11 2010-10
Summary of project economic and technical parameters Plant
01 Coal Washery
02
03
04
05
Coke chemical plant
Coal-Fired Power Plant
Ferrochrome Plant
Ferromanganese Plant
Total Capacity
2000
510
300
300
100
Capacity in each phase phase
Construction Capacity period
UOM
Investment output value Construction scale Gross workers Remarks time （Million （Million margin USD） USD）
Phase I
2018-2019
6
Million t/a
300
Phase II
2019-2020
7
Million t/a
350
Phase III 2020-2021
7
Million t/a
350
2 years
50
180
33%
50
180
33%
2 years
50
180
33%
2 years
Phase I
2018-2020
1.7
Million t/a
500
3 years
200
600
35%
Phase II
2020-2022
1.7
Million t/a
500
3 years
200
600
35%
Phase III 2022-2024
1.7
Million t/a
500
3 years
200
600
35%
Phase I
2018-2021
2*300
MW
300
4 years
600
165
33%
Phase II
2021-2024
2*600
MW
500
4 years
1200
330
33%
Phase III 2024-2027
2*600
MW
500
4 years
1200
330
33%
Phase I
2018-2020
1
Million t/a
4300
3 years
500
1200
35%
Phase II
2020-2022
1
Million t/a
4300
3 years
500
1200
35%
Phase III 2022-2024
1
Million t/a
4300
3 years
500
1200
35%
Phase I
2018-2020
0.3
Million t/a
1200
3 years
150
300
35%
Phase II
2020-2022
0.35
Million t/a
1300
3 years
150
300
35%
Phase III 2022-2024
0.35
Million t/a
1300
3 years
150
300
35%
Summary of project economic and technical parameters Plant
06
07
08
09
10
Silicon manganese plant
Ferrosilicon plant
Steel Plant
Stainless steel plant
Lime plant
Total Capacity
0.5
0.3
3
3
4.5
Capacity in each phase
phase
Construction Capacity period
UOM
Investment output value Construction scale Gross worker Remarks time （Million （Million margin USD） USD）
Phase I
2018-2020
15
Million t/a
600
3 years
80
150
35%
Phase II
2020-2022
15
Million t/a
600
3 years
80
150
35%
Phase III 2022-2024
15
Million t/a
600
3 years
80
150
35%
Phase I
2018-2020
10
Million t/a
500
3 years
100
120
32%
Phase II
2020-2022
10
Million t/a
500
3 years
100
120
32%
Phase III 2022-2024
10
Million t/a
500
3 years
100
120
32%
Phase I
2018-2020
100
Million t/a 2000
3 years
200
500
32%
Phase II
2020-2022
100
Million t/a 2000
3 years
200
500
32%
Phase III 2022-2024
100
Million t/a 2000
3 years
200
500
32%
Phase I
2018-2020
100
Million t/a 2000
3 years
400
1500
33%
Phase II
2020-2022
100
Million t/a 2000
3 years
400
1500
33%
Phase III 2022-2024
100
Million t/a 2000
3 years
400
1500
33%
Phase I
2018-2020
150
Million t/a 1000
3 years
100
250
33%
Phase II
2020-2022
150
Million t/a 1000
3 years
100
250
33%
Phase III 2022-2024
150
Million t/a 1000
3 years
100
25
33%
2640
7560
Total
18300
Special Economic Zone Occupation Institute Main Technical And Economic Indicators Table
No.
Indicator
UOM
Indicator Phase I
Phase II
Year
2018-2020
2020-2023
person/a
2000
2000
Person
100
100
A
Construction Period Project Planning
B
Scale
1
Number Of People Training
2
Number Of Teachers
C
Area Covered
M2
100000
10000
D
Construction Area
M2
50000
50000
M2
5000
5000
M2
20000
20000
M2
5000
5000
M2
800
M2
12000
Office Building
1 Academic Building
2 Laboratory
3 Library
4
800
Other Supporting Facilities
5
12000
Remarks
South Africa Energy Metallurgy Special Economic Zone Occupation Skill Training Schedule (2018 -2019)
South Africa Energy Metallurgy Special Economic Zone Occupation Skill Training Schedule (2018 -2019)
South Africa Energy Metallurgy Special Economic Zone Occupation Skill Training Schedule (2018 -2019)