The Minister of Trade and Industry, Minister Davies has, after considering the recommendation of the SEZ Advisory board, approved the appointment of an operator and issued an SEZ Operator Permit for the South African Energy Metallurgical Zone. The operator was appointed by the board of Musina-Makhado SEZ (SOC) Ltd.

Accordingly, the operator was issued to South African Energy Metallurgical Base, a subsidiary of a Chinese conglomerate Shenzhen Hoi Mor Resources Holding Company Ltd. The issuing of the Operator Permit authorises the holder to develop, operate and manage the S.A Energy and Metallurgical zone within the framework of the SEZ Act and other applicable South African laws.

Musina-Makhado SEZ was designated in July 2016 to focus on energy and metallurgical processing, agro-processing, petro-chemical and logistics. Minister Davies says “this development will go a long way in accelerating much needed economic growth, attraction of foreign and domestic direct investment, expansion of the manufacturing sector and mineral beneficiation, as well as creation of employment in the region, which is currently faced with high level of poverty, unemployment and underdevelopment”.

The development consists of at least 8 catalytic projects pipeline with a total investment of over R40 billion. The Energy and metallurgical complex will initially include the following projects: power plant, steel plant, stainless steel plant, coking plant, ferrochrome plant, ferromanganese plant, ferrosilicon plant, pig iron metallurgy plant, and lime plant. These projects will be implemented over the next 10 years and are expected to create over 21 000 jobs in the region.

Minister Davies says that Musina-Makhado SEZ is strategically located close to the main land-based trade route between South Africa and the broader African continent. This new development will certainly improve rail and road transport links between South Africa and the rest of the continent.

The official hand-over the permit will take place on Tuesday, 19 September 2017 in China (Xiamen) during BRICS Exhibition which is held parallel to the China International Fair for Investment and Trade (CIFIT) 18 - 21 September 2017.

Minister Davis extends his appreciation to the Limpopo provincial government through the Department of Economic Development, Environment and Tourism (LEDET) as well as Limpopo Economic Development Agency (LEDA)’s efforts to develop and make this zone a success.

 

Issued by Department of Trade and Industry