The Coega Development Corporation (CDC) has announced ambitious plans for the expansion of metals beneficiation initiatives and metals sector investments in South Africa through its newly unveiled 2014-2024 metals cluster strategy, which it hopes will attract R28-billion in local and foreign investment to the Coega industrial development zone (IDZ) over the next ten years.

With some 2 000 ha, or 20%, of the Coega IDZ’s land surface to be dedicated to ferrous and nonferrous metal industrial activity, the CDC believed the strategy would create 8 198 direct and 19 853 indirect jobs

CDC metallurgy business development manager Mogamad Sadick Davids said several metals sector and mineral beneficiation projects were progressing well in the Coega IDZ with a “healthy investment pipeline”.

“The manganese smelter, electromechanical component manufacturing plant, composite manufacturing and steel manufacturing of rail components will be converted in feasibility study stages during the 2014/15 financial year, with these projects valued at R13.6-billion.

“Several projects, worth R1.3-billion, are currently in funding stages and include an iron-ore plant, steel rolling mill and steel tube manufacturing plant,” he outlined.

Davids added that the CDC had also received letters of intent from investors for the construction of a steel manufacturing plant and a manganese smelter, valued collectively at R7.8-billion.

Meanwhile, Agni Steels South Africa, a high-tech R400-million smelting facility, went into pilot production earlier this year and was currently moving towards full production.

“We will intensify investor relations activities and are eager to pursue steel, stainless steel, rolling mills, manufacturing, ferrochrome, ferronickel and ferromanganese smelting projects over the next ten years, he outlined. 

The corporation believed the inbound and outbound value-adding logistics infrastructure remained an important strategic enabling support area.

“Partnerships and engagement between government, the private sector and the community are crucial to improve South Africa’s competitive position as a world-class location for sustainable manufacturing, metal sector investments and mineral beneficiation,” Davids noted.

Further, Russia’s Bank for Development and Foreign Economic Affairs chief representative in Southern Africa Alexander Tikhomirov said the bank was currently considering a business project involving Russian and South African companies in the shipbuilding industry.

“The Coega IDZ is a good location for export, it is internationally recognised and there are foreign investors already. Coega has big potential for development,” he commented.

According to CDC head of marketing and communication Dr Ayanda Vilakazi, metals beneficiation initiatives presented a rare opportunity for South Africa to continue sustainable economic growth beyond mining.

“Our metals clusters strategy is aligned to the Department of Trade and Industry’s Industrial Policy Action Plan, the Beneficiation Bill and government’s long-term National Development Plan, which provide focus and clarity for the country’s minerals industry to develop mineral value chains and the expansion of beneficiation initiatives in the country,” he said.