Ricochet News

R28-billion investment boost for Coega IDZ

SEPTEMBER 23, 2014
R28-billion investment boost for Coega IDZ

The Coega Development Corporation has announced plans to bring in R28 billion in local and foreign investment over the next decade through the expansion of metals beneficiation initiatives and metal sector investments.

CDC Metallurgy Business Development Manager Mogamad Sadick Davids said this morning that an estimated 8 198 direct and 19 853 indirect jobs could potentially be created.

Among the investments is a steel manufacturing plant, Davids saying that the company is currently reaching financial closure after which an environmental impact assessment would be initiated. He said he expected construction to start within 18-24 months.

Davids said further engagement on the planned manganese smelter would start with Kalagadi Manganese next year.

Spelling out the details of what he de-scribed as a “healthy investment pipe-line,” Davids said that the manganese smelter, electro-mechanical component manufacturing plant, composite manufacturing and steel manufacturing of rail components would be “converted into feasibility study stages during the 2014/15 financial year”. These projects, he added, were valued at R13.6 billion.

Davids said that several projects worth R1.3 billion were currently at the funding stage. Projects in this category included an iron ore plant, steel rolling mill as well as a steel tube manufacturing plant.

“We have also received letters of intent from investors for a steel manufacturing plant and a manganese smelter, collectively valued at R7.8 billion.

“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 10 years”.

In another boost for the IDZ, Chief Representative in Southern Africa of the Vnesheconombank (Bank for Development and Foreign Economic Affairs) Alexander Tikhomirov says consideration is currently being given to “one business project with Russian and South African companies with connection to ship building.

“The Coega IDZ is a good location for export. It is internationally recognised and there are foreign investors already. It has big potential for development.” - metrominutes


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