SA Business Integrator - Volume 10 l Issue 1 -2 by Media Xpose

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Volume 10 | Issue 1 | January 2024

JOBURG LOOKING UP: COJ COMMITTED TO DRIVING GROWTH IN

Information

Innovation

Inspiration

Transformation

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South African Business Integrator

Mining in the spotlight Welcome to 2024! After a challenging 2023, we are hopeful that this year we see some positive results across all sectors. For this edition, we have a special focus on the mining sector. The mining sector, depending on who you ask, brings forth some strong and differing opinions. To some, mining is seen as a key driver of opportunity – skills, job creation, enabling SMMEs, growing the economy and so forth. To others, the mining industry is symbolic of environmental destruction, health issues in communities and so forth. The reality is, any way you look at it, the mining industry has and continues to play a critical role in shaping South Africa. Over the years the mining industry has made strides in trying to optimise efficiencies, enhance safety protocols and achieve ESG targets. Taking this into consideration and the fact that we have valuable mineral resources, if managed correctly mining could be a key driver to unlocking opportunites that generations could reap the benefits of.

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What is critical is to have all the key players – mining organisations, interest groups, communities, government, etc. – to come together and look at holistic solutions about how to drive sustainable mining practices that will not only enable socioeconomic growth, but also play an essential role in unlocking renewable technologies for a greener future.

Tashne

Serving

Since 1909

Formed in 1909, The South African Institute of Electrical Engineers sports ± 6000 engineering professionals.

Why Join Us Our members are professionally engaged in various engineering activities, including academic research, manufacturing, electronics, telecommunications, measurement and control, mining, and power infra-structural services. Members make meaningful contributions to the quality of life in communities and the steady advancement of technology. Their efforts are acknowledged in many countries worldwide.

Our Purpose To enhance the practice of electrical engineering in South Africa and the stature of our members through knowledge, networking, influence, education and communication.

Training Academy We offer CPD training courses, a powerful learning tool to improve skills, ensuring that academic qualifications do not become outdated.

Skills Development One of our core objectives is to harness and foster the growth of Education in the Engineering sector, which has been faced with a debilitating shortage of skills.

Corporate Forums Corporates are invited to monthly forum meetings to discuss and brainstorm critical issues in South Africa and find solutions.

CONTENTS

8 56

30 ADVERTORIAL: Probe IMT Integrated solutions for productivity and safety 32 The call goes out for manganese & SA is ready 34 ADVERTORIAL: Tshepa Basadi Project, engineering and procurement management 36

8 COVER FEATURE: City of Johannesburg Looking up: CoJ committed to driving growth in Joburg

ine Water Management Policy an answer to M mine water challenges

40 Council for Geosciences: accelerating onshore geoscience mapping 44 Investment in renewable energy

12 ADVERTORIAL: City of Johannesburg Johannesburg Roads Agency partners with companies to fight effects of loadshedding

48 Localisation of the renewable energy industry

16 Q&A: M84 Geotech M84 Geotech: positive about the future of mining

52 Solar panel & battery waste

ining remains a key sector to unlock M opportunities

24 Q&A: Vezinhlanhla Mining Versatility and innovation for sustainability 28

opper 360 – developing skills and experience C in the industry sabusinessintegrator.co.za

50 Solar market oversaturation

54 Meeting 2050 net zero emission requirements 56 Our climate policy must be JUST 58 Q&A: AMSOL Blue economy holds significant potential for Africa 62 Developing the oil and gas sector for economic growth

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CREDITS South African Business Integrator @SABImagazine

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

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Volume 10 | Issue 1 | January 2024

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

PUBLISHER Elroy van Heerden-Mays elroy@mediaxpose.co.za EDITOR Tashne Singh editor@sabusinessintegrator.co.za SUB-EDITOR Tessa O’Hara tessa.ohara@gmail.com

JOBURG LOOKING UP: COJ COMMITTED TO DRIVING GROWTH IN

Information

Innovation

Inspiration

Transformation

COVER IMAGE PHOTOGRAPHER Okay Deer IMAGE CREDITS: 123rf.com

CONTENT MANAGER Wadoeda Adams artwork@mediaxpose.co.za DESIGNERS Anja Bramley artwork1@mediaxpose.co.za Shaun van Heerden-Mays artwork2@mediaxpose.co.za EDITORIAL CONTRIBUTORS United Manganese of Mamiki Matlawa Kalahari Lebogang Mulaisi MP Senzo Mchunu Makhosonke Buthelezi Dr Nigel Hicks Alexandra Burger ADVERTISING SALES MANAGER Rashieda Wyngaardt rashieda@sabusinessintegrator.co.za ADVERTISING SALES Rene van Heerden rene@mediaxpose.co.za MEDIA PARTNERSHIPS Maurisha Niewenhuys maurisha@mediaxpose.co.za

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6 Carlton Crescent, Parklands, 7441 Tel: 021 424 3625 Fax: 086 544 5217 E-mail: info@sabusinessintegrator.co.za Website: www.mediaxpose.co.za Disclaimer: The views expressed in this publication are not necessarily those of the publisher or its agents. While every effort has been made to ensure the accuracy of the information published, the publisher does not accept responsibility for any error or omission contained herein. Consequently, no person connected with the publication of this journal will be liable for any loss or damage sustained by any reader as a result of action following statements or opinions expressed herein. The publisher will give consideration to all material submitted, but does not take responsibility for damage or its safe return.

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Q&A: CITY OF JOHANNESBURG

Looking UP: CoJ committed to driving growth

in Joburg Historically, Johannesburg has always been regarded as the economic hub of SA. Dada Morero, the CoJ's Finance MMC speaks to SOUTH AFRICAN BUSINESS INTEGRATOR about strategic plans to tackle challenges and enable sustainable growth of the City. DADA MORERO | FINANCE MMC

What are key opportunities to enable sustainable growth? Looking at the Growth and Development Strategy 2040 and the Spatial Development Framework, the Inner City has been identified as the core of the City of Johannesburg and plays a significant role in terms of economic growth and development. We have in the past decade undertaken proactive efforts to regenerate the Inner City and the City at large. Several high-level strategies have been developed to counter the state of decay and bring change, stability and investment in the Inner City and across the city respectively.

sabusinessintegrator.co.za

Q&A: CITY OF JOHANNESBURG

These are collaborative efforts with residents, businesses, institutions of higher learning and civil society, among others. Our plans for this initiative include: • The Inner-City Transformation Roadmap: This roadmap pulls together all affected stakeholders and required resources to deal with the challenges and pushes innovation to create a sustainable and productive Inner City. • The Inner-City Investment Masterplan: This plan aims to create a funding mechanism for Inner City projects. The masterplan also catalogues private investment opportunities that are expected to emerge. • Spatial Development Frameworks (SDF) and localised plans: This identifies the main challenges and opportunities in the city, sets a spatial vision, and outlines strategies to achieve that vision. • The Informal Trading Policy & Bylaw: This will allow traders in the city to be registered and regulated to be included in the formal economy of the City. This will assist the City to better manage the informal trading areas and spaces, especially the Inner City where clean and safety issues normally emanate. This will help the city to be more appealing and regulated so that bylaw enforcement can take place effectively. It should also be noted that we did a recent review of the GDS to better consider our current context and challenges, taking stock of Census 2022, Covid-19, cost-of-living, the energy crisis, and the technological revolution – we expect formal approval of the revision in 2024.

What are some of the focus areas for 2024? We are focusing on the reliability of energy supply through the energy mix to drive economic growth. Furthermore, City Power was announced as the implementing agency for the Provincial Energy Plan and to this end City Power has started with the implementation of some of the programmes that were planned since the Energy Indaba. City Power is installing solar high mast lights, replacing stolen transformers – even in Eskom-supplied areas – rolling out solar geysers mostly in non-affluent areas, and solar rooftops on all City-owned buildings.

Additionally, the City is focused on the effective use of technology through the Smart City initiatives to improve service delivery and create a safer City.

What are some of the challenges in CoJ? Johannesburg is a vibrant and culturally rich city but is subject to struggles associated with developing countries. The rapid urbanisation experienced by many cities in the developing world means that faster population growth rates often contribute to large-scale urban poverty, housing shortages, infrastructure backlogs and environmental degradation. We identified 11 strategic priorities to deal with challenges faced by Johannesburg namely: good governance; financial sustainability; the energy mix; sustainable service delivery; infrastructure development and refurbishment; job creation; safer city; active and engaged citizenry; sustained economic growth; green economy; and Smart City. A number of programmes are aligned to these priorities currently being rolled out in all seven regions of the City.

What is the City doing to enable SME growth? Our Economic Development Strategy aims to unlock opportunities for SMEs by: • Increasing localised production – replacing imports by getting firms in Johannesburg and South Africa to become competitive suppliers. • Increasing economic activity in different regions within the City – promoting increased economic growth in regions based on their different profiles and comparative advantages. • Increasing small entrepreneurship activity through increased collaboration with the private sector valuechains and City supported-SMME hubs; and • Increasing connectivity with the rest of Africa through increased trade and investment links with the rest of Africa, including targeted development of economic precincts that reflect that Johannesburg is the economic hub of southern and eastern Africa.

There have been numerous reports about ailing infrastructure and challenges regarding service delivery. How does this impact investment? As we are all aware infrastructure plays a critical role in unlocking investment. The continent has been known for less developed infrastructure, which already impacts on the quality and quantum of investments to enable economic growth. sabusinessintegrator.co.za

Q&A: CITY OF JOHANNESBURG

Furthermore, infrastructure betters the proficiency of the City and lowers the cost of doing business, thus ensuring sustained levels of economic growth through foreign direct investments and encouraging business retention.

Additionally our local Investment Promotions Agency – DED – is on hand to help investors to navigate challenges that may arise pertaining to challenges be it electrical, transport and so forth.

We are cognisant that the impact of ailing infrastructure results in businesses moving from a specific location to an area that has developed infrastructure.

Yes, we have some challenges, but things are looking up and Johannesburg remains a preferred investment destination for domestic and foreign investments for a number of reasons including: • Quality infrastructure and efficient logistics; • Largest presence of multinationals in Africa; • Lucrative emerging market; • Favourable market access to global markets; • Innovation and tech hub; • It's Africa’s leading financial services sector; • Excellent quality of life; • It's a premier destination for business and medical tourism; and • We have an advanced financial market infrastructure, with the Johannesburg Exchange, which is ranked among the world’s top 20 stock exchanges by market capitalisation and offers investors an efficient platform for capital raising.

That being said, we have done a lot of work in identifying issues, and we have solid plans in place to address challenges, inclusive of infrastructure challenges. An example of this is that in the City, we have identified energy as a major concern for businesses considering expansions. Energy challenges has resulted in businesses delaying investment plans and some are even looking at other foreign destinations. To address this, the City has taken a proactive approach through initiatives such as the Short Power Purchase Agreement, which looks at the private sector supplying the City with additional power to better manage the energy constraints.

1 000 000 000 800 000 000

Exports

Trade Balance

Imports

857 259 852

600 000 000 400 000 000 200 000 000

-200 000 000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

133 942 948

-400 000 000 -600 000 000 -800 000 000 -1 000 000 000 Figure 1: Trends in the value of merchandise imports and exports (Source: South Africa Regional eXplorer 2374/2.6u).

10 sabusinessintegrator.co.za

-723 316 903,6

How is the City faring in terms of improving trade facilitation? As mentioned earlier, Johannesburg is ideally positioned to benefit from trade due to its proximity to major routes, which provide for ease of access to international markets. The City is home to the largest dry inland port in Africa, which improves the flow of imports and exports. The City regularly collaborates with different organisations, local and foreign, to improve exports through capacitation programmes, organisations such as the Department of Trade Industry and Competition, National Empowerment Fund, Gauteng Growth Development Agency, Gauteng Enterprise Propeller and Johannesburg Chamber of

1765 1536

1500

1000

500

Gauteng

2022

2020

2018

2016

2014

2012

2010

2008

2006

2004

0 2002

In value terms, the data indicates that imports increased from R43 billion in 1996 to R521 billion in 2021, while exports increased from R35 billion to R778 billion during the same period.

2000

The city’s foreign trade balance peaked in 2008, i.e., just before the negative trade effects of the global financial crisis began to manifest themselves.

2438

1998

[Refer to Figure 1] Overall looking at the trends in the value of merchandise imports and exports there has been steady growth for the most part.

2500

1996

Commerce of Industry. These stakeholders have established programmes that benefit SMMEs to fully tap into the global market.

Merchandise Exports Value Index: 1996=100

Q&A: CITY OF JOHANNESBURG

City of Johannesburg

Figure 2: relative trends in value of merchandise exports

There was a slight trade deficit for much (Source: South Africa Regional eXplorer 2374/2.6u). of the period from 1996 to 2007. This was followed by a few years of trade surpluses from 47% to 20%, while the share of imports from North before a trade deficit emerged once again for the America dropped from 16% to 9%. Over the same period, city from 2012 to 2015. Since then, the deficit has the share of imports from Asia rose from 25% to 40%, been widening, likely attributable to slower growth in and those from Africa increased from 3% to 10%. Imports Johannesburg’s manufacturing sector and fewer exports. from the Middle East rose in share from 6% to 15%, and Trade surplus in 2020 and 2021 was because of global for South America remained at 2%. This data clearly Covid-19 lockdown rules and reduced imports due to illustrates the rising importance of South-South trade in restrictions. the City’s export and import economy. [Refer to Figure 2] It is evident that that the value of merchandise exports for Johannesburg has grown Gauteng was recently said to be the number significantly and has grown at a comparatively greater one region for domestic travel. How does rate than that of Gauteng and South Africa at large. Johannesburg feature in this? The Johannesburg Tourism Company works in The value of Johannesburg’s exports was estimated collaboration with strategic stakeholders to position to have increased by 2 114% between 1996 and 2021, Johannesburg as a leading business and lifestyle compared with 1 616% for Gauteng and 1 371 % for destination in Africa. We have seen some great South Africa respectively. results namely, winning bids to host numerous global events such as: AfriCities; C40; One Young World; In terms of import values, there was cumulative growth in Junior Chamber International Africa and Middle East imports for Johannesburg, Gauteng, and South Africa at Conference; and Meetings Africa. 1 108%, 1 064% and 1 110% respectively. As per the GDS 2024, the vision for Joburg is to be In terms of the importance of different world regions as a World-class African City of the Future that is sources of imports for Johannesburg, there are also clear vibrant, equitable, strengthened through its diversity; and shifts in the data between 1996 and 2021. The share of provides quality of life and sustainability to all total imports from Europe fell by nearly more than half, its inhabitants.  sabusinessintegrator.co.za 11

ADVERTORIAL: CITY OF JOHANNESBURG

Johannesburg Roads Agency partners

WITH COMPANIES TO FIGHT EFFECTS OF LOADSHEDDING

2023 SAW THE MANIFESTATION OF JOHANNESBURG ROADS AGENCY’S (JRA) INTELLIGENT TRANSPORT SYSTEM (ITS) STRATEGY 2027 WHEN IT JOINED FORCES WITH CORPORATE GIANTS TO FIGHT THE EFFECTS OF LOADSHEDDING AND POWER OUTAGES. In the Sandton Central Management District alone, the partnerships have resulted in the powering of over 85% of Sandton Central’s traffic light intersections during loadshedding. The corporates involved include Investec, Vodacom, Standard Bank, Nedbank, Growthpoint, Sasol, Redefine Properties, Discovery Limited, Old Mutual, Liberty, Two Degrees and Pareto, Zenprop Property Holdings, Rand Merchant Bank, Momentum, Southern Sun, Blue Label Telecoms, The Cavaleros Group, Bowmans, Santam, Sanlam, Davinci Hotel, MTN and Suites and Netcare. As part of the partnerships, the JRA is responsible for funding the connection and providing the cable 12 sabusinessintegrator.co.za

connected to the controller box (the computer that controls the traffic light system on the ground) all the way to the border of the potential partner’s building. The partnering company is responsible for all the connections within its boundaries. The costs for setting up the connection are minimal when compared to what we all stand to gain through this initiative. For instance, it costs JRA between R80 000 to R100 000 to connect each intersection. The amount can be more depending on whether the JRA has scheduled that particular intersection for an upgrade, and can include re-cabling the entire intersection, paving, and installing new controller boxes on the sidewalks.

ADVERTORIAL: CITY OF JOHANNESBURG

SUBSTANTIAL BENEFITS TO THE ECONOMY

However, emphasis shouldn’t be placed on the costs incurred but on the substantial benefits to our economy with fully operational traffic lights during power outages. From the partnerships, we stand to benefit from improved safety for both pedestrians and motorists, reduced road rage incidents, and less time spent on the roads due to compromised traffic flow. The intrinsic value that we stand to gain from the connections easily runs into billions. The game-changing ITS Strategy 2027 focuses on how the JRA should contribute to an evolving city like Johannesburg by incorporating a Smart City Focus, recognizing shifts in travel patterns due to an increase in the movement of goods and people across the city. The strategy also aims to assist the City in becoming competitive for residents in their everyday navigation and living.

HOW TO ESTABLISH A PARTNERSHIP WITH THE JRA

Establishing a partnership with the JRA is easy. Interested companies are invited to send the JRA an email to express their interest in partnering with them. Upon receiving their request, the JRA will respond and provide them with an SLA to sign and formalise the partnership. Before finalising the partnership, a JRA technical team will visit the site to determine if the intersection belongs to the City or the provincial government and how much work is required to complete the connection. Based on the outcome of the assessment, the JRA will conduct all the required work and have the intersection ready to be operational during loadshedding.

In addition to powering traffic intersections, the JRA’s ITS Strategy 2027, aims to improve the management of traffic throughout the City’s road network and install smart or advanced traffic light systems that can automatically predict movement patterns through the use of artificial intelligence (IA) to provide the most efficient way to allow traffic flow. The strategy is also intended to increase safety on the City’s roads. To achieve this, the JRA needs to have in place a stable electricity supply for its traffic signals network, which has been made possible by the partnering corporations.

PARTNERED WITH MORE THAN 40 COMPANIES

Since the inception of the Traffic Signal Backup Power Initiative, the JRA has partnered with more than 40 companies currently powering 113 intersections to provide power from their reserves during loadshedding and power outages. The partnering companies assist by providing a power uptake that ranges between 550 watts per hour to 1 500 watts per hour at the most complex intersections. The partnerships have since gone on to assist with traffic movement across the City’s road network. Contact: Sipho Nhlapo Acting HOD: Mobility and Freight Johannesburg Roads Agency snhlapo@jra.org.za

sabusinessintegrator.co.za 13

WE ARE OBSESSED WITH CREATING THE FUTURE OF LIFE TODAY As a B-BBEE Level 1 engineering design and consulting firm, our highly skilled team provides diverse services in five carefully identified market sectors to best bolster our customer’s needs, the environment they operate in and the goals they wish to achieve. Our multi-disciplinary and technology driven organisation specialises in the sectors of:

Water & Sanitation

Energy & Power

Transport

Development Services

Mining

Special

MINING SECTION

Q&A: M84 GEOTECH

M84 Geotech:

positive about the future of

MINING M84 Geotech is a geotechnical company specialising in the supply and installation of rockfall protection and mitigation systems, mainly in mines. SA BUSINESS INTEGRATOR spoke to CEO, Khomotso Moleke, about the company’s rise in SA’s mining environment. KHOMOTSO MOLEKE | M84 GEOTECH CEO

16 sabusinessintegrator.co.za

Q&A: M84 GEOTECH

What are your thoughts on the future outlook for the mining environment in South Africa? How the future looks will always depend on who is looking; and how we see the future will always be different to the next business. We believe the mining sector still has a lot to offer for our future because some of the technologies we are using, or will use more of in the future, requires the mining sector to provide the resources to enable those technologies. Mining in the future will definitely be different to how it was done in the past; better, less harmful and technology will play a critical role in making that possible.

What are some changes expected in the mining environment, and how is M84 Geotech adapting accordingly? We see ourselves as a safety company because what we do is basically provide solutions for mines to operate in a safe environment. Technology is definitely bringing some changes in the mining sector with mines now moving towards a greener way of mining for the benefit of society and the environment as well. As a mining contractor, we are also looking at better and safer ways to deliver our services in the sector, and technology is one of the ways to do that. We are currently looking at ways we can deliver projects faster and minimise the production interruption, while keeping safety standards high. Change is inevitable in business and in life, and if you want to survive or create a sustainable business you have to move with the times and make the necessary changes to stay relevant.

We believe the mining sector still has a lot to offer for our future because some of the technologies we are using, or will use more of in the future, requires the mining sector to provide the resources to enable those technologies."

What is the scope for M84 Geotech in terms of planning, designing, exploration and operational stages in the mining sector? Currently, our scope includes the installation of slope support systems and maintenance services for high walls in the mining sector. However, as a growing business we are now looking into the planning and design of the systems we are currently installing. At the moment, we outsource the designs of the systems and work hand-in-hand with the manufacturer of the systems we provide and are involved in the planning process to ensure the end product is of the highest standard. We are mostly involved at the end of the process, which is where the installation of the systems takes place, but soon we will also do the soft part of the process which is the planning and design of the solutions. We have young rock engineering graduates and students we want to work with to develop protection and support systems for the mines.

What are the key risks from a geotechnical perspective in the mining industry, and how does M84 Geotech help mitigate this? From our perspective, the main risk is that of rockfall and slope failure. The high tensile mesh we use has proved to be effective in mitigating those risks. We use either passive or active rockfall protection solutions as well as monitoring solutions to mitigate rockfall and slope failure risk for open cast operations.

What does M84 offer for underground and surface mining? Underground is an area in which we are still establishing ourselves and we believe we have the right solutions for these kind of operations. The underground solution we offer is quicker to install and as strong as the one we offer for open cast mining. We use an automated unrolling equipment, which does the drilling and installing the mesh. For surface mining we provide rock scaling, which is the removal of boulders and loose rocks on mine high walls, prism installation, which is used to monitor slopes, slope support and rockfall barriers solutions in the form of high tensile steel drape mesh and catch fences. sabusinessintegrator.co.za 17

Q&A: M84 GEOTECH

The core of our service is to mitigate any rockfall risks that open and underground mines are exposed to. We use rope access techniques to install and provide these services and we are an accredited “working at heights” contractor. We are also an accredited installer of drape mesh, pinned mesh and catch fence solutions.

"The core of our service is to mitigate any rockfall risks that open and underground mines are exposed to."

18 sabusinessintegrator.co.za

What are some other projects M84 Geotech is involved in? We always keep our ear to the ground in terms of opportunities in the mining environment because we are interested in the future of mining in South Africa and the rest of the continent. However, our service offering is not only limited to the mining sector, but other fields also, such as civil engineering (mountain passes and railways), construction and so forth.

Q&A: M84 GEOTECH

What are your thoughts about the importance of diversification for SMMEs? Diversification is very important in business but at the same time you cannot be everything to everyone. Diversification also comes in different forms; it can either be in services, products or even sectors. In our case, we have established ourselves in the mining sector and now we are also looking into other sectors where our services can be offered. This will protect us against market and economic changes which affect each business sector. Even in the mining space we are diversifying our services by going into the underground mining segment to do support. We also diversifying into other markets on the African continent, SADC being the region we are more interested in, but not limiting ourselves to that region as the African continent is full of opportunities.

What is key for business owners to ensure not just growth, but sustainability too?

In our case, we have established ourselves in the mining sector and now we are also looking into other sectors where our services can be offered. This will protect us against market and economic changes which affect each business sector."

What has M84 Geotech’s growth been like since becoming specialised? It has not been easy because we have entered a specialised and high-risk area. It is always difficult to get the big projects when you are seen as an inexperienced contractor, but we are very grateful to Mogalakwena Mine for giving us our first opportunity as a local black company to do slope support for their pits.

Growth in business, as in life, is very important, but growth that you are not ready for can be very harmful. It’s very important that you prepare yourself for growth, grow gradually and take lessons with each step of growth because you will need them as you grow. What is also more important is sustainability because sustainability ensures that growth is maintained, which is the most difficult part in business. Running a business is like running a marathon; if you want to build a generational business, you have to be patient and have a long-term view. As an entrepreneur, you have to invest in yourself and the vision you have for your business. I believe a business will not grow beyond the vision of an entrepreneur, so, if your vision is small you will produce a small business and if you as an entrepreneur don’t grow and expose yourself to what is possible, your business will go as far as you think.

We treat each project as an opportunity to build our name and with the short time that we have been doing this we are now one of the most reliable rockfall protection specialists in the country with a 100% completion record and 100% safety record on-site.

I try not to limit myself to what we do now but try to be relevant to the needs of the markets we are operating in. Some of the leading brands in the world did not start in the industries or services they are offering now, so you have to be willing to change to stay relevant in business.

We are now expanding the brand into the SADC region, with Botswana and Lesotho being the first countries we are targeting. We have already done a site visit at Letseng diamond mine and see an opportunity to service the mine.

That’s why we made the shift from being a supplier of plastic products to a geohazard mitigation contractor because the conditions demanded the change. Had we not made the shift, it would have been the end of the business.  sabusinessintegrator.co.za 19

MINING

MINING REMAINS

a key sector to

unlock OPPORTUNITIES

The mining industry remains an immense contributor to the country’s gross domestic product (GDP). A confluence of domestic and global factors has severely impacted the performance of the mining and energy industries, however, despite the hurdles encountered, we remained steadfast in setting objectives and attaining government’s developmental agenda.

By Makhosonke Buthelezi, Department of Mineral Resources & Energy South Africa is host to more than 50 minerals and ranks in the top 10 with several of them. We foresee that the majority of the country’s minerals are going to have a growing demand for renewable energy and other technological growth on the back of the 4th Industrial Revolution. It is envisaged that the development of South Africa’s Critical Mineral Strategy and its implementation will unlock further opportunities in the mining and mineral sector, and further help industrialise and support the just energy transition to a low-carbon future. 20 sabusinessintegrator.co.za

The mining industry would contribute further to the economy if the binding constraints in electricity supply, rail infrastructure, and port systems were urgently resolved to enable optimal production as well as logistical support, to take advantage of the global and domestic markets.

MINING

Implementing the Freight Logistics Roadmap To address challenges in the rail infrastructure and ports systems, the government has established the National Logistics Crisis Committee (NLCC) which comprises of businesses. The main task of the NLCC is to implement the Freight Logistics Roadmap. The NLCC will work on implementing a range of actions required to restore the efficiency and competitiveness of key industry supply chains, as well as ports and rail more generally. The National Energy Crisis Committee (NECOM) also continues to implement Interventions to reduce the occurrence of loadshedding over the medium term. The appetite for local and global investment in the mining sector is influenced by several factors. In addition to those mentioned above there’s an increasing demand from capital providers for mining companies to align with ESG (Environmental, Social and Governance) factors.

World needs to explore and mine at an escalating scale The reality is that decarbonising the global economy will be metal-intensive, making mining a crucial component. To meet the growing demand for critical minerals essential for electric vehicles and renewable energy technologies, such as lithium, copper, cobalt, manganese, and platinum the world needs to explore and mine at an escalating scale. Defining what constitutes critical minerals is important because of its significant impact on strategic planning, prioritisation, and investment decision-making. Thus, classifying critical minerals must be holistic, with consideration of our national and continental needs, and global trends. There is global acceptance that nuclear, and gas will play a critical role as clean energy technologies in the just energy transition from high carbon emissions to low carbon emissions. It is therefore our submission that uranium, which Africa is endowed with, is a critical mineral for the development of clean energy and medicine. There can be no green future without Africa’s minerals mainly dominated by South Africa and the Democratic Republic of Congo.

Climate change has become a major issue for many countries throughout the world, due to the harmful effects of extreme weather induced by this phenomenon. To address it, governments are enacting laws and regulations that encourage the use of cleaner alternatives to fossil fuel-powered transportation and electricity generation.

Mineral demand is expected to skyrocket As a result of this transition to alternatives, mineral demand is expected to skyrocket. The DMRE with other key stakeholder departments, business, organised-labour, and other important stakeholders are developing a critical minerals strategy to identify these key minerals and develop interventions to allow South Africa to capitalise on the anticipated increase in demand. We are also finalising a battery minerals strategy in collaboration with other stakeholders. This will promote the increased local beneficiation of these strategic minerals thus contributing to increased export revenue and job creation.

The mining environment is one of the key factors to not only earn the respect and cooperation of those living near the mines, but to ultimately protect the mine’s impact on the environment. To ensure compliance and adherence, every mining right or permit application must be accompanied by an Environmental Management Plan (EMP) as well as Financial Provision. An EMP is obtained through an Environmental Impact Assessment or Basic Environment Assessment to ascertain that the potential Mine Right Holder will be able to mitigate negative environmental impacts. As such Mine Right Holders are expected to conduct concurrent rehabilitation as part of an approved EMP programme and the Department conducts regular compliance and enforcement programmes to ensure compliance with the conditions of the license. Through National Treasury funding, the Department has a programme to rehabilitate derelict and ownerless mines. Its aim is to mitigate environmental, health and safety impacts as well as continuously facilitate the monitoring of land and water. This is to ensure safety risks of humans and animals, mine openings (mine shafts) are closed properly.  sabusinessintegrator.co.za 21

Ovum Corporation

WELCOME to Ovum Corporation

Great feats of engineering are never done by one person. They are done by a team of people.

Ovum Corporation stands for innovation and the giving of life

Ovum Corporation INTRODUCTION Ovum Corporation is a civil engineering consultancy based in South Africa that specializes in the civil and structural design of all aspects of modern infrastructure. With a global reach, we have successfully executed projects in Africa, the Middle East, and Asia. Committed to sustainable development, Ovum Corporation utilizes the latest technologies to design and deliver environmentally friendly infrastructure solutions.

to new ideas for projects that uplift mankind. We also associate ourselves with the green movement, sustainable technologies and innovative thinking that drives the creative process forward. We are committed to providing infrastructure planning, design, and delivery solutions that are both sustainable and visually stunning. By combining international best practices with our knowledge of local conditions, we aim to offer unparalleled service throughout Africa and beyond. Our goal is not just to survive, but to thrive in this mission. To achieve this, we use the latest Building Information Modelling (BIM) software, analysis techniques and project visualisation programmes available.

Ovum Corporation

Civil & Structural Design

CAPABILITIES Ovum Corporation has experience in developing and applying cutting-edge technology solutions for a wide range of industries. With a dedicated team of highly skilled professionals, Ovum has successfully delivered innovative civil engineering solutions around the globe. Our team takes a collaborative approach to problem-solving, working closely with clients to understand their unique needs and tailor solutions to meet them. We pride ourselves on staying ahead of the curve when it comes to emerging technologies and industry trends, constantly pushing the boundaries of what's possible. At Ovum, we're committed to delivering top-quality results that exceed expectations and help our clients achieve their goals.

The Company 01 02

Established in 2020 Delivering structural mega projects around the globe

Our Services 03 04 05

Commerical Buildings & Telecommunication Towers Mining & Industrial Plants, Process and Storage Facilities Bridges and Culverts

ovumcorporation.com nicholasf@ovumcorporation.com (+27) 81 787 2633

Q&A: VEZINHLANHLA MINING

Versatility and innovation for

sustainability Vezinhlanhla Mining is a 100% Black-owned mining contractor, which combines top-notch experience with the versatility and innovation required by the mining industry to be sustainable in the long term. SOUTH AFRICAN BUSINESS INTEGRATOR spoke to CEO, Prince Vusi, about the growth of this family-owned mining company. PRINCE VUSI | VEZINHLANHLA MINING CEO

What was the rationale to starting Vezinhlanhla Mining? As a Vusimuzi Group subsidiary, I established Vezinhlanhla in 2017 to focus exclusively on the mining industry. Initially there was not much difficulty in establishing and growing the company, although we did have some challenges in 2022, but we showed immense resilience during the rebuilding phase.

What are some of the key milestones and successes achieved?

• project management and facilities management; • plant maintenance and conveyor maintenance; • crushing and screening; • engineering and drilling; and • bulk material transportation and hauling. We provide extensive services for coal, gold and platinum group metals (PGMs) producers. Vezinhlanhla was established with the sole purpose of servicing the mining industry – if it’s not in mining, it’s not for us.

Two years ago, Vezinhlanhla Mining was unknown, but in 2023 I put all my focus on Vezinhlanhla to put it on the map. Today, we are a known brand to all provinces surrounding our borders as a result of investment in branding and marketing initiatives to help grow our visibility of the services we offer in the mining industry.

What are some key opportunities you foresee, and what is required to unlock these?

Vezinhlanhla can best be described as an empowered mining contractor with capabilities across the underground and opencast contract-mining value chain. We offer: • underground mining and opencast mining;

I will be 31 in 2024, and my goal is by the age of 32, that my team and I will reinforce our position in the market, not only as a 100% Black-owned mining contractor, but as a reliable and competitive independent producer, starting with those 0.1% holding stakes.

24 sabusinessintegrator.co.za

Joint ventures are the future; there are investors who want to unlock opportunities for youth in South Africa, but they need people with great technical capabilities to execute those operations for small-scale mining.

Q&A: VEZINHLANHLA MINING

The likes of Sasol, Exxaro, ARM, Menar, Seriti, Thungela, Ndalamo, Ntsimbintle, Royal Bafokeng, and Kalagadi, didn’t get to be where they are today overnight. These companies are my heroes and I look to them for inspiration. It’s a marathon, not a sprint, so you have to work hard and smart, and be determined, consist and focused on the goal with the right team backing you. You cannot do it alone, no matter how blessed or smart you are.

What are the key challenges facing the mining industry, and what needs to be done to mitigate these challenges? Whether white or black, people are looking for a quick ‘get rich’ scheme to live flamboyant lives and pay employees below average wages. Hence, you see that most companies that started off in the public sector find it hard to survive in the private sector. It should be noted that while large mining companies offer opportunities through different programmes, there are some SMMEs that are in it just for the money.

What SMMEs really need to focus on is having solid execution strategies, which is critical for sustainable growth. Companies such as Fraser Alexander, WBHO, JEDD, Blue Mining, Murray and Roberts, and Redpath tend to dominate in many areas and are awarded contracts because they are very good with execution strategies. Another challenge is the so-called forums, which are destroying the opportunities the mines want to give out. Most of them are based on self-enrichment; not for the community. Some people don’t want to use the platforms the mines have put in place for available opportunities, but want things to be handed out on a silver platter just because they are door-step communities. If things don’t go according to plan, it is important that proactive engagement takes place as opposed to a knee-jerk reaction of blocking roads to cease operations, which in the end negatively impacts everyone. Financial literacy is also important in this industry if you want to stay competitive and consistent. The mining companies that do work with communities offer seminars on pricing, RFI and tender selection processes, which are very helpful. sabusinessintegrator.co.za 25

Q&A: VEZINHLANHLA MINING

New systems, platforms and applications are developed almost daily, and these changes influence Vezinhlanhla in terms of how we conduct our operations and interface with our clientele." What are some of the key initiatives implemented by Vezinhlanhla Mining that assist mining companies in optimising efficiencies? Vezinhlanhla’s commitment to safety, health, quality and environmental management standards means the company works towards continuous improvements in risk management to better deliver project excellence.

How is technology helping to drive efficiencies? The digital space is not static and is forever evolving, so it is important for Vezinhlanhla to keep abreast of the latest trends as it affects how we live, work and play.

26 sabusinessintegrator.co.za

How has Vezinhlanhla Mining adapted to execute environmentally friendly operations? In an era of heightened environmental consciousness, the mining industry and its contractors bears a responsibility to minimise its impact on the planet. Vezinhlanhla takes this responsibility seriously by embedding sustainable practices and environmental, social and governance (ESG) principles into every project by using cutting-edge technology, conducting thorough environmental assessments and adopting eco-friendly materials and execution methods.

Q&A: VEZINHLANHLA MINING

How is Vezinhlanhla Mining playing a role in transforming the mining industry? As a 100% Black youth-owned and managed mining contractor, Vezinhlanhla’s Black empowerment credentials ensures that our clients benefit fully in terms of the Mining Charter requirements and the contractual conditions of key minerals purchasers. We are committed to Broad-based Black Economic Empowerment, supporting the government’s policies for transformation and affirmative action and will continue to implement such initiatives where possible. Vezinhlanhla has also initiated projects to source material and equipment from our fellow black SMMEs, thus speeding up the process of empowering people in communities we operate in.

What has the impact been in terms of job creation and skills development for the surrounding community? We believe the empowerment of women, youth and disabled people should be achieved in all aspects of work, and that bringing more women onboard also strengthens our company’s capacity. We also employ youth to pass on the skills to the next generation as the company grows. We will introduce bursary schemes from 1 March 2024 for students to further their studies.

I am responsible for supervising and controlling all strategic and business aspects of Vezinhlanhla, and this comes with the added responsibilities of providing the proper strategic direction as well as creating a vision for success.

How do you foresee the future growth of Vezinhlanhla Mining? I want to see us growing in strategic collaborations and partnerships as we aim to bring our expertise and innovative solutions to the mining sector. 

Vezinhlanhla has developed a culture where there is no discrimination against disabled persons; hence, it will seek to find, train and employ disabled persons who show potential and enthusiasm.

How do you navigate change in an everevolving environment to ensure sustainable growth? As a founder and CEO of the Vezinhlanhla, growing up with a business mindset has taught me to be able to see the ‘big picture’ in a variety of settings and this enables me to take action to enhance the company’s cash flow while keeping the human factor in perspective. The goal remains to drive Vezinhlanhla and guide it towards longterm success.

+27(0) 087 550 2087 info@vezinhlanhla.co.za www.vezinhlanhla.co.za Vezinhlanhla Mining Vezinhlanhla Mining sabusinessintegrator.co.za 27

MINING

Copper 360

– developing skills and experience in the industry There is a lot of hype regarding copper as a result of its versatility. As the demand for copper increases, SOUTH AFRICAN BUSINESS INTEGRATOR asked Copper 360 how South Africa is capitalising on this?

According to Copper 360, demand growth for copper is inevitable as it powers the green economy and thus, a large part of the world’s economic future, especially considering the sustained growth in demand for clean energy.

Technology, innovative mining models and environmentally sound principles in responsible mining will contribute to further growth of the sector including up and downstream benefits.

South Africa, and in particular the Northern Cape, holds substantial copper reserves and as such will become a substantial role player in the sector in the near future.

What are some lessons that the copper mining industry can learn from diamond, gold, and platinum mining in SA?

In fact, the Northern Cape’s mineral wealth will likely position it as the mineral province and next economic growth node in the country.

To optimise returns for SA, what is required from legislative and trade perspectives? South Africa has all the necessary legislative vehicles in place to allow the copper industry to blossom. It is the rediscovery of the copper resources below ground and on the surface that will ignite the growth in the industry.

Lessons learnt should be viewed from a wider perspective. What is important in any sector are the principles of community, of understanding and inclusivity, and cognisance of and care for the environment while embracing technology as an enabler to achieve more efficient means of production.

What potential and capacity does SA have to beneficiate copper? Beneficiation can represent a positive outcome for any sector and the copper industry is no different.

What is important in any sector are the principles of community, of understanding and inclusivity, and cognisance of and care for the environment while embracing technology as an enabler to achieve more efficient means of production." 28 sabusinessintegrator.co.za

As demand grows globally and South Africa assumes its position as a substantial role player in the market, it would be a natural next step. There are some challenges, such as energy supply, but challenges such as this are all surmountable.

MINING

How are Copper 360 operations expected to impact economic growth, job creation, enabling SMMEs, local communities and skills development? The immediate economic impact is on local communities, as mining activity creates employment opportunities, which in turn create the opportunity for business, small enterprises and entrepreneurs. But opportunity requires skill, and Copper 360 has taken the view to develop skills in the Northern Cape via our School of Mining, which launched at the end August 2023. We have already welcomed the first cohort of well over 30 students to the facility in Concordia. Here, we plan to aid the development of skills and experience that, firstly, we require in our company, whereafter, as the School of Mining grows organically, and the Northern Cape mining sector grows, we would be able to exit qualified and experienced graduates from our various programmes to enjoy opportunities across the industry.

How does Copper 360 aim to balance environmental concerns with mining operations? A significant portion of our business comprises environmental restoration. We recycle copper bearing

rocks in historical dumps at our plant in Nababeep, Northern Cape, turning old waste into copper and simultaneously reducing and eventually eliminating environmental damage caused by mining activity in the previous century. Ultimately, the area will end up looking like it did before mining commenced. Secondly, we are passionate about the environment and every aspect of our operation is mindful of the same. Copper 360 embraces technology that not only delivers efficiencies, but also provides a greater measure of environmental protection. For us, responsible mining lies at the very core of our business.

What are Copper 360’s thoughts on the future of mining in South Africa? South Africa is a country blessed with rich natural resources and mining has been the backbone of our economy for centuries. Moving forward, we expect that it would continue delivering to our economy, creating jobs, opportunities and prosperity for the country.  sabusinessintegrator.co.za 29

PROBE IMT OFFICES - JOHANNESBURG (HQ) WWW.PROBEIMT.CO.ZA NATIONAL: +27 (0) 86 111 3507 TEL: +27 (0) 11 453 0924 | TEL: +27 (0) 13 697 0660

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MOZAMBIQUE

Tel: +258 (0) 84 393 1000 Cell: +258 (0) 84 389 9698

MINING

The call goes out for manganese & SA is

READY By United Manganese of Kalahari

For a long time, South Africa has hinged its prosperity on gold, and the development and economic prosperity of the province of Gauteng give testimony to this fact. But things are changing… Recent decades, however, have seen the production of gold wane dramatically, from an era of being the country’s majority metal export to now being a minority at just 23% by sales in 2022. South Africa is a country that’s rich in mineral wealth, however, and as a nation, we’re awakening to the economic benefits to be found in that diversity. Manganese is a universal and widely used mineral essential for an enormous range of industries and sectors, particularly in the future economy.

South Africa is the world’s largest producer of manganese ore, accounting for approximately 36% of global production."

Manganese affirming itself as the leader of SA’s mineral renaissance

Africans and generated more than R7 billion in tax revenue. The industry has also contributed more than R47 billion export earnings over the last 12 months to the country's foreign exchange reserves.

Having enjoyed significant local growth in production and sales over the last decade, manganese is now affirming itself as the leader of South Africa’s mineral renaissance. After all, South Africa is the world’s largest producer of manganese ore, accounting for approximately 36% of global production.

The Northern Cape is well-positioned to capitalise on the growing international demand for manganese, as the province has abundant manganese resources in addition to a skilled workforce that has a long history of mining manganese.

Most of South Africa’s manganese deposits are in the Northern Cape, where the manganese mining industry is the province’s major economic driver. In 2022, the manganese mining industry employed over 14 500 South

It’s also noteworthy that the rise in demand for manganese is sure to boost South Africa’s copper industry, as manganese and copper are complementary minerals that are frequently used together.

32 sabusinessintegrator.co.za

MINING

Manganese essential to producing green power technologies Manganese is a crucial element in the manufacturing of lithiumion batteries, such as those used in electrical backup systems and electric vehicles. Recent years have seen a dramatic rise in demand for electric vehicles all over the world, and South Africa is in the perfect position to respond to that need.

Opportunities come with their attendant responsibilities The local manganese industry is keenly aware, however, that these exciting opportunities come with their attendant responsibilities. Primarily, there is the need to support local communities by providing jobs and training opportunities. Our people are our strength, and we, therefore, invest heavily in social development programmes, such as education and healthcare, within our local communities. We also want the manganese mining industry to enjoy the reputation of operating in an environmentally responsible manner. This includes taking stringent measures to reduce water and air pollution and to manage waste products responsibly.

Analysts estimate that the demand for manganese in lithium-ion batteries will increase by an average of 10% per year over the next decade. South Africa’s manganese ore production is expected to concomitantly reach about 50% of the world’s additional manganese ore output over this period.

Both the government and the mining industry are investing in new technologies to support the growth of the manganese industry. This will not only improve South Africa’s operational efficiency and competitiveness in this field but will also enhance our environmental sustainability. We firmly believe that we are already world leaders in that respect.

Manganese-rich cathode materials are also being developed to boost the efficiency of electric vehicles. This, in turn, will increase the demand for the metal. In addition to its use in batteries, manganese is essential to producing several other green power technologies.

This will benefit not only the manganese mining industry but also the province, thus boosting the country’s overall economic prospects. South Africa is indeed fortunate to be in the position in which we have both the material and operational capacity to rise to the demands of a rapidly changing world.

However, the versatility of this metal extends even beyond the power industry. As an alloying element, it is essential in various types of steel production (often together with copper) and services the food processing, agricultural, chemical, construction, medical, and aircraft industries. Further enhancing its reputation as a green-friendly mineral is that it can also treat wastewater and extract pollutants from soil and air.

Given the sudden acceleration of green power strategies in the developed west, the manganese industry is set to provide increasing opportunities for employment and economic growth in the Northern Cape, thus playing the role that gold had played in Johannesburg’s formative years.

www.umk.co.za

United Manganese of Kalahari is a South African mining company, operating on the Kalahari manganese field in the John Taole Gaetsewe District Municipality in the Northern Cape Province of South Africa. The Kalahari manganese field is regarded as the largest manganese ore deposit globally. The field extends continuously in a north-western direction, for a distance of 34km from Mamatwan Mine in the south to the Wessels and Black Rock Mines in the North UMK is a company operating in a manganese-based economy with exposure to the export market. It is strategically located with good access to rail infrastructure, rapid load-out and export facilities.  sabusinessintegrator.co.za 33

ADVERTORIAL

Tshepa Basadi – project, engineering, and procurement management

Tshepa Basadi, meaning “Trust Women” in Setswana, was founded by its female leadership team in 2017 in the Kalahari (Hotazel) region. A black women-owned business, it specialises in project, engineering, and procurement management. Tshepa Basadi’s vision is to change the status quo by being a niche mining project management and technical services consulting firm, which is female-led. We strive to provide exceptional professional services to our clients by enabling them to meet their portfolio demands. Our value proposition is as follows: • We create value for our clients and help them realise full value from their projects and portfolios. • We continuously build thriving teams, the members of which are nationally and internationally accredited with the relevant project management and professional engineering bodies. • We are accountable to our clients for disciplined delivery. • We ensure a sustainable and profitable organisation.

SERVICES OFFERED Project Management

• Establish and manage a project management office • Develop project management methodologies • Portfolio prioritisation and management • Project and construction management resources • Project value improving practices • Project procurement and contract administration • Project quality management • Project safety management

Operational Readiness

• Develop end state operational readiness requirements • Operational readiness planning • Commissioning planning • Operational readiness and commissioning execution

Project Planning

• Project scheduling (Primavera and Microsoft Projects) • Schedule auditing • Maintenance and shutdown planning • WBS compilation • Costing • Cost management • Cost analysis • Cost reporting • Resource planning • Critical path analysis and reporting • Progress updating and reporting • Management reporting • Planning resources

Risk Management

• Risk recruitment services • Quantitative risk analysis • Qualitative risk analysis • Risk frameworks • Risk assessment workshops • Hazard and operability risk assessment • Hazard and constructability risk assessment

Engineering

• Engineering concept and detailed designs • Engineering design reviews • Tender documents and specifications • Tender evaluation and adjudication • Feasibility studies • Engineering resources

If you are struggling with the capacity and capability to execute your capital portfolio, then you could be our next client. Our expertise includes professional project managers, engineers, construction managers, planners, and other technical resources to coordinate the design, procurement, project management, risk management, construction, commissioning, and handover of your complex projects. Our current clients include Anglo American, Platinum and Kumba Iron Ore, South32, United Manganese of Kalahari, Kalagadi Manganese Mine, Assmang Khumani Mine and HATCH Africa.

www.tshepabasadi.co.za

34 sabusinessintegrator.co.za

HEAD OFFICE (NORTHERN CAPE) T +27 (0)53 244 0024 (admin) T +27 (0)53 244 0039 (sales & accounts) JOHANNESBURG OFFICE (GAUTENG) T +27 (0)10 065 2318 (admin) T +27 (0)10 065 2319 (sales & accounts)

We strive to provide EXCEPTIONAL PROFESSIONAL SERVICES to our clients by enabling them to meet their portfolio demands

Project Management

Operational Readiness

Project Planning

www.tshepabasadi.co.za

Risk Management

Engineering

MINE WATER

Mine Water MANAGEMENT POLICY

an answer to mine water challenges

The mineral industry is one of the biggest contributors to South Africa’s gross domestic product (GDP) and continues to be key to the country’s economic growth. The country has a host of various mining activities across the nine provinces. However, these mining activities have also resulted in mine water management challenges in most of the mining areas. By Senzo Mchunu, Minister of Water & Sanitation

In Mpumalanga, mine-impacted water has been polluting the streams, and this could be attributed to ownerless mines. Additionally, pollution control works meant to manage mine-impacted waters are in a state of decay due to vandalism.

In the Kwa-Zulu Natal region, some coal mines have been abandoned and left to pour out contaminated water, while in the province of Limpopo, especially in the Lephalale area, coal mining is prevalent mainly due to the production of electricity via coal-fired power stations.

Gauteng and North West provinces are also faced with heavily polluted mine water due to pyrite that is associated with various mining activities as well as rising levels of mine-impacted water leading to decants.

These coal fields are responsible for the production of mine-influenced water with a high sodium signature. The mines in the west and east of Limpopo impact the Olifants river catchment, which is a tributary of the Limpopo River basin.

36 sabusinessintegrator.co.za

MINE WATER

Acid mine drainage a key challenge for gold, copper and coal mines Acid mine drainage is one of the key challenges emanating from gold, copper and coal mines and has a significant impact on our water resources. Currently, there is a reluctance from mines to put up treatment plants to treat their mine water. Lack of alignment between the Department of Water and Sanitation (DWS) and the Department of Mineral Resources and Energy (DMRE) when it comes to mine closures also remains a challenge. If decommissioned mines are not closed properly, they result in abandoned mines and with uncontrolled decants that eventually becomes the state’s responsibility. For years the Department of Water and Sanitation has not been able to access the financial provision that has been set up by mines to deal with latent water pollution that is a result of mining.

Investigating short-term solutions for pumping and treating of AMD The first decant occurred in 2002, at the Rand Uranium operation at one of their ventilation shafts, 18 Winze in Krugersdorp. This triggered the establishment of an Inter-Ministerial Committee (IMC) on acid mine drainage

(AMD) to investigate short-term solutions for the pumping and treating of AMD. The IMC report recommended the construction of three AMD treatment plants in the western, central and eastern basin which cost approximately R2.6 billion, and which requires R300 million per annum for operation and maintenance. However, it is not feasible for Government to continue to carry the cost of treating mine water. The DMRE, Department of Forestry, Fisheries and Environment (DFFE) and DWS must therefore exercise control over the environmental impact of mining activities to satisfy the requirements of their respective mandates. Co-operation between the three departments in this regard is in the best interest of government as well as the mining industry. Sustainable development is key in ensuring that human needs are satisfied within the limits of the earth’s carrying capacity. Sustainability can however not be achieved without a strong regulatory framework. That is where the Mine Water Policy comes in.

"Currently, there is a reluctance from mines to put up treatment plants to treat their mine water. "

sabusinessintegrator.co.za 37

MINE WATER

The success of the eMalahleni Water Reclamation Plant (EWRP) has demonstrated the viability of using mine impacted water treated to either industrial or potable standards for other purposes, under certain conditions." Protection and management of water resources The Mine Water Management Policy was approved by the cabinet in May 2022. The policy serves as a mechanism for the protection and management of water resources to the benefit of all South Africans. The purpose of this policy is to provide a coherent and integrated approach towards sustainable Mine Water Management and to provide relevant and integrated legislative remedy. The Mine Water Policy has 11 principles that each address the legacy impacts of mining throughout

the country including among others, an integrated approach to mine closure, apportionment of liabilities, and optimum use of appropriate and cost-effective technology. Each of these principles is meant to ensure that government does not continue to carry the cost of sustainable mine water management. Ensuring proper closure of mines will guarantee there are no latent effects left after these mines have closed. Apportionment of liabilities will ensure that mines that have contributed to mine water challenges pay for their contribution towards the problem. The policy is also aimed at unlocking the mine water economy. The National Water Resource Strategy (NWRS) identified water re-use as one of the strategies to balance water availability and requirements in the future. One of the commitments of the NWRS is that the DWS with its sector partners will explore the use of new technologies for re-using wastewater and for re-using treated mine water.

Potential opportunities for private sector to explore Feasibility studies for the further treatment of mine water to potable standards have found that there may be opportunities for the private sector to explore. The success of the eMalahleni Water Reclamation Plant (EWRP) has demonstrated the viability of using mine impacted water treated to either industrial or potable standards for other purposes, under certain conditions. The Water Research Commission (WRC) is currently carrying out a study to determine if mine impacted water can be used in irrigated agriculture. The high-density sludge treatment of mine water in the eastern, central, and western basins produces a high volume of by-product/sludge which would have an impact on the environment. It was found that there are benefits in the re-use of this sludge. The sludge is of high gypsum content, which can be used in the cement industry and agricultural sector. As a result of the positive results from the research, there is a plan to expand the existing plants to accommodate and deliver sludge to be sold to the market to offset the operational costs of the treatment works. The Department will in future explore public private partnerships to mobilise private sector finance and skills to develop and implement some of these technologies and to develop the mine water economy. 

38 sabusinessintegrator.co.za

MINING HOSE SOLUTIONS

WATEX – A BRAND PEOPLE ASK FOR!

ing in extended design life being offered as a warranty on most hose products. All products are produced from virgin materials that have a UV protection additive to deal with the harsh climatic conditions prevalent in South Africa. Also available is a top-quality range of hose-end fittings imported from Taiwan.

Reinforced Hosing (Pty) Ltd has been manufacturing the Watex brand in South Africa since 1999, when the late Gavin Brown and Dev Howett established the company. Many challenges later, they are a major force in the Reinforced Hosing (Pty) Ltd is the manufacturer of the Watex Brand of quality Hose for: gardening sector of the hardware industry, being a houseProducts on offer hold name and a brand that can be found on the shelves of many supermarkets, hardware stores, nurseries, and Garden Hose & Accessories others. • Tap adaptors • Sprinklers • Sprayers • Hose menders and joiners Their current range include amongst others: • Hose connectors • Pyramid sprayers • Garden hose • Builders hose • Agricultural dragline with two products on offer. Firstly • Hose hangers • Green wall vertical garden a 10 year warranty SABS approved hose and secondly a price competitive 5 year warranty hose. Agricultural Hose • Crop spray hose • Clear tubing is available for a number of applications in • Dragline hose various sizes.

• CIVIL • CONSTRUCTION • MINING • AGRICULTURE

Industrial Hose • Garden hose comes in the following categories: year Using6 virgin raw material our quality products • LP gas hose and regulators • Acetylene and warranty with and without fittings in 12 and 20mm diammanufactured to the highest standard oxygen hose eters and lengths of 20 and 30 meters; 8are year warranty • Air and water hose • Clear reinforced tubing possible – SANS 1086. bright and colourful hose available in 12mm diameter and • Clear thick/thin wall tubing • Fuel reinforced hose lengths of 20 meters, all with fittings. • Multipurpose hose • Fire hose • Suction hose • Clear reinforced tubing is manufactured in a variety of diameters to suit most needs. Mining Hose • Anti-static loading hose • Mining hose is manufactured to SABS specifications and • Anti-static hose Standard/medium/heavy duty mining hose a whole range is available. Made Africa ••TOUGH and fully SADC Compliant. Rockdrill hose WATEX Yellow/Orange/Blue/Green durable super flexible and abrasion resistant mining hose. • Industrial hose is also manufactured for a variety of • Suitable for colder conditions • Operating temperature -10O C to +50O C • Reinforced. The company is proud to have SABS certification on many applications and in various diameters and lengths. PRODUCT CODE: RMY10030 RMY12030 RMY20030 RMY25030 RMY32030 RMY40030 RMY50030 of its tough hoses, which are manufactured to SANS Nominal ID (mm) 10 12 20 25 32 40 50 1086:2007 quality standards. • Gas Hose is LPG SABS Certified and available in various Burst Pressure Kpa 6800 6800 6000 5600 4000 3500 3500 lengths from pre-packed 2m with clamps to 30m, Working Kpa50m and1700 1700 1500 1400 1000 900 900 It is the goal of Reinforced Hosing to remain a local man100m rolls. ufacturer Reinforced supporting local business and creating Hosing (Pty)employLtd ment for South African people, thereby adding value to the • Fittings and Accessories for garden hoses are also availeconomy. • Tel: +27(11) 769 2600 able, ready to merchandise for both the 12mm and 20mm • www.watex.co.za garden hose. • www.watex.co.za. • Tel: 011 769 2600. • e-mail: info@watex.co.za • The Garden Wall is a ready-made solution for space-restricted modern homes. It makes garden on patios and walls very easy and is available in kit form that is easy to assemble and mount. Reinforced Hosing manufactures PVC hoses locally. The entire manufacturing process is quality controlled result-

QUALITY HOSE MANUFACTURER

GEOSCIENCE

Council for Geoscience:

accelerating onshore geoscience mapping

South Africa is renowned for its extensive and varied mineral resources, including gold, platinum, diamonds, chromium, and manganese. In 2022, the country’s mining sector ranked sixth overall for global mineral production volume. By Dr Nigel Hicks, Specialist Scientist, Geoscience Mapping Lead

Despite this, the sector faces numerous challenges at the dawn of the critical minerals era, the just transition and aspirations to achieve a net zero global economy. To contribute towards South Africa’s Economic Reconstruction and Recovery Plan (ERRP) by securing a minimum of 5% of the global exploration expenditure by applying geoscience information and knowledge, the Council for Geoscience (CGS) is in its sixth year of executing its Integrated and Multidisciplinary Geoscience Mapping Programme (IMMP).

Programme conceived to provide geoscience solutions to support the National Development Plan 2030 The IMMP aims to generate high-resolution integrated geoscience maps across the country at different scales and to maintain an impactful delivery of the core mandate of the CGS. The programme was conceived to provide innovative and responsive geoscience solutions to support the National Development Plan 2030 and to contribute to, inter alia, economic growth, employment and job creation. The geoscience information collected is used to delineate geological formations and features that may enhance our understanding of a few earth processes, mineral and energy resources distribution, groundwater, land use, infrastructure, geohazards and geo-environmental pollution-related matters. 40 sabusinessintegrator.co.za

1:50 000 published map coverage in 2017 prior to the implementation of the IMMP, compared to coverage as of 2023.

GEOSCIENCE

"The geoscience mapping programme has further been used to aid investigations into national energy security and the just energy transition."

CGS scientist identifying critical mineral-bearing pegmatite in Namaqualand, Northern Cape. Large pink spodumene crystals (a lithium aluminium silicate mineral) can be seen in a lepidolite matrix.

The IMMP addresses four core themes in response to the national development imperatives for the geosciences: 1. Economic growth (geosciences for mineral and energy resources, infrastructure and land use); 2. Environmental health (geosciences for infrastructure and land use, health, groundwater and the environment); 3. Innovation (geosciences collaboration with other institutions); and 4. International relations (geoscience diplomacy).

Increasing confidence in exploration and mining Under the “Geoscience for mineral and energy resources” theme, the CGS collects, analyses and processes highquality geological, geochemical, geophysical and mineral data, which will lower risks, while increasing confidence in exploration and mining, particularly in areas that remain underexplored. A priority of this programme, and a cornerstone of the CGS, is multidisciplinary onshore geoscience mapping at a greater level of detail (e.g. 1:50 000 scale) focussed on providing data to serve as a base to advise the State and various stakeholders, including the public, in support of economic recovery projects in the country. With a primary focus both on emerging critical minerals and base and precious metals, coal, and industrial minerals (e.g. aggregate), the onshore geoscience mapping programme has achieved a significant increase

in countrywide coverage, from below 5% prior to the commencement of the IMMP in 2017, to 12% at the end of the 2022–2023 financial year. This increase relates to 230 out of a total of 1 916 1:50 000-scale maps having been published. For 2023-2024 the CGS has an ambitious plan to increase annual map publication to 80 maps, which will increase the total national coverage to 16%. Once published, the geoscience data is made available on the CGS portal which ensures that geological information is easily accessible to showcase the country’s exploration potential.

Potential hydrothermal and magmatic mineral targets identified This fast-tracked production approach has already yielded results as new geoscience data has identified potential hydrothermal and magmatic mineral targets in the Northern Cape, Western Cape, Northwest and Limpopo provinces. These targets include critical minerals such as lithium, manganese, vanadium, fluorspar, phosphates and base metals. The geoscience mapping programme has further been used to aid investigations into national energy security and the just energy transition. These projects include research into geothermal potential as well as carbon capture utilisation and storage (CCUS), which will sabusinessintegrator.co.za 41

GEOSCIENCE

augment the sustainable renewable energy programme in the medium to long term, reaffirming South Africa’s commitment to clean energy. The multidisciplinary onshore mapping programme also presents opportunities to contribute towards infrastructure and land use development at provincial and municipal levels by producing detailed geological maps and associated geohazard risk assessments representing valuable tools for future land use planning and the management of current infrastructure and development projects.

The onshore mapping programme focusses on projects in the Eastern, Western and Northern Cape provinces and in Mpumalanga, Free State, KwaZulu‑Natal, Northwest and Limpopo provinces. For the year ahead, the CGS will focus on the continued production of fundamental geological maps and associated data to be utilised across a range of sectors. These include applied geoscience solutions, mineral and energy resources, health, groundwater and the environment, infrastructure and land use, and geoscience innovation.

At the forefront of multidisciplinary mapping techniques in Africa and globally

CGS staff examining an outcrop of Paleoarchean felsic agglomerate in the Barberton Greenstone Belt, Mpumalanga province.

The CGS is privileged to be at the leading edge of rejuvenating and reimagining the exploration landscape in South Africa. Through the scientific and strategic goals of the IMMP and its 1:50 000-scale mapping programme, the CGS has positioned itself at the forefront of multidisciplinary mapping techniques in Africa and globally. The aim of these initiatives is to provide integrated, systematic and thematic research products to contribute to the assessment and sustainable management of mineral, geohydrological and geo environmental resources in South Africa. Consistent with the quality of South Africa’s geological endowment, the CGS mapping programme has shown that the country remains an exploration frontier in the new emerging minerals markets. 

For the year ahead, the CGS will focus on the continued production of fundamental geological maps and associated data to be utilised across a range of sectors." CGS scientist mapping landslides in Natal Group sandstones in KwaZulu-Natal province.

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INVESTMENT

Investment in

renewable

ENERGY Renewable energy has become a global priority as countries strive to transition to a sustainable future. South Africa, with its abundant natural resources and commitment to renewable energy, offers significant investment opportunities. By Alexandra Burger, Lyra Consulting

Investment opportunities in South Africa South Africa has made significant commitments to renewable energy, aiming to increase its renewable energy capacity to 17 800MW by 2030. The Renewable Energy Independent Power Producer Procurement (REIPPP) programme has been instrumental in attracting investment and has successfully awarded contracts for over 6 000MW of renewable energy projects since its inception in 2011. Opportunities exist across various renewable energy sectors, including solar, wind, biomass, and hydroelectric power however, to date, the majority of capacity is currently 64.9% solar PV and 32.1% wind power according to SAPVIA. The country's solar potential is immense, especially in the Northern Cape province, which boasts some of the highest solar radiation levels globally. Wind energy potential is also significant, particularly along the coastal regions.

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INVESTMENT

Independent Power Producers Procurement Programme (IPPPP)

The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

The IPPPP was established by the Department of Mineral Resources and Energy (DMRE), National Treasury (NT), and the Development Bank of Southern Africa (DBSA) to secure electrical energy from the private sector, both from renewable and non-renewable energy sources.

The REIPPPP uses a competitive tender process. The programme aims to procure 6 800MW of new generation capacity from solar and wind between 2022 and 2024, representing 33.3% of the target for new renewable energy capacity under the Integrated Resource Plan (IRP) 2019.

This programme aims to contribute to national development objectives, in particular job creation, social upliftment, and black economic ownership.

IPP companies The structure of IPP companies include black industrialists, other South African shareholders, community trusts and foreign shareholders blending foreign direct investment (FDI) and expertise. IPPs bring new investment, skills, technologies, and competition to the industry. They stimulate local industry development and create jobs. The procurement design of the IPPPP balances risks between the private sector and the government. IPPs finance the construction and operation of the power plants and bear all construction and site risks. IPPs are penalised for delays and budget overruns and bear the risk of reduced revenues if the power plant is not operational or produces less power. IPPs only start recovering their investment when the power plant begins generating power. They commit upfront to targets for job creation, economic development, and socio-economic upliftment.

To date, all bid windows of the REIPPPP have been oversubscribed, resulting in high competition. The programme is intended to leverage global technology developments and price trends to secure clean energy at increasingly lower rates. The REIPPPP has attracted significant investment both from local institutions and foreign investors in the South African economy, promoting local production, manufacturing, research centres, and economic activity in rural areas. The programme focuses on economic development outcomes such as local content spend, employment opportunities and socio-economic development, enterprise development and skills development. Overall, the IPPPP and REIPPPP play a crucial role in diversifying the energy mix, attracting investment, promoting renewable energy, and contributing to sustainable development in South Africa.

Growth in off-grid renewable energy production While much has been said of the contribution of the IPPPP and REIPPPP to the energy sector, self-generation may in fact be the next game changer. This trend has already been significant in several sectors such as mining and retail. The mining industry, one of South Africa’s largest energy consumers aims to reduce its own consumption by approximately 30% with 73 generation projects from 24 mining companies which could generate up to 5.1GW of electricity (technology analyst Christian Teffo, Minerals Council South Africa). According to the Minerals Council, Pan African Resources is already producing 10MW, Gold Fields is set to add a further 50MW, and Harmony Gold is aiming to produce 38MW. In 2023, NERSA registered 295MW of projects for mining companies. Sibanye-Stillwater is preparing feasibility studies for prospective 50MW and 85MW solar PV projects; Anglo Platinum is looking at building a 75MW to 100MW solar PV plant. Northam Platinum is looking at modules of 10MW. According to Gold Fields CEO Chris Griffith, their solar PV plant will generate more than 20% of the mines' electricity and will save Gold Fields R120 million a year in power costs. sabusinessintegrator.co.za 45

INVESTMENT

Impact of legislation on investment opportunities Policies and legislation plays a crucial role in shaping the investment landscape for renewable energy. South Africa has implemented supportive policies such as the Integrated Resource Plan (IRP) and the National Energy Regulator Act (NERA). These policies provide a framework for renewable energy development, ensuring a stable and predictable investment environment. The Eskom roadmap outlines that Eskom is to be unbundled by splitting it into three separate companies each responsible for generation, transmission and distribution and that independent distributors would be established. The Electricity Regulation Amendment Bill (B23-2023) demonstrates the movement to liberalise the energy sector and create a competitive electricity market. The Bill enforces third-party access to the transmission and distribution system based on tariffs applicable to all customers and applied objectively. In line with the unbundling of Eskom, key role players are supposed to be introduced into the electricity sector including the Transmitter, System Operator, Market Operator and Central Purchasing Agency. The Bill provides for mandatory registration for activities not requiring licensing and streamlined licensing

requirements. Facilities which solely provide standby or back up electricity or have no point of connection and small-scale facilities under 100kW are now accepted under the bill provided they register with NERSA and comply with specific conditions such as technical codes, regulatory requirements and fees. NERSA's powers are extended to being able to issue, amend, withdrawal, suspend and revoke licenses. NERSA may also act as an arbitrator and a mediator. NERSA will no longer be required to regulate pricing but will take on the responsibility of setting and approving the tariffs. The tariffs must allow licensees to recover their costs including a reasonable return and other factors. There is also provision made for licensees to charge tariffs not approved, which is a result of a competitive market or direct supply agreement. In 2021 the licensing threshold was increased 200MW and the President announced in July 2022 that he would remove the licensing threshold for embedded generation completely. All new generation products projects would have to be registered with the regulator and comply with the technical requirements for grid connection and environmental legislation but would not require licenses.

"There is also provision made for licensees to charge tariffs not approved, which is a result of a competitive market or direct supply agreement."

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INVESTMENT

Local vs international investment Partnerships between local and international investors can leverage the strengths of both parties. Local investors can provide valuable insights into navigating the regulatory landscape and building relationships with local communities, while international investors can bring cutting-edge technology and access to global markets.

Structuring deals Power purchase agreements (PPAs) are a key component of deal structuring, ensuring a stable revenue stream for investors. The REIPPP programme has standardised PPAs, providing clarity and reducing negotiation complexities.

Investors need to assess the financial viability of projects, considering factors such as capital costs, operating expenses, and revenue projections. Access to financing is crucial and South Africa has developed a financial ecosystem to support renewable energy investments, including local and international banks, development finance institutions, private equity funds and other Challenges and risks institutional investors such as retirement funds have contributed significantly to infrastructure investment.

Outlook for investment in renewable energy in 2024 The outlook for investment in renewable energy in South Africa remains positive. The government's commitment to renewable energy, coupled with the investment by key sectors such as the mining and retail sectors and growing demand for energy, will continue to attract investments. The REIPPP programme and other self-generation projects are expected to continue, providing a pipeline of projects for investors. Technological advancements and (hopefully) decreasing costs of renewable energy technologies would enhance the attractiveness of investments. Renewable energy investments in South Africa will play a vital role in achieving sustainability goals. Investment in renewable energy in South Africa offers significant opportunities for both local and international investors. While there are challenges and risks, the opportunities are significant.  www.lyra-consulting.co.za

Challenges and risks

Grid integration: South Africa's aging infrastructure and limited transmission capacity pose challenges in integrating renewable energy into the grid. However, the government has recognised this issue and is investing in grid upgrades to address the challenge.

Policy uncertainty: Changes in government policies or delays in implementing supportive regulations can impact investor confidence – the 2024 elections may be a key factor.

Skills: There is a significant skills shortage on all levels from engineering and technical skills to financial, legal and other skills and this is expected to become more prevalent as more projects are rolled out.

Project management: The potential for project delays and cost overruns is a significant risk, which was unfortunately experienced in the earlier rounds. Investors need to carefully assess project timelines, construction risks, and potential challenges in obtaining necessary permits and licenses. Engaging experienced developers and contractors is essential to mitigate these risks.

Despite these challenges, the opportunities in renewable energy investments in South Africa outweigh the risks.

sabusinessintegrator.co.za 47

OPINION

Localisation OF THE RENEWABLE ENERGY INDUSTRY

Despite the urgency to transition from traditional power production to sustainable alternatives – not only because it reduces environmental impact but also fosters local economic growth – wealthier nations across the globe are leading the shift while some countries, such as South Africa, are lagging. By Mamiki Matlawa, Group Business Development Executive at ACTOM

Of crucial importance is to adapt existing products and engineering offerings to meet the demands of the renewable energy industry, with innovations such as online condition monitoring, which can improve the efficiency and reliability of renewable energy projects, paving the way for a sustainable future. South African companies have been involved in the green economy space since 2011 when the government introduced the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Thus, local organisations already have a wealth of experience in manufacturing the balance of plant for renewable energy products, including in the areas of engineering, procurement and construction, financing and operation, and maintenance. South Africa has homegrown skills and resources in renewable energy, which could be harnessed and nurtured to overcome South Africa's lag in

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the renewable energy space. Furthermore, these skills and resources could also be exported to the rest of the continent to work with other African countries to shape a greener and more resilient future – unlocking economic benefits for South Africa and Africa as a whole.

OPINION

Comprehensive approach needed However, to successfully develop South Africa’s domestic manufacturing capabilities and reduce the African region’s dependence on foreign suppliers, a comprehensive approach is vital with companies providing end-to-end services, including product supply, installation, and maintenance to ensure a smooth transition to sustainable energy sources. Key to this is mechanisms such as the African Continental Free Trade Agreement (AfCFTA), which aims to achieve the free movement of physical goods throughout the African Union, as well as the liberalisation of trade through the implementation of preferential tariffs. Recently, the five member states of the Southern African Customs Union (SACU) – South Africa, Lesotho, Botswana, Namibia and Eswatini – ratified the AfCFTA agreement. SACU has also submitted its joint offer of tariff concessions, which is currently being verified by the AfCFTA Secretariat. The AfCFTA agreement is expected to catalyse the manufacturing industry and open trade opportunities between African manufacturers, increasing regional demand for equipment and services and driving access to new markets. Importantly, this will enable African

manufacturers to develop economies of scale, which will position them to effectively compete with foreign companies in the renewables space.

"The AfCFTA agreement is expected to catalyse the manufacturing industry and open trade opportunities between African manufacturers, increasing regional demand..."

South African transition On the domestic front, a significant factor that is to some extent helping South Africa bridge the gap to wealthier nations in transitioning to sustainable energy sources is the ongoing energy crisis, as well as natural disasters like recent flooding in some provinces. These are the drivers that are pushing the country to look at sustainable energy sources and thus speeding up the transitioning process. According to Trade and Industrial Policy Strategies Senior Economist Gaylor Montmasson-Clair, South Africa has imported R35 billion worth of solar panels since 2010. Montmasson-Clair says that R12 billion worth of solar panels have been imported by South Africans so far in 2023. This is equivalent to roughly 2 200MW of generation capacity. It is estimated that South African households and businesses have installed 4 400MW of rooftop solar PV to date, which has significantly reduced the residual load that Eskom needs to meet during the day. The scope for African manufacturers in the green economy is vast, but the continent needs to expand the supply chain in this space by effectively harnessing initiatives such as the AfCFTA agreement to build economies of scale. It is only through the localisation of the renewable energy industry that local manufacturers can hope to compete with large-scale and well-established foreign suppliers. 

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RENEWABLE ENERGY

Solar market oversaturation

Due to ongoing loadshedding, high electricity prices, and a considerable decrease in the cost of solar systems over the past few years, more homeowners are making the switch to solar. However, elevated demand has resulted in more providers and installers entering the market, causing oversaturation. Rein Snoeck Henkemans, CEO of Alumo Energy and a leading expert in solar, warns that this rush of new players in the industry has seen opportunists take advantage of unsuspecting households. “Over the past few months especially, we’ve seen a significant rise in calls from homeowners whose systems were installed by fly-by-night or “bakkie brigade” service providers with little or no expertise in solar. However, these systems are usually installed incorrectly or use cheap, inferior components which is why they were offered at a major deal,” he says. “Then, by the time these systems inevitably malfunction or break down, the service provider has disappeared, leaving homeowners without recourse to seek repairs and get the right replacement parts.” As a result, the consequences for the average consumer could be dire if they fail to do their research or choose reputable providers with credible track records. “Not all newcomers or small or single-man operations are undependable, and many play an important role in the market. But there are few bad actors within the industry who are leaving homeowners to bear the cost of their mistakes and shortcuts.” 50 sabusinessintegrator.co.za

The effects of market oversaturation Henkemans explains that the current market oversaturation does carry some benefits for homeowners. For example, greater demand may lead to lower overall prices for solar panels and systems, making solar more affordable and accessible. More market participants also means that consumers have a wider range of options. “Ultimately, however, the consequences of a massive influx of lessexperienced installers are considerable. Inferior systems that have been incorrectly installed are bound to have a shorter lifespan and may need far more maintenance, driving costs substantially higher over time,” he adds.

RENEWABLE ENERGY

“The other issue is that when a solar installer goes under, homeowners can no longer claim a workmanship guarantee and will have difficulties claiming their warranty. “Additionally, when Alumo goes out to perform an inspection in these types of cases, we often find that the previous installer used an inferior component or installed something incorrectly somewhere in the system, which serves to void the warranty.” For the solar industry, oversaturation means most larger companies and smaller operations will see fewer overall sales and experience heightened competition. Intensified competition may then lead to lower profit margins as inexperienced installers drive down prices. At worst, a few unreputable installers may even resort to unethical practices to survive, damaging the industry’s reputation. This, yet again, highlights the importance of research for selecting an established installer with a record of providing excellent service, a quality product, and long-term system maintenance.

Correcting market oversaturation in the coming years According to Henkemans, the market will correct itself in the next few years through a combination of three factors. “Supply and demand will, inevitably, reach equilibrium again, and prices will stabilise, which will benefit both the user and the installer. But as things stand, new entrants who want to make a name for themselves or are looking to make quick money are trying to undercut the competition by drastically under-pricing installations by providing sub-standard, low-quality solar systems,” he says. “This said, the market is already catching on to this tactic. We are seeing a shift in the time homeowners spend researching an installer before committing to a long-term solar investment. And as homeowners increasingly turn to the more established installers, we are experiencing a second market correction, namely market consolidation.” As supply continues to outpace demand, a growing number of less-invested installers are quickly exiting

the market, allowing established businesses to regain market share. A few smaller installers will also probably merge to form a larger, more stable entity, which may also help stabilise the market further. Finally, Henkemans adds that external influences such as regulatory changes, increasingly sophisticated technological innovations, and growing environmental sustainability concerns may also boost calls for the professionalism of the solar industry and decrease its vulnerability to opportunists. “The industry is in a precarious position right now, but there is always some turbulence early on in any new industry. It does seem like the wave is cresting, and we should return to normalcy quite soon. “But as always, our recommendation to any homeowner seeking to install solar is to look into the provider or installer's background, ask for testimonials, and consider whether they will provide proper long-term support after the system has been installed,” concludes Henkemans.

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waste RENEWABLE ENERGY

SOLAR PANEL & BATTERY

Looking back, 2023 will undoubtedly go down in history as the year that South Africa's corporate and civil society "went solar" in a way never seen before.

In an effort to avoid the crippling effect of loadshedding, hundreds of thousands of individuals and companies recently opted to invest in solar panels. According to a BusinessTech report, South Africa's imports of solar panels increased three times from the previous quarter to an all-time high of R3.6 billion in the first quarter of 2023. “Whilst this is good news for renewable energy, we also need to think about the long-term implications that even this ‘green energy’ will have on the environment,” cautions Dr Mark Williams-Wynn, KZN Branch Committee Member of the Institute of Waste Management of Southern Africa (IWMSA). "In the coming years, we will have to deal with the recycling of millions of solar panels and batteries that are currently being imported into South Africa.”

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RENEWABLE ENERGY

The challenge: millions of discarded panels and batteries in a decade Williams-Wynn says there’s now an estimate of between 20 million and 25 million solar panels in the country after the recent influx. Most have an expected lifespan of about 20 years and according to Williams-Wynn, South Africa should be ready for mass recycling in about 10 to 15 years’ time. “That is when we will see thousands of panels having to be replaced with new ones, and when recycling the old products correctly will become critically important,” he says. He explains that one of the challenges with solar panel waste is that they are banned from landfills, as they are potentially hazardous to both human and environmental health.

the waste management of the batteries used in solar systems as well. “I believe this to be the bigger challenge,” WilliamsWynn warns. “The batteries in household solar panels are lithium iron phosphate batteries, also known as LFP (lithium ferro phosphate) batteries. The only material in this battery that has some value when recovered is lithium. The iron and phosphate of such low value that it’s not really economically viable to try and recover them.” Furthermore, the product is highly flammable. “And once that fire starts, it is self-sustaining,” he warns. “They don’t need oxygen to burn, and even when smothering burning batteries with foam they can continue to burn.”

"We need to adopt alternative waste management solutions, such as recycling, refurbishing and repairing, or reusing them in lower-demand applications," he continues, adding that emphasis needs to be placed on

The solution: adherence and power of the customer’s voice The success or failure of South Africa's solar waste story will depend on how responsibly we operate in the here and now, Williams-Wynn notes. “The methods for properly disposing of and recycling panels and batteries are constantly developing and improving - but if we do nothing now, we could face a catastrophe later,” he says. “There is simply not enough adherence to the Extended Producer Responsibility (EPR) regulations which took effect in 2021 and hold producers (which includes manufacturers, importers, distributors, and retailers) accountable for the end-of-life management of their products. “There are many reasons for this, including expenses, control, and enforcement, but in the end, the environment suffers - and it will be everyone’s problem in future,” he adds.

According to Williams-Wynn, both the general public and solar installers have the ability to change things. “Customers often don't realise the collective power that they have. To ensure that our solar and battery producers are complying with the EPR regulations, we must all exert pressure on them. If that happens, South Africa will be equipped and ready when the solar waste wave strikes in a few years.” 

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SUSTAINABILITY

Meeting 2050 Net Zero

emission requirements Applying ISO standardisation principles and processes could be a gamechanger for businesses under pressure. South Africa hopes to reach net zero emissions by 2050 in its low-emission development strategy. While the target has already received significant buy-in from local companies and institutions, none are under any illusions about the challenge that lies ahead. As Sune van Niekerk, a consultant and compliance specialist at World Wide Industrial and Systems Engineers (WWISE), points out, South Africa is currently not in a position to inject finances into repairing an environment ridden with the toxins associated with these emissions. “Consequently, rural communities will be the first to bear the brunt, as quality of life, livestock and the overall surrounding environment will deteriorate, making it difficult to survive. Remedying the situation will require tremendous effort from government, and it would involve a significant amount of time to rebuild and remediate those communities.” It will also require all South Africans to band together to overcome both environmental and economic obstacles, she says. 54 sabusinessintegrator.co.za

Net zero emissions map – where does your business stand? It is becoming increasingly important for businesses to determine where they are on the net zero emissions map, so they can identify the gaps between their current state and what is needed to reach their desired state. “They need to develop strategies and a phased approach is best in terms of measuring and tracking progress. By breaking up what needs to be done in phases, the business can achieve small targets which will hopefully assist them in reaching the bigger goal,” Van Niekerk says. Given that net zero 2050 is also a global target, it is important for businesses to align with international standards. To this end, ISO standardisation principles and process developed by the International Organisation for Standardisation (ISO) will be key.

SUSTAINABILITY

WWISE Legal Manager, Sibongile Ncwane, says there are several important standards that should be implemented in this regard. These include: ISO 14064, Greenhouse Gases

• Specifies principles and requirements at the organisational level for quantification and reporting of greenhouse gas (GHG) emissions and removals. • Details principles and guidelines for GHG projects for quantification, monitoring and reporting of emission reductions and removal enhancements. • Provides principles, requirements, and guidelines for conducting GHG information validation and verification.

ISO 14067, Greenhouse Gases, Carbon Footprint of Products

This standard provides guidelines for quantifying and reporting the carbon footprint of a product (CFP) based on life cycle assessment (LCA).

ISO 14090, Adaptation to Climate Change

This standard provides principles, requirements, and guidelines for climate change adaptation planning.

ISO 14080, Greenhouse Gas Management and Related Activities

This standard provides a framework and guiding principles for methodologies on environmental management, particularly relating to GHG emissions and removals.

WWISE Senior Consultant and Project Manager, Simone Samuel, believes leadership plays a big role in the integration of ISO standards into business processes. “It is important that the commitment from top management is clearly demonstrated through their actions and supporting various process owners. Thereafter, the culture change within the organisation will not be met with resistance.”

Implementing these standards carries numerous benefits From an economic perspective, operational efficiency can be improved, and regulatory risks and costs reduced. A company might also be granted access into new markets and appeal to more stakeholders and investors. In terms of environmental benefits, carbon footprints can be reduced, pollution prevented, and biodiversity protected. These efforts may also aid in mitigating the effects of climate change.

From an economic perspective, operational efficiency can be improved, and regulatory risks and costs reduced. A company might also be granted access into new markets..."

South Africa is currently experiencing the impacts of climate change, including droughts, extreme weather events, rising sea levels and shifting agricultural patterns, committing to addressing emissions and contributing toward a sustainable future will enhance South Africa’s appeal to investors and foreign business, the WWISE experts say.  sabusinessintegrator.co.za 55

OPINION

Our climate POLICY MUST BE JUST A just transition is necessitated not only by domestic climate policy but also by changing rules of global engagement. By Lebogang Mulaisi, Chief Operating Officer, Presidential Climate Commission

New carbon border taxes and similar instruments will rapidly render exports from carbon-intensive economies like SA’s uncompetitive. As a coaldependent economy, SA faces enormous transition risks associated with international climate mitigation policy developments since the Paris Agreement. The adoption of the Just Transition Framework clearly captures the vision for shifting to an equitable, zerocarbon economy and identifies key policy areas and principles to achieve it. The national government has also taken steps towards aligning itself with global initiatives and agreements like the Paris Agreement and the United Nations Framework Convention on Climate Change (UNFCCC).

Climate finance and investment needs – ensuring a just energy transition South Africa is at a pivotal moment in its climate action trajectory. One of the PCC’s central tasks over the next few years will be informing the policy priorities and capital allocation decisions guiding the investment and capital. The launch of South Africa’s Just Energy Transition Investment Plan (JET-IP) by President Cyril Ramaphosa

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was an important moment for our country. It was the first time that such a broad and complex societal issue as the Just Energy Transition (a critical component of South Africa’s Just Transition to a faster growing, greener, climate resilient economy and society) was elaborated in a coherent and financially quantified manner. The PCC’s work in 2023 was set against the backdrop of the Just Energy Transition Investment Plan designed to accelerate the decarbonisation of the electricity grid, increase investment in renewable energy, and enhance innovation in electric vehicles and green hydrogen. The JET-IP covers a range of complex and intertwined issues in an accessible and comprehensible way, setting out an initial transitional pathway for the three sectors covered – electricity, new energy vehicles, and green

OPINION

hydrogen. The JET IP represents one milestone in a longer-term process and the partners will continue working together into 2023 and beyond. To achieve a just energy transition and seize the opportunities, we need to focus more on how the investment plan could be mainstreamed into the plans of other government departments and identify related synergies. This will also significantly broaden the scope of employment opportunities. Amongst others, the JETIP needs to be aligned with and integrated into: • National Development Plan • Integrated Resource Plan • Integrated Energy Plan • South Africa’s NDC • Just Transition Framework • Medium-Term Strategic Framework (MTSF): 2019 – 2024 • Eskom’s JET Strategy • Eskom Social Compact • Industrial Policy Action Plan (IPAP) and other sector master plans • National Employment Vulnerability Assessment (NEVA) and Sector Jobs Resilience Plans (SJRPs) • National Skills Development Plan, 2030 • The Human Resource Development (HRD) Strategy Towards 2030

Such work includes the development of a comprehensive implementation plan, informed by more detailed information on the financing structures, timing of financial flows, and other implementation modalities. This will, inter alia, address governance, accountability, results monitoring, and evaluation mechanisms to ensure the achievement of desired and impactful outcomes, with refinements where necessary.

The PCC looking ahead The timely and just transformation of South Africa’s energy mix is crucial for improving energy security, eliminating energy poverty, and reducing emissions associated with fossil fuel-based electricity generation. This includes the definition of an appropriately paced coal-fired power station decommissioning schedule and the identification of financial mechanisms to support that transition. The goal is to complete an electricity transition plan, shared by all social partners, which the government can use to inform regulatory and planning instruments such as the Integrated Resources Plan. The PCC supports the proposed measures for industrial development by phasing in local content targets, building local certification capacity, setting up a one-stop shop through InvestSA, building linkages with sectors such as steel and batteries master plans, using trade policy, and extending tax incentives for the sector. However, these measures are not sufficient on their own. South Africa will not achieve the deep and sustained industrialisation, localisation and competitive technology objectives that the global shift to renewable energy - However, the magnitude of this task requires substantial financial support, which is where climate finance becomes pivotal. 

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Q&A: AMSOL

Blue Economy holds

significant potential for Africa

An experienced business leader, Dan Ngakane, African Marine Solutions Group (AMSOL) CEO, has a track record spanning 20 years across the energy, transport and mining sectors. SOUTH SOUTH AFRICAN AFRICAN BUSINESS INTEGRATOR BUSINESS INTEGRATOR spoke to him about unlocking opportunities within the Blue Economy. DAN NGAKANE | AMSOL CEO

What are your thoughts on the potential of the Blue Economy, and how does AMSOL feature in this? I believe that the Blue Economy holds significant potential considering Africa's strategic location between America and Europe, which has made it a critical region for shipping routes and maritime trade. Positioned between the Atlantic and Indian Oceans, the extensive African coastline provides access to major sea routes. It is also home to a wealth of marine resources, making it well-positioned to harness the benefits of the Blue Economy. Africa's waters are not only rich in fish stocks but also in minerals and oil and gas reserves – if managed well, these resources can drive economic growth. 58 sabusinessintegrator.co.za

As a maritime player in the region which provides marine services to clients in-port and offshore in South Africa, Ghana, Namibia and Mozambique, AMSOL is committed to the future sustainability of the oceans economy which is why we prioritise localisation in each of our areas of operation. By doing this we ensure that AMSOL stakeholders in the region derive benefit from the company’s success.

What is required holistically to realise the positive impact the Blue Economy can bring about? Realising the potential of the Blue Economy in Africa requires a sustainable approach, which would include amongst other things:

Q&A: AMSOL

• Promoting localisation to ensure that local communities benefit from the sector through job creation, skills development, and the procurement of goods and services from local businesses. • In the energy sector, prioritising safety and risk management in oil and gas operations to prevent incidents and ensuring safety of life and the protection of the environment. • Enhancing transparency and accountability to prevent unethical conduct and ensure that revenues benefit the country or region from which the resources come. • Creating stability through a predictable legal environment with clear and consistent legislation. • Collaborating with other industry stakeholders to access technical expertise, share knowledge, and build competency within the African maritime sector.

What are some key projects that AMSOL is working on, and how will this enable positive and sustainable growth? As a company that services clients in different sectors for both long term and short-term contracts, we have a range of projects which we are currently involved in that support critical elements of the Blue Economy and its value chain. These include: • The management, operation, and maintenance of offshore tanker terminals (both fuel and LPG, ensuring continuity of fuel supply); • The delivery of marine fuel on behalf of Oil Majors using tankers and bunker barges; • Use of vessels to support specialised research operations including marine life, fish stocks and climate; • The provision of offshore supply solutions using supply launches and a DPII AHTSV servicing the world’s largest offshore diamond mining fleet and offshore production facilities; • The management of specialist vessels and delivery of a comprehensive manning, procurement, and maintenance solution to ship owners, including South Africa’s Antarctic supply and environmental research vessels; and • The provision of a proactive pollution prevention service in partnership with the South African Government using a versatile offshore tug and experienced emergency response personnel.

What are the Blue Economy opportunities from mining, and oil and gas perspective? Africa is known for its wealth of natural resources, and many African countries have significant deposits of various minerals. The economic opportunities in these sectors primarily revolve around the exploration, extraction and exportation of these mineral resources and often unique transhipment operations together with marine support activities are required. Oil and gas exploration and production can contribute significantly to a country’s economic growth through employment opportunities such as drilling, engineering, logistics and support services; investment in infrastructure within ports to support the exploration and production activity; and eventually through the sale of the resources. We can also increase the energy security of the country so that it is less dependent on importing energy resources. Continuity and consistency in the value chain to high international HSE standards are critical in these high risk marine projects.

The economic opportunities in these sectors primarily revolve around the exploration, extraction and exportation of these mineral resources and often unique transhipment operations together with marine support activities are required."

How does AMSOL assist these sectors? AMSOL provides upstream support to the offshore oil and gas sector in which risk management, safety, environmental protection, and experience is key. The company offers solutions that fulfil a variety of specialist marine requirements and are delivered to high international standards. Our involvement in these diverse operations means that skilled AMSOL personnel are sought after for specialist and complex projects – and each job is an opportunity to ensure that African seafarers and offshore personnel build essential experience required for the future sustainability of the oil and gas sector. sabusinessintegrator.co.za 59

Q&A: AMSOL

To ensure that we retain these scarce skills for future opportunities, AMSOL focuses on experiential training and development. This allows for exposure to new operations and the company’s fleet of anchor handling tug supply vessels, tankers, bunker barges, offshore supply launches and specialist vessels operating in South Africa, Namibia and Ghana serve as the training platform.

"To ensure that we retain these scarce skills for future opportunities, AMSOL focuses on development." experiential training and development.

What are the key highlights of AMSOL’s activities in these sectors? Recent operations include a charter to Azinam in support of the drilling of an exploratory well off of South Africa’s west coast, which provided an opportunity for seafarers on the AHTSV 'Umkhuseli' to prove their anchor handling experience under offshore exploration conditions as part of a multi-disciplinary team. The Umkhuseli conducted intensive anchor work for the Gazania project and pre-laid an 8-leg mooring system before the rig Island Innovator arrived on site. This process required pre-tensioning of the anchor legs to over 200 tons. As a result, the rig was able to immediately go onto her spread when she arrived without any down time and commenced drilling without delay. The tug provided continuity in support services to the client’s team for the duration of the project and once the well was completed, recovered the mooring spread and returned it to Cape Town. A number of maintenance interventions on the Single Point Mooring (SPM) terminal offshore from Durban have provided similar opportunities for exposure to new operations. In 2020 and 2021, maintenance work included the replacement of all eight anchor legs of the mooring system. In 2022, during a scheduled outage period, AMSOL was contracted to provide engineering, procurement, and construction services for the replacement of the 70-metre-long north and south subsea hoses. Project teams often include junior seafarers, divers, and support staff as a means of exposing personnel to niche operations under controlled, risk managed conditions.

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Q&A: AMSOL

... cutting edge systems that use artificial intelligence to alert us to potential cyber threats and autonomously respond to and prevent cyber-attacks. How does AMSOL leverage technology in its operations? AMSOL has been able to invest in new assets in recent years which provides our seafarers with opportunities to work with newer technology and innovation across the fleet. It is definitely a key strategic focus area for the business as we look into the future. We use an effective International Ship Management Code Compliant Ship Management system developed in-house and also implement cutting edge systems that use artificial intelligence to alert us to potential cyber threats and autonomously respond to and prevent cyber-attacks.

How does your background in the mining and energy sectors assist AMSOL in optimising efficiencies under your leadership? Having worked in the mining and energy sectors that now form part of AMSOL’s target market, I understand what these clients want and can therefore offer new insight which is based on a client-centric approach. There are also many similarities in these sectors due to the critical nature of its operations, which means I can use my previous experience to drive the safety culture. I also bring a fresh perspective into the business which is often a catalyst to unlock value in similar settings.

Tell us a bit about driving economic prospects while taking into consideration environmental and legislative factors. Protection of the environment is a key priority at AMSOL – it is our license to operate, which is why we take it so seriously. AMSOL remains committed to the protection of the environment in which we provide marine solutions to our clients and comply with the highest international standards. We participate in frequent external audits and verifications and implement best practice in technical and operational excellence.

Our approach to sustainability underpins all of our operations. An example of this is our partnership with the Department of Transport over the last two decades to protect the South African coastline, which demonstrates our commitment to protecting the marine environment.

What is required from the marine, mining, oil and gas, transport, legislative and environmental sectors to address the realities SA faces? We need to continue our unwavering commitment to transformation and investing in education. This has been a priority at AMSOL for many years and we invest in both statutory and developmental training to support our talent pipeline. In support of the Sector Education and Training Authority’s strategic goals, AMSOL’s Cadet Training Programme included 38 trainees and cadet candidates in 2022; the largest number that has ever been taken for both navigation and engineering learnerships. 58% of trainees and cadets are black females. The company has also extended the trainee programme to Namibians for Namibian operations. By investing in training and development we are expanding the talent pool and building a skilled workforce that can drive the future sustainability of these diverse sectors. In addressing our energy challenges, we need to think differently for the medium and long term and implement multiple solutions as we navigate a way forward. I am positive that leveraging projects in the energy sector can impact social challenges to address skills development needs as well. 

An experienced business leader, Dan Ngakane has an excellent track record spanning 20 years across the Energy, Transport and Mining sectors in South Africa in roles at Barloworld, Anglo Platinum and Eskom. His qualifications include master’s degrees in engineering and in business administration, as well as a Bachelor of Law. He joined AMSOL in July of 2023 and leads a dynamic business driving transformation of the maritime sector in the region.

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OIL & GAS

Developing the oil & gas sector for

economic growth Our rich endowment with mineral and petroleum resources, which include oil and gas, gives us impetus to drive economic growth and development. We believe that these resources must be explored, in accordance with the prevailing environmental framework that ensures exploration is conducted with utmost environmental care. By Makhosonke Buthelezi, Chief Director: Communication Management, Department of Mineral Resources and Energy

The Petroleum Agency of South Africa estimates that South Africa holds 27 billion barrels of oil and 60 trillion cubic feet of prospective gas resources on the south, west, and east coasts. The estimate for the onshore exceeds 200 trillion cubic feet of prospective shale gas resources, biogenic gas, and coal bed methane.

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If strategically harnessed and assessed, these resources could yield successful prospects for Just Energy Transition and a sustainable energy mix. This will ensure the exploration and sustainable development of the country’s oil and gas resources, which integrates economic, social, and environmental protection.

When sustainably explored and produced, the petroleum resources will contribute to efforts that seek to address the continued challenge of electricity blackouts and rising fuel prices. All that is required is for all stakeholders to cooperate and collaborate in government’s efforts to promote investments in the upstream petroleum sector.

OIL & GAS

Investment efforts in the sector often stifled by litigation However, investment efforts in this sector are often stifled by litigations sponsored by mostly foreign non-governmental organisations whose objective is to discourage investments into the sector. Without dismissing the significance of NGOs in holding government accountable, one suspects there is more than meets the eye. Recently, the Minister of Forestry, Fisheries and the Environment, Barbara Creecy, dismissed all the appeals lodged by several NGOs and individuals on the proposed offshore drilling of exploration wells on the south-west coast of South Africa. Minister’s Creecy decision, as the appeal authority, not only paves the way for TotalEnergies to proceed with exploration work, but also gives credence to the initial decision by the Department of Mineral Resources and Energy (DMRE) that it had taken all requirements into consideration when granting the exploration right.

Initiatives have a total investment of R288 billion South Africa’s economy stands to benefit a great deal from exploration initiatives such as TotalEnergies’ Luiperd -Brulpadda project in the Western Cape, Virginia gas in Free State, the Lephalale Coal Bed project in Limpopo, and the Afro Energy project in Amersfoort’ and Volksrust in Mpumalanga. These initiatives have a total investment of R288 billion that will contribute to addressing unemployment, poverty, and inequality through local economic development. Exploration of oil and gas resources is a necessity for our country, particularly as a developing nation. According to a report published by the National Business Initiative, Business Unity South Africa and the Boston Consulting Group, natural gas can play an important role as a transition fuel to replace more emissions-intensive fossil fuels like coal and diesel in South Africa.

The Petroleum Agency of South Africa estimates that South Africa holds 27 billion barrels of oil and 60 trillion cubic feet of prospective gas resources on the south, west, and east coasts."

The report states that: “As South Africa decarbonises its economy, gas can, if affordably supplied, play a key role as a transition fuel to replace more emissions-intensive fossil fuels like coal and diesel, and provide flexible capacity to enable a rapid scale-up of renewables, until alternative energy storage solutions and greener fuels become affordable.” However, there appears to be a polarisation of the debate about fossil fuels and renewable energy, whereas the combination of all energy sources at our disposal is crucial for ensuring security of energy supply. sabusinessintegrator.co.za 63

OIL & GAS

Oil & gas exploration has great potential to protect economies It is important for South Africa and Africa at large to unlock oil and gas exploration as that has great potential to protect economies from the volatile international prices, and will cushion African countries from vulnerability caused by geopolitical conflicts. South Africa’s energy independence as a net importer of oil and gas is greatly reliant on the potential boom of the upstream oil and gas sector, given the country’s vulnerable to geopolitical events and oil price fluctuations. The inconsistent rising international prices of crude oil continue to have dire effects on high fuel prices, which results in food inflation and increased transport costs that negatively affect poor households. Natural gas can be used directly as a cheaper transport fuel with at least 30% less carbon emissions and no nitrogen (NOx) and sulphur (SOx) oxides associated with the use of diesel. This has been demonstrated in the country at a pilot project of the recently discovered natural gas in the Free State.

Will create access to affordable and clean energy Many people living in rural Africa still use traditional cooking methods, such as burning firewood, paraffin, coal and solid biomass, which has been found to impair individuals' and harm the environment. Access to "affordable and clean energy" has been established as one of the UN's Sustainable Development Goals (SDGs), with the goal of achieving universal access to clean cooking technologies by 2030. Therefore, LPG, as a clean-burning fuel, should be extensively disseminated at a low cost and is crucial to the success of increasing clean cooking availability. The successful development and expansion of the LPG sector in the South Africa will help in achieving universal access to clean cooking, eliminating energy poverty, reducing unemployment, and inequality. It is therefore in our interest to exploit our resources and determine the conditions that will alleviate global oil and gas prices. Hence the DMRE is championing policy initiatives such as the Gas Master Plan, the Upstream Petroleum Development Bill and LPG Rollout Strategy, which will promote and propel development of these sectors. The de-coupling of the Upstream Petroleum Development Bill from Mineral and Petroleum Resources Development Act, 2002 (MPRDA) will also bring regulatory certainty and boost investor confidence. South Africa needs to urgently accelerate exploration of oil and gas both onshore and offshore, to reduce its dependency on foreign resources while also stimulating economic growth and development, as well as ensuring security of energy supply.  64 sabusinessintegrator.co.za