KDG wastes no time in collecting on R16 billion MC Mining investment

Date: 13 September 2024 By: Andries van Zyl

A ferrochrome and alloys smelter plant, a coal-wash plant, a coke plant, a heat-recovery electricity plant, a photovoltaic power station, and office and staff living facilities for a factory all form part of the latest round of applications for environmental impact assessments (EIAs) regarding the Musina Makhado Special Economic Zone (MMSEZ) in the Limpopo Valley. Also included are applications for an atmospheric emissions licence (AEL) and a water-use licence (WULA).

This is according to a notice placed this week in the Zoutpansberger’s sister publication, the Limpopo Mirror. One of the applicants is the Kinetic Development Group (KDG), which the newspaper reported on last week. It was reported that KDG, a China-based company, is in the process of purchasing a 51% post-transaction share in MC Mining through a US$90 million (R16 billion) investment.

In a media statement, MC Mining states that the proposed investment by KDG will not only advance the mining company’s flagship Makhado steel-making and hard-coking coal project just north of the Soutpansberg into production, but it is also expected to accelerate the broader strategy of the group to develop their various tenements in the Vhembe region of Limpopo Province, including the Greater Soutpansberg Projects (GSP) and the Vele Aluwani Colliery (Vele).

This announcement has environmentalists worried as MC Mining is now essentially a Chinese coal-trading company, which holds the mining rights granted by the Department of Mineral Resources and Energy on 107,000 hectares on 97 farms in the Vhembe region. Under South Africa’s Mineral and Petroleum Resources Development Act, the holder of mining rights acquires surface rights to land they have not purchased, i.e. they have the right to commence mining operations on someone else's land.

KDG did not waste any time in getting the ball rolling with the aim of collecting on their investment. They are now jointly, with the South African Energy Metallurgical Base (Pty) Ltd (EMSEZ) company, applying for the above EIA, AEL, and WULA. KDG is the applicant for a 125,000- to 1,000,000-tonnes-per-year ferrochrome and alloys smelter plant on the farms Dreyer 526 MS and Van Der Bijl 528 MS. EMSEZ is the applicant for a 10-million-tonnes-per-year coal wash plant and 3-million-tonnes-per-year coke plant; a 600MW heat-recovery electricity power plant; a 1,000MW photovoltaic power station; and office and staff living facilities for the factory. This is also scheduled to take place on the above-mentioned farms, as well as on the farms Steenbok 565 MS and Antrobus 566 MS.

Gudani Consulting has been appointed to undertake the public-participation process for the scoping and EIA process, as well as for the WULA for all the above projects within the MMSEZ area. Comments on the proposed projects can be submitted in writing to Gudani Consulting via email or post. In this regard, people can contact Setenane Nkopane at (082) 828-3412 or send an email to [email protected]. The postal address is PO Box 714, Fauna Park, Polokwane, 0787.

“To ensure that you are identified as an interested and/or affected party (I&AP), only in terms of the Scoping/EIA/IWULA/AEL processes or if you have any comments or objections towards the proposed projects, please submit your name, contact information, and comments to Gudani Consulting at the above contact details within 60 days of the placement of this notice,” the advertisement reads. The advertisement appears in the Limpopo Mirror of 13 September.

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Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.

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