WATERBERG DISTRICT MUNICIPALITY MINING DEVELOPMENT STRATEGY PHASE THREE: INTERVENTION SCENARIO AND STRATEGY DISCUSSION DOCUMENT GLEN STEYN AND ASSOCIATES 31 MARCH 2006 TABLE OF CONTENTS 1. PURPOSE AND BACKGROUND 3 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 SWOT ANALYSIS FOR MINING IN WDM Mineral Resources Water Skills Logistics Electricity Business Development Land Use Planning Institutions 5 5 16 17 21 22 23 24 24 3. 3.1 3.2 3.3 SCENARIO FORMULATION Business as Usual Best Case Intermediate Case 27 27 28 30 4. 4.1 4.2 4.3 4.4 MINING DEVELOPMENT STRATEGY FORMULATION Goals and Objectives Incentives Business and Community Development Regional Integration 31 31 31 31 31 5. SUMMARY AND CONCLUSION 32 Annexure One: Information on Prospecting in Waterberg District 34 Annexure Two: Operating Mines in Waterberg District 36 2 1. PURPOSE AND BACKGROUND The purpose of this strategy formulation process is to provide WDM with a policy instrument by which leadership and strategic direction can be given to the mining industry for: Increased competitiveness on a sustainable basis, Increased investment as a basis for job creation and economic growth, Improvements in the quality of life of the district population, including priorities such as BEE, as well as reductions in HIV/AIDS and poverty, Regional integration. This mining development strategy is part of a broader intervention that is aimed at accelerated economic development in Waterberg District. This includes sectoral development strategies for agriculture and tourism. The mining development strategy will be compiled in the following five distinct phases: Policy Assessment Current Situation Assessment Scenario Analysis Project Development Opportunities, and Implementation Plan. During the policy assessment it was found that the Mineral and Petroleum Resources Act gives WDM no direct jurisdiction in terms of mining, but it is obliged to facilitate the development process. It is therefore imperative that a good working relationship should be established between WDM and the DME Regional Manager in Limpopo. The municipality is specifically obliged to facilitate the economic and mining development processes by building networks and promoting good working relationships between various institutions in the sector, such as private companies, parastatal development organizations and public infrastructure agencies. An interface with national strategies such as the small scale mining initiative, integrated manufacturing strategy, as well as the national research and development strategy, should be created. WDM has an important role to play in promoting the stake of historically disadvantaged companies that are based in Waterberg District within the targets of the mining charter. The charter is not geographically prescriptive and any potential gains for the District in this regard will have to be internalized by way of a deliberate intervention strategy. The relevant provincial growth and development strategy is to adopt the development cluster value-chain approach, firstly as a vehicle to raise the international competitiveness and investment rating of the Province. Secondly, the approach should be used to combine public and private sector contributions towards development and thirdly, to align the interventions of various public development institutions for greater impact. Two of the seven 3 competitive clusters for Limpopo that were identified and approved in the Provincial Growth and Development Strategy fall within the mining sector of Waterberg District. These are the platinum and coal mining clusters with their associated value chains. The Marketing and Investment Strategy for WDM also recommends the cluster value chain approach as the appropriate instrument for development planning purposes and the establishment of a District Investment Council with an operations manager is proposed to drive the implementation process. LED project proposals include a programme to facilitate SMME participation in the mining industry, raising the wall of the Mogol dam, upgrading the road from Modimolle to Lephalale, skills development and the establishment of sectoral working groups. South Australia is considered to be a useful example of international practice in terms of development planning in the mining sector and its results will be assessed for the purpose of comparison. The rocks covering the Waterberg district area are well endowed with a significant number of economically important minerals that include the platinum group metals, iron, coal, andalusite, tin and fluoride. Some of these minerals are currently exploited for their economic value while exploration is on-going in order to expand the lifespan of the existing mines and also to identify and develop new deposits. The current sales value of mining production from WDM has increased beyond R14 billion, which implies a contribution to GGP of approximately R4.5 billion. Capital investment and employment in mining appeared to be decreasing, but has improved in conjunction with the commodity boom. A business as usual scenario suggests that mining will remain a significant sector in the Waterberg District economy, but that its vast potential will not be fully realised. The contribution from this sector to poverty reduction will therefore also be limited. This scenario should be avoided in order to promote the development objectives of WDM. Accelerated development will require a concerted intervention, which is the topic of subsequent phases of this mining development strategy formulation process. This report deals with the formulation of business-as-usual, best case and intermediate case scenario formulation. It will include a SWOT analysis for mining development and a proposed strategy to reach the best case scenario. It is still a discussion document and will be finalised after stakeholder feedback has been received. Report Three will cover project development opportunities as well as the implementation plan and this will be released as a discussion document before the end of April. All three reports will be consolidated into a final strategy document once stakeholder comments have been received. 4 2. SWOT ANALYSIS FOR MINING IN WDM 2.1 Mineral Resources Waterberg District is richly endowed with a number of economically significant minerals, including the platinum group metals, coal and iron. Some of these minerals are currently being extracted while exploration is ongoing in order to expand the lifespan of the existing mines and also to identify and develop new deposits. The commodity super-cycle that is currently being experienced in the global economy provides the district with valuable window of opportunity. A description of the most valuable mineral commodities and their future potential is structured in the sequence of their current economic importance. It will cover market trends, opportunities in Waterberg District and constraints on development. A geological assessment per commodity is contained in Report One. 2.1.1 PLATINUM GROUP METALS International demand for platinum rose to an all-time high of 6.71 million ounces in 2005. Despite a 2% increase in supply to 6.59 million ounces, the market remained in deficit for the sixth consecutive year1. The main applications for platinum are for auto catalysts, jewellery and industry, as illustrated in the table below. Table 2.1.1: Sources of Platinum Demand Application (‘000 oz) 2005 2004 Auto catalyst (gross) 3,860 3,560 Auto catalyst (recovery) (800) (705) Jewellery 2,020 2,160 Industrial 1,615 1,535 Investment 15 0 Total demand 6,710 6,590 Movement in stocks (120) (130) Source: Johnson Matthey in Anglo Platinum Limited Annual Report 2005, p20 Auto catalysts account for almost 60% of total demand. These catalysts typically contain either platinum or palladium or both. They are fitted to all new vehicles in response to legislation that is becoming increasingly more rigorous in order to control the environmental pollution impact of vehicle emissions. There are also many retrofit programmes worldwide, requiring large diesel buses and trucks to be fitted with diesel oxidation catalysts. These developments are driving the demand for platinum. 1 Anglo Platinum Limited Annual Report 2005, p20 5 Recent high prices have caused a slight reduction in total platinum sales for jewellery manufacturing. This is especially evident from Chinese buyers, who account for almost half of total platinum demand for jewellery. Demand for platinum for industrial applications has risen, despite the recent increase in the metal price, with purchases from the electrical and glass sectors being particularly strong. Fuel cells are expected to become the primary application for platinum in the future. Platinum promotes a reaction between hydrogen and oxygen to produce electricity within a fuel cell. The concept has been understood for a long time, but its commercial application is only recently being explored. The primary driver of this commercial focus has been the increasingly severe emission control legislation, because fuel cells produce no noxious emissions. The significant increase in oil prices, which is related to fossil fuel supply, is also promoting the focus on commercial applications for fuel cells. Current fuel cell sales estimated at around US $ 338 million is expected to grow to US $ 100 billion by 2050 with some 250 million Fuel Cell Vehicles anticipated by 2050, according to a technology diffusion forecast by WP Nel2. The demand for platinum is therefore expected to increase more rapidly in future and the supply deficit will increase unless production is considerably expanded. South Africa is the major supplier of platinum in the world, as indicated in the table below. Table 2.1.2: World Platinum Supply Country 2005 2004 South Africa 5,120 4,970 Russia 860 850 North America 340 385 Others 270 255 Total Supply 6,590 6,460 Source: Johnson Matthey in Anglo Platinum Limited Annual Report 2005, p20 The dominant position of South Africa is evident from the fact that it provides almost 78% of world production. It is by far the most important commodity in the national mining sector, generating revenues of R33 billion in 2004. The 2005 production profile per province and per company in South Africa is indicated in the table below. (Gold is in second place with revenues of R29 billion, followed by coal with R28 billion. 2 Diffusion of fuel cell vehicles, WP Nel, October 2004 6 Table 2.1.3: Platinum Production per Province in South Africa, 2005 Mine (‘000 oz) Limpopo North-West Total Angloplat: Amandelbult 556 556 Angloplat: Bafokeng-Rasimone 195 195 Angloplat/Aquarius: Kroondal 174 174 Angloplat: Lebowa 112 112 Angloplat JV: Modikwa 129 129 Angloplat: PPRust 205 205 Angloplat: Rustenburg 839 839 Angloplat: Tailings Retreatment 50 50 Angloplat: Union Section 314 314 Aquarius: Marikana 100 100 Barplats Crocodile River 300 300 Implats: Rustenburg 1,115 1115 Implats: Marula 31 31 Lonmin Platinum Limpopo 50 50 Lonmin 630 630 Northam 200 200 Wesizwe Total 1,597 3,403 5,000 Source: Company Annual Reports; Lonmin and Barplat production was estimated. The bulk of platinum production in South Africa (68%) is extracted from North-West Province and the remaining 32% from Limpopo. Within Limpopo, the Waterberg District is the largest production area (1,275 oz out of 1,597 oz or 80% of the total). Sekhukhune District is the second largest production area in Limpopo. The comparatively small Lonmin Mine at Lebowakgomo is in the Capricorn District. The dominant platinum mining company in the Waterberg District is Anglo Platinum. This company is also the leading platinum producer in the world. Amandelbult and Union Sections in Thabazimbi have 130 million tons of proven ore reserves between them and the current mining rate is approximately 6 million tons per year at each mine. Potgietersrus Platinum has a proven reserve of 280 million tons and its current extraction rate is 57 million tons per year. A flow diagram of the platinum production process is provided in figure 2.1.1 below. It reflects the four main phases in the process, being exploration, extraction, smelting and refining, with specific reference to the position of Waterberg District in the process. A table that contains prospecting information per farm and per commodity is attached as Annexure One. It appears that prospecting for PGM’s is currently only occurring on the farms Lily and Beauty. This information will be verified with DME in Limpopo. 7 Figure 2.1.1: The Platinum Production Process Exploration Extraction & Concentrating Smelting 550,000 0z Amandulbult (Thabazimbi) Refining 2.2 million 0z Polokwane Rustenburg 310,000 0z Union (Thabazimbi) 202,000 0z Waterval (Rustenburg) Northam (Thabazimbi) 201,000 0z PPR Plats (Mogalakwena) Mortimer 8 The spatial distribution of platinum mining could change considerably in future when the geology of platinum resources is considered. An authoritative geological review by Cawthorn (1999)3, reported probable reserves of 204 million ounces of platinum in the Bushveld Complex. This is based on fully evaluated drilling results. Inferred resources are considerably more at almost 940 million ounces to a depth of 2km. The available data shows that Limpopo is the leading host with 38.5% of platinum reserves in the country, followed by Mpumalanga with 35% and North West Province with 26.5%. Within Limpopo, the Waterberg District hosts 60% of platinum reserves and Sekhukhune District 35%. Potgietersrus Platinum, for example, has 280 million tons of proven reserves on the Platreef, whereas the current concentrator throughput is 5 million tons per year. Reserves are therefore sufficient for 56 years. It is on this basis that Limpopo, and Waterberg District in particular, is expected to become a considerably more important location for platinum production that what it has been in the past. If the constraints to expansion and growth can be addressed, then considerable investment in platinum mining in Limpopo (and in Waterberg District) can realistically be anticipated. The primary constraints are expected to be water, skills, logistics and electricity. The current level of business development is also insufficient to promote cluster development along the mining value chain. Attention is given to these aspects in the sections that follow the discussion on mineral resources. 2.1.2 COAL South Africa’s coal sector looks set to sprint ahead as energy crunches, at home and abroad, boost demand for the commodity, which is used widely in electricity generation4. The World Coal Institute ranks South Africa as the fifth largest global producer of coal at 240 million tons per year. The largest coal producer is the People’s Republic of China with 2000 million tons, followed by the USA (930 Mt), India (370 Mt) and Australia with 285 Mt. The breakdown of South African production is broadly that 110 Mt (40%) is used for electricity generation, 68 Mt (28%) are exported as steam coal and 41 Mt (17%) is used for the production of synthetic fuels). The remaining 16% has various industrial and metallurgical applications5. 3 Council for Geoscience, South Africa Financial Mail, 31 March 2006, p16 5 DME: South Africa’s Mineral Industry, 2004-05; p46 4 9 Major South African coal groups are about to invest billions of rands in new coal mines and in brownfields expansions of existing mines, to meet the predicted rising demand6. Kumba Resources, for example, has announced the expansion of Grootegeluk Coal Mine in the Waterberg District (Lephalale) in order to generate 0.7 Mt of semi-soft coking coal, which will be supplied to Mittal for steel production. The expansion should be completed in July 2006 at a capital cost of R320 million. According to the latest report by DME on the mineral industry in South Africa, Kumba Resources is also planning to open a new coal mine to supply steam coal to a new power station in the Waterberg7. This follows on the announcement by Eskom that a greenfield power station in the vicinity of the existing Matimba Power Station in the Waterberg is one of the options being considered to augment the national electricity supply8. According to the Annual Report of Kumba Resources for 2005, a pre-feasibility study for this purpose was completed in 2005. The project has now moved to the feasibility stage, which should be completed by June 2006. Construction is planned to commence in 2008 and production from the expanded facility could start in early 2010. The inferred coal resource in the Waterberg field is estimated at 76 billion tons, which is more than 40% of the national coal reserve. This is where the future of the South African coal industry lies, because the main coalfields that have sustained the country for decades are rapidly being depleted. A petrochemical production facility on the Waterberg Coalfield is also under consideration to utilize the chemical grade material. This project is being promoted by Trade and Investment Limpopo. Fourthly, it appears that the Waterberg Coalfield has significant coalbed methane resources. Anglo Coal has been exploring the gas field for several years, but has not published much information in this regard. The Limpopo Integrated Infrastructure Plan contains a short reference to this gas field and the information is reproduced below for the sake of convenience9. ‘Apart from the coal in the upper Waterberg coalfield, the Lephalale resource is rich in coalbed methane gas. Anglo Coal estimate the richness of the field at 1,0 TCF as compared to the Mosgas field of 0,3 TCF, making this particular natural gas-field one of the richest finds in South Africa. Furthermore Anglo Coal is currently investigating various applications for the gas that could include: Firing the power stations with a 50/50 percent coal and natural gas combination, making the power stations more efficient and environmentally friendly. 6 Financial Mail, 31 March 2006, p17 DME: South Africa’s Mineral Industry, 2004-05; p47 8 DME: South Africa’s Mineral Industry, 2004-05; p48 9 Limpopo Integrated Infrastructure Development Plan, 2003; p7 7 10 Using coalbed methane gas induction in various mining processes which will have the following strategic benefits for Limpopo: Coalbed methane gas induction for Kumba Resources in their magnetite product (Sandrivierspoort near Polokwane) to produce steel in a proposed steel smelter in Limpopo. Gas induction in Kumba Resources mining operations in Thabazimbi, effectively increasing mining activities in the Thabazimbi region by 80 years (without the gas, mining operations in Thabazimbi could expect to be terminated in 2015). Coalbed methane gas induction into the Soutpansberg coalfield, strategically unlocking the potentials of the coal field Possibility of a petro-chemical plant (Sasol equivalent) in Lephalale manufacturing various products, through downstream BTX integration. A conversation with Anglo Coal in this regard is necessary. Finally, the export of coal from the Waterberg Coalfield is a prospect for the future. This will depend on Spoornet providing rail logistics. Coal production and various applications from it, are likely to become a central feature of the Waterberg Mining Strategy. Leadership and strategic facilitation by Waterberg District Municipality are required to secure the opportunities that are emerging for the benefit of the District. The immediate action that is required is to establish consensus with Kumba Resources, Eskom, Anglo Coal, TIL and Spoornet regarding a joint agenda on coal for inclusion in the Waterberg Mining Strategy. Lephalale Municipality must be part of this consensus. 2.1.3 IRON ORE World iron ore production increased by 11 percent to reach 1 200 Mt in 2004 from 1 100 Mt in 2003. Brazil remained the largest producer at 270 Mt, with Australia in the second place at 241 (Mt). India and China achieved the largest year on year increases of 22 percent and 19 percent, respectively. South Africa increased its production by 3,6 percent10. The world exports increased for the third successive year reaching 634 Mt, up 8.5 percent as international iron ore trade reached a new record. Despite being the second biggest producer, Australia was the leading exporter at 211 Mt with the largest producer Brazil in second place at 201 Mt. The third most important exporter, India increased its exports for the fifth consecutive year to 63 Mt, followed by Canada and South Africa with 22,5 Mt and 25 Mt, respectively. Japan’s imports increased by 1,9 percent to 134,9 Mt, but China surpassed Japan as the number one importer (208 Mt) accounting for 32 10 This section draws heavily on the Iron Ore chapter in DME: South Africa’s Mineral Industry, 2004-05 11 percent of total world imports, 40 percent up on the previous year. Collectively, China, China, Japan and Republic of Korea accounted for 59 percent of total world imports, while the EU accounted for 26 percent. Iron ore contract prices for 2004 were settled in April 2004 at around 18 percent higher than in 2003. Negotiations for 2005 started in December with the first agreement being reached in February 2005 at an unprecedented 71.5 percent increase on 2004 between Brazil’s CRVD and Japan’s Nipon Steel. The average annual increase in the contract price of iron ore in 2005 was the highest ever with price levels approaching those of the 1970’s and 1980’s. Due to the persistently high prices being demanded by iron ore producers, a tendency has emerged among steel makers to look for captive mines for diversification as well as future security of supply. Growth in the iron ore industry is expected to continue in 2006 with China as the growth engine driving both the steel and iron ore business. China’s crude steel production in the first quarter of 2005 was already 106 Mt, up 31 percent from 81 Mt in 2004. World demand for iron ore could also reach new heights in 2006. China’s huge appetite for imported ore is likely to be the dominant factor determining future short- to medium- term growth trends in global trends in global iron ore sea borne trade. China has adopted a two pronged strategy to secure its needs for iron ore imports by Investing in joint ventures in iron ore production abroad Securing long term contracts at certain price levels. Given the vigour with which these measures are being pursued it appears the Chinese have no intention of slowing down their steel production and therefore iron ore consumption is bound to rise as the authorities attempt to move development to yet under developed regions of the country. Thabazimbi is the only operating iron ore mine in South Africa. It produced 2.5 million tons of ore in 2005, which is small in comparison to the Sishen Mine (also owned by Kumba), that produced almost 29 million tons in that year. Until the end of 2005 it was anticipated that Thabazimbi Iron Ore Mine would reach the end of its useful life during 2013. However, increased international iron ore demand, as well as increased demand from Mittal Steel, has prompted Kumba Resources to launch Project Phoenix. The objective of this project is to extend the useful life of the mine by twenty years. This will be achieved by exploiting the in-situ low grade banded ironstone formation, which, when combined with the high-grade hematite, provides an economically viable ore feed. The project is currently in the bankable feasibility phase. An investment decision could be made in 2006 with production of 2.5-3 Mt of ore being produced from 2009 onwards. 12 Vanadium deposits, associated with iron and titanium, are also found in the Waterberg District. The Molendraai Deposit belonged to the former Lebowa Minerals Trust and has subsequently been transferred to DME. Trade and Investment Limpopo has included the Molendraai deposit in their suite of proposals that was presented at the Limpopo Investors Conference in 2003. Almost 90% of global vanadium production (50,000 tons in 2004), is used in the form of ferrovanadium by steel makers, with most of the balance being consumed in titanium alloys, other non ferrous metals and as a catalyst in chemical applications. Growth in demand for vanadium has been higher than that of steel, but there have been few new applications in recent years. Most of the growth has been from an increase in the vanadium content in special steels. South Africa is the leading producer of vanadium in the world, although China has the largest vanadium reserves. An important short-term action for Waterberg District is to engage Kumba Resources in order to find areas where Project Phoenix (extending the life of Thabazimbi Iron Ore Mine) can be supported. Discussions with TIL and DME (and possibly Kumba Resources) to fast track the development of the Molendraai Vanadium deposit, are also imperative. 2.1.4 OTHER Although Waterberg District has more than 23 mineral occurrences, the three commodities mentioned above, platinum, coal and iron ore, hold the most potential for development. The five other minerals that will be discussed for the purpose of the mining strategy are diamonds, dimension stone, chrome, tin, and fluorite. 2.1.4.1 Diamonds The dominant position that diamonds hold in current prospecting activity in Waterberg District, (see Annexure One) imply that this commodity also deserves consideration. World production of rough diamonds was estimated at 150 million carats (Mct) in 2004, which was 3% higher than the previous year. However, the value increased by 14% to US$10.4 billion due to a rise in prices11. Russia is the largest world producer of diamonds by volume, but Botswana holds first position in terms of value. South Africa produced 14.3 million carats in 2004, which was approximately 10% of world production. The value of this production is estimated at US$1.2 billion. Within South Africa, Venetia (Vhembe District of Limpopo) is the largest diamond mine by far, followed by Finsch and Kimberley. 11 This section draws heavily on the Diamond chapter in DME: South Africa’s Mineral Industry, 2004-05 13 The Oaks is the only diamond mine in Waterberg District, located 20 km from Swartwater. It produces approximately 70,000 carats a year, which is 0.5% of national production. The mine was established in 1998 and employs 68 people12. Although this is very small by any standards, the market situation for diamonds appears very attractive going forward. This, together with the considerable prospecting activity for diamonds in Waterberg District, suggests that a conversation regarding the Waterberg Mining Strategy with the De Beers Office in Limpopo would be appropriate. 2.1.4.2 Dimension Stone Dimension stone is a term applied to naturally- occurring rock that may be cut, shaped or selected for use in blocks, slabs, sheets or other construction units of specific shapes or sizes. It is commonly used for the cladding of buildings, curbing, paving, flagging and revetting for its architectural or engineering properties; also in memorials, particularly tombstones. The construction sector accounts for over 80 percent of consumption. South African dimension stone production consists mainly of granite. Grey and black norites, termed “black granite”, all from the Bushveld Igneous Complex (B.I.C), form the backbone of the South African dimension stone industry. Red (B.I.C) granites and greenish metamorphic rock from the Namaqualand area are also well established on international markets. Total world raw quarry production is estimated at 75 million tons, with processing waste of 30 million tons, yielding net production of approximately 45 million tons. China leads with estimated production of 14 million tons (raw), followed by Italy and India with estimated production of 7,8 million tons and 7,5 million tons respectively. Production in Iran is estimated at 7,3 million tons. China and India have experienced increased production while production in Italy is declining slowly. South Africa sold 575 kt of dimension stone in 2004, valued at R502 million, a 13 percent increase in mass compared to 2003. Local sales amounted to 194 kt, an increase of 60 percent compared to 2003. Natural stone is gaining popularity in the local market, with the most growth in domestic and monument applications. South Africa’s exports amount to 380 kt, 29 percent directed to Italy followed by China and Belgium, which account for 15 and 13 percent respectively. At current pricing levels, Rustenburg Black is slightly oversupplied hence putting pressure on pricing and at current exchange rates may lead to closure of quarries, particularly small operations without the financial backing to survive through the difficult times. Olive Green supply/ demands is balanced at current levels. The market for green coloured materials is 12 Information obtained from the company website: www.debeersgroup.com 14 probably in decline overall. The market for African Red is substantially less than it was several years ago due to changes in fashion trends as well as competition from other red materials from India and China, but there are indicators of a recovery. While the stone industry is growing internationally, current exchange rates make South African material particularly uncompetitive. Exclusive materials will still be able to find markets, but these may be at reduced volumes as customers switch to alternatives due to pricing. Kelgran, now JVK, and Bestaf Granite (a Taiwanese company), Marlin, Africa Red Granite Quarries and Red Stone Mining have dimension stone quarries in the Waterberg District. They should be made aware of the mining development strategy process in the district and should be given an opportunity to make comments and recommendations. 2.1.4.3 Chrome World chrome reserves are concentrated in Southern Africa with 84% being associated with the Bushveld Complex (South Africa and Zimbabwe). Global production increased by 15% to 17 million tons in 200413 in response to strong ferrochrome demand. South Africa contributed almost 8 million tons of this. The value of sales increased by a substantial 46% to R1.6 billion, which is indicative of strong price movements in favour of producers. Additional production capacity towards the end of 2006 is expected to place a cap on further price increases. Chrome production in Waterberg District is confined to Zwartkop and to chromite tailings accumulated from platinum mining. Speak with Nick Baglow (Council for Geoscience) and with Angloplat (on the chromite tailings) to form a better understanding of development opportunities for chrome in Waterberg District. 2.1.4.4 Tin The tailings dumps from all the abandoned mines in the Waterberg District hold considerable and immediate development potential. It is expected that with hydraulic recovery methods, mining dumps containing as little as 0.2% tin (Sn) will be economic, and given the large volume of dumps available this would represent a significant potential resource. Obtain further information on current trends in the tin market – Marcel Dippenaar. 13 DME: South Africa’s Mineral Industry, 2004-05; p102 15 2.1.4.5 Fluorite Fluorspar is the commercial name for the mineral fluorite (calcium fluorite CaF2), which is graded for acid, metallurgical and ceramic applications. Roughly half of world fluorite output is used for the production of hydrofluoric acid, which is a key ingredient in the production of a wide range of chemicals. The metallurgical grade material is used as a flux in steel making to reduce slag viscosity, reduce the melting point and reduce impurities from steel. Ceramic grade fluorspar is used in the glass and ceramic industries. China dominates the global fluorspar industry with more than half of global production. Mexico and South Africa are in second and third places respectively. Prices for acid grade fluorspar increased marginally in 2004 after substantial increases in 2003. This follows from a reduction in Chinese exports in order to meet their growing domestic demand. Drill down into some opportunities in the Waterberg District – Marcel Dippenaar. 2.2 Water Having discussed the opportunities for mining development above, some of the constraints to mining development, including water, are discussed below. The Waterberg District is unfortunately stressed from a water supply point of view, which is a constraint on mining development. The Department of Water Affairs and Forestry has consequently embarked on two major initiatives to augment the water supply in the district. These two initiatives are the Olifants River Water Resource Development Project and the Mokolo River Water Augmentation Project, which are both briefly discussed below. 2.2.1 OLIFANTS RIVER WATER RESOURCE DEVELOPMENT PROJECT This project entails the raising of Flag Boshielo Dam wall by 5 meters and construction of a new dam (De Hoop) in the Steelpoort River). A pipeline will be constructed in 2008 to transfer raw water from Flag Boshielo to Mokopane. This is expected to be completed in 2009, with a second pipeline in 2025. Mogalakwena Municipality (where the Platreef occurs) is expected to be a primary beneficiary of the Flag Boshielo water transfer, but this transfer will be insufficient to remove the water deficit. Total water requirements for the municipality in 2005 were estimated at 21 million cubic meters of which the bulk (19 million cubic meters) was for agriculture. Mining used a mere 1.5 million cubic meters and household use was 0.2 million. 16 The total water demand in Mogalakwena is expected to increase to 44 million cubic meters by 2025. Agricultural demand is expected to remain at 19 million cubic meters, but mining demand is projected to rise to 14 mcm and household (urban and rural) demand to 10 million cubic meters by then. Although Mokopane will have a water deficit from 2007 onwards, this deficit is expected to grow considerably to almost 18 million cubic meters per year from 2005. This deficit is after provision has been made for the effluent from Polokwane. A detailed water services planning study is therefore currently underway in Mokopane and the results are expected in 2007. It is important that the mining development strategy and the water services planning study should inform each other. 2.2.2 MOKOLO RIVER WATER AUGMENTATION PROJECT The current allocation of the available 28.6 million cubic meters of water per year from Mokolo Dam is as follows: Agriculture: 10.4 Grootegeluk Mine: 9.9 Matimba Power Station: 7.3 Lephalale Municipality: 1.0 Future needs are likely to include the potential for expanded coal mining, new electricity generation and the possible development of a petrochemical industry. Water resources in this part of the District can be augmented by raising the Mokolo Dam and by transferring water from the Crocodile River. A return flow of 45 million cubic meters per annum has already been reserved for this purpose. Planning studies are currently underway to identify the most suitable option and implementation plan. These are expected to be completed in 2006. The preliminary programme is for facility designs to be completed in 2007 and for construction to commence in April 2008. Commissioning is scheduled for July 2010. It is imperative, once again, that the mining development strategy and the water services planning study should inform each other. 2.3 Skills 2.3.1 LABOUR MARKET TRENDS In a cover story on the skills collapse in South Africa, the Financial Mail 14 pointed out that the traditional skills crisis at the top end of the market has shifted to include a serious depletion of artisans. The Financial Mail contends that this is due simply to a collapse of training. The apprentice intake is 14 20 June 2003 17 dwindling each year and the profile of qualified artisans is ageing. This is leading to a skills crunch that will force employers to compete for skills and that could threaten the country’s ability to deliver on large capital investment project plans. The specific trades referred to include electricians, specialist welders, refrigeration mechanics, tool-makers, fitters and turners and millwrights. Among these, the national shortage of tool-makers is desperate. The Financial Mail argues that the shrinking number of artisans, which was heightened by the switch to new training systems in the country, is part of a longer-term trend emerging from the restructuring of parastatals. Since the 1920’s parastatals such as Iscor, Eskom and Telkom trained many more artisans than they needed because skilled labour was poached by the private sector. With the drive to corporatise and become more competitive that began in the 1980’s, the parastatals scaled down on training. Rationalisation in the gold mining industry has also contributed to declining artisan numbers. The shortage of skills is confirmed in the Limpopo HRD strategy. A draft report on the first phase of the strategy indicates that the priority skills training needs in the local mining industry are in the areas of health and safety, mechanical and electrical engineering, and also in metallurgy. Mining is a priority sector for the Department of Labour as reflected in their Provincial Skills Plan for Limpopo. The specific training priorities that were identified for this sector are indicated below: Mine engineering Civil engineering Geology Surveying Quantity Surveying Technical Operators Operations Management Process Management. Since the Skills Development Act came into effect in 1998, incentives to take on trainees have increased. These incentives are twofold: The employer gets an annual grant of approximately R20,000 for each learner; The employer can deduct twice the trainee’s wages from taxable income. Learnerships are also more flexible and more focused on business skills than apprenticeships. 18 2.3.2 SKILLS AVAILABILITY IN WATERBERG DISTRICT The skills profile in Waterberg District for persons between the ages of 18 and 45 is presented in the table below. This information was extracted from the results of Census 2001. The specific age category was selected because it represents the people who are most likely to be recruited when jobs become available. 19 Table 2.3.2: Highest Level of Education Attained for Selected Age Groups in Waterberg District, 2001 Education Level No schooling Grade 1/sub A (completed or in process) Grade 2/sub B Grade 3/standard 1 Grade 4/standard 2 Grade 5/standard 3 Grade 6/standard 4 Grade 7/standard 5 Grade 8/standard 6/form 1 Grade 9/standard 7/form 2 Grade 10/standard 8/form 3/NTC I Grade 11/standard 9/form 4/NTC II Grade 12/standard 10/form 5/matric./NTC III Certificate with less than grade 12 Diploma with less than grade 12 Certificate with grade 12 Diploma with grade 12 Bachelor's degree Bachelor's degree and diploma Honour's degree Higher degree (master's or doctorate) Total 20-24 5191 251 427 846 1399 1782 2331 4022 4672 5536 7093 8698 10619 149 79 876 685 145 37 33 6 54880 25-29 6357 351 560 1039 1570 1767 2353 3505 3515 3954 4752 5868 10866 185 96 932 1674 365 173 83 57 50023 30-34 6229 345 595 1094 1519 1806 2185 3073 2655 2652 3566 3304 8091 85 95 719 2040 436 308 146 99 41041 35-39 8114 491 761 1486 1736 2028 2412 3478 2403 2210 2807 1746 5462 86 98 490 1804 432 282 139 96 38563 40-44 8447 449 870 1297 1790 1815 2106 2559 2198 1333 2165 866 3461 76 91 390 1326 364 258 108 91 32062 Total 34337 1886 3213 5763 8015 9199 11387 16638 15443 15686 20384 20483 38498 582 459 3408 7530 1742 1058 509 349 216569 Source: Statistics South Africa, Census 2001 20 Almost 16% of the adults in this age group had no education in 2001. The incidence becomes progressively higher along the age cohorts. The importance of effective adult basic education programmes cannot be over emphasised. More than 74% do not have a matric certificate, which is rapidly becoming the minimum entry level for the mining industry. Almost 14,600 persons, (7% of the selected age groups) have post-matric qualifications. 2.3.3 TRAINING FOR THE MINING SECTOR IN WDM There are two further education and training (FET) colleges in Waterberg District, located in Mokopane and Lephalale. Both of these colleges have engineering departments, where electrical, mechanical and metal science subjects are offered. Lephalale FET College offers the theory for these subjects from N1 to N6 level and the students (approximately 600 per year) receive practical training at the workshops of Kumba Resources and Eskom that are located adjacent to the college. Waterberg FET College offers the same courses, but to N3 level only. They have approximately 210 engineering students per year. Apart from the FET colleges, Anglo Platinum operates a college in Mokopane where employees are trained as part of company policy to ensure that all staff has a minimum qualification of matric. The subjects are similar to the engineering courses at the FET colleges, but include plant operation, water treatment and surface mining. Training courses range from ABET level 3 to N3. As part of company policy, an additional 20 students are selected from the communities surrounding mining operations and they are given the same training at no cost. The total number of students is 74. Consideration should be given to the establishment of symbiotic relationships between employers and training institutions with regard to learnership training. (This is presumably the purpose of the proposed Employment Skills Development Agencies). A considerable increase in the number of persons trained is also needed at all levels, starting with adult basic education and training. The Department of Labour uses a wide range of institutions to implement the National Skills Development Strategy throughout the country, including districts such as Waterberg. These institutions range from labour centers to sector education and training authorities. Implementation is directed by workplace skills plans, sector skills plans and provincial skills plans. There are also special skills funding windows. The Mining Qualifications Authority, which is the sector education and training authority for the mining industry, has a number of national programmes, which are listed below: Small scale miner technical training in 9 provinces with a budget of R1 million, SMME training support, also with a budget of R1 million, Promotion of women in mining in 9 provinces, ABET grants of R37 million per year, Apprenticeships and blasting certificates with a budget of R12.5 million, FET College support with a budget of R1.4 million, and Bursaries for undergraduate students (R32.5 million for 2006). These are national programmes and budgets. It is therefore incumbent upon Waterberg District Municipality to maximize its share of these resources. An essential short-term action is to form a workgroup comprising WDM, the Department of Labour in Limpopo and the Mining Qualifications Authority to map out a joint agenda for mining skills development in the Waterberg District. 2.4 Logistics 2.4.1 ROADS Waterberg District Municipality has 8,500 km of roads, but only 2,533 km (30%) is tarred. With specific reference to mining development, the Roads Agency for Limpopo (RAL) reported during March 2006 that: The Mokopane and the Bakenberg roads, which link with the N11, have been transferred to the National Roads Agency. The road from Mokopane to Lephalale is being transferred to the National Roads Agency to support mining development in the Lephalale area. The road from Gilliad to Polokwane is also being transferred to the National Roads Agency. The reason for the transfer to the National Roads Agency is that the heavy mining traffic and loads will make these roads too expensive for RAL to maintain. The estimated cost to surface all roads in mining development areas is R15 billion, which is considerably beyond the RAL budget. The development priorities for RAL in the next five years are indicated below: In Thabazimbi Municipality the road from Dwaalboom to Northam, which leads to Brits, is under maintenance in order to support the new cement production activities at Dwaalboom. In Mogalakwena the Kloofpas Bridge is being repaired, the road from Bakenberg to the N11 will be rebuilt and the road from Marken to Gilliad will be upgraded. In Bela Bela Municipality the road to Koedoeskop is being improved. 22 2.4.2 RAIL TRANSPORT The provision of rail infrastructure is the key to unlock the coal mining potential in the upper Waterberg / Lephalale area15. Without adequate rail infrastructure, neither Kumba Resources nor Anglo Coal will be in a position to invest in coal mining operations in the Lephalale area (total estimated investment in the Lephalale region R70 billion over ten years leading up to 2015). This requires a new rail link from Lephalale – Polokwane – Burgersfort – Middelburg - Export harbour. The export harbour will initially be a tie-in to the existing CoalLink to Richardsbay and could be expanded to Maputo for export. The estimated cost for the supply of the new 26 ton per axle rail line will be R10 million / kilometre. An estimated 450km rail line will cost in the order of R4,5 billion. This rail line could also assist the Platinum mines and reduce pressure on the R37 road. First estimates from Kumba Resources indicate estimated coal exports via the rail line to Richardsbay of 18 million tons per annum. It is further expected that future coal production from Botswana and Zambia will be routed through Lephalale (Ellisras) on the proposed new line from Lephalale to Middelburg to Richardsbay or Maputo. First indications from Anglo Coal are that the 56 million ton per year capacity of existing CoalLink will be taken up by the Lephalale mining operations as / when Witbank becomes depleted. 2.5 Electricity Eskom stated that they are in a position to meet the demand from private sector investment in terms of transmission and distribution. The only area that requires additional attention is the significant growth in Lephalale due to the increased mining activity16. In order for Lephalale to contribute towards the national electricity grid, Matimba power station and a new greenfield power station must be constructed. The coal sector is dependant on power stations to make their business plans work e.g. for every 8 million tons of coal exported, the mine must deliver 4 million ton per annum to a power station. The power station must be in close proximity to the coal mine to avoid the transport premium (e.g. Grootegeluk mines at R 50 per ton with an added R 100 per ton transport premium to Richardsbay). 15 16 Limpopo Integrated Infrastructure Development Plan, 2003; p14 Limpopo Integrated Infrastructure Development Plan, 2003; p16 23 2.6 Business Development The South African Mining Preferential Procurement Forum (SAPPF) represents all the major companies and seven provincial governments in the country and it performs the following functions: Provides a methodology for the accreditation of rating agencies, Provides certified empowerment information on HDSA suppliers, Creates regional buyer forums with LED objectives, Facilitates interaction between relevant institutions, and Compiles supplier and provincial reports. Limpopo Government is a subscriber to SAPPF for the purpose of measuring the contribution from mining companies to local economic development and to promote procurement by mines from historically disadvantaged South African (HDSA) and Black Economic Empowerment (BEE) companies. However, the current database is populated with Sekhukhune mines only and contains no information on mines in the Waterberg. The current impression that is being given by the SAPPF reports is that existing suppliers are transforming to obtain BEE status, with no new HDSA of BEE companies emerging in the supply chain. Integration between procurement managers at mines and provincial government business support agencies is limited. This represents a challenge to the WDM Mining Strategy, which should extend the integration to incorporate the social and labour plans of the mines. At a national level, procurement by participating mines amounted to R8 billion, of which 16% was procured from HDSA companies. Procurement within Limpopo was R400 million, of which only R20,000 or 0.05% is obtained from HDSA companies. In the Northern Cape a Provincial Mining Procurement Initiative was formed to facilitate capacity development within a local mining supplier industry. Their focus has moved beyond routine products and services, to leverage products and services, which have a low complexity but high impact. Total procurement from mines in the Northern Cape in 2005 was R1.7 billion, of which R678 million (38%) was procured from within the province and R170 million (10%) was spent at HDSA companies in the province. There are 1,543 mining suppliers in the Northern Cape, of which 1,354 are SMEs (less than 200 employees) and 136 are HDSA accredited. Limpopo, or Waterberg District, could emulate the successful experience of the Northern Cape and establish it own procurement initiative. This will be consistent with the spirit of the Mineral Resources Development Act. The 24 action plan for a Waterberg District Procurement Initiative broadly summarised below: 2.6.1 Compile procurement data in terms of purchases and suppliers for the Waterberg District, 2.6.2 Convert the ownership and management status of suppliers to codes that can be recognised in terms of the charter, 2.6.3 Communicate compliance to all suppliers, 2.6.4 Integrate Social and Labour plans of mines with the efforts of the local DME office and provincial government to promote emerging business development in the mining sector, 2.6.5 Re-measure and report progress with regard to BEE procurement in terms of DTI codes for all suppliers, not only for ownership and rand value, but also for jobs created and sustained. 2.7 Land-Use Management During the stakeholder workshop on the mining development strategy in March 2006, the need was expressed for local government facilitation with regard to interactions between mines and local communities (including traditional authorities). Leadership from government is specifically required in terms of town planning, housing and recreational facilities development within settlements that are located within the proximity of mines. This is essential in an attempt to retain scarce skills in rural areas. Anglo Platinum has recently appointed a Town and Regional Planning firm to assist with land-use planning in the Mapela area, which is in the vicinity of the Potgietersrus Platinum Mine. It is important from a WDM Mining Development Strategy point of view that the results of work should be incorporated into the District and the Mokopane Spatial Development Plans. This spatial development intervention process should ideally be repeated in all the areas where mines occur in close proximity to communities. 2.8 Institutions A brief description of the many institutions that could influence the successful outcome of the Waterberg Mining Strategy is provided below. Part of the mining strategy formulation process will be to interact with all these institutions, some individually and some collectively. During the stakeholder workshop on the mining strategy that was held in Waterberg in March 2006, it was agreed that a Waterberg District Mining Cluster Working Group will be established from stakeholders to review the mining strategy formulation process and to pursue the issues that were raised in the presentations during 25 the workshop. The minutes of the workshop and the attendance register are attached as Annexure Three. This approach is consistent with the recommendations of the Limpopo Growth and Development Strategy and with the Limpopo Mining Summit, specifically with regard to competitive cluster promotion. It is also consistent with the successful strategic mining sector development approach that was adopted by South Australia. The Waterberg District Mining Cluster Working Group will present its findings to a broader stakeholder forum for the mining sector that will include the delegates at the workshop, as well as the institutions that were recommended for inclusion. 2.8.1 Department of Minerals and Energy The purpose of this department is to regulate and promote the minerals and energy sectors in the country for the benefit of all citizens. It has the authority to grant exploration and mining licenses and is therefore a key stakeholder in the context of the Waterberg Mining Development Strategy. Regional Manager- Mineral Development (015) 287 4700 2.8.2 Department of Water Affairs and Forestry This Department is responsible for water services planning and for water resource development. It is a central stakeholder in terms of the Waterberg Mining Development Strategy, because mining development is only possible if water resources are further augmented. Chief Engineer- Options analysis (012) 336 8613 2.8.3 Department of Labour: Limpopo Office The Department of Labour is the custodian of the national skills development strategy and the host department for the sector education and training authorities. It has critical role to play in promoting essential skills in the mining sector through its provincial office in Limpopo and through the Mining Qualifications Authority. Manager- ESDS (015) 290 1656 2.8.4 South African Preferential Mining Procurement Forum 26 The South African Mining Preferential Procurement Forum (SAPPF) represents all the major companies and seven provincial governments in the country. It provides certified empowerment information on HDSA suppliers and creates regional buyer forums with LED objectives. CEO (012) 807 3141 2.8.4 Eskom Eskom owns and operates the Matimba Power Station in Lephalale, which is the largest customer of the Grootegeluk Coal Mine. Any significant expansion at Grootegeluk, will depend on expansion of the power station. Manager- Municipal Customer Executive for WDM (015) 299 0523 2.8.5 Spoornet Spoornet is central to unlocking the long-term opportunity for coal exports from Grootegeluk through rail transport. 2.8.6 Office of the Premier: Limpopo The Office of the Premier is an important stakeholder in the WDM mining strategy because it is the custodian of the Provincial Growth and Development Strategy, which promotes mining cluster development as a basis for job creation and economic growth. Manager- Planning & Coordination (015) 287 6047 2.8.7 Department of Economic Development: Limpopo The mission of this department is to stimulate and maintain an enabling environment conducive to sustainable economic growth, financial management, social justice and a decent quality of life for all. It is assisting the Office of the Premier with the implementation of the clusters that were approved in the Provincial Growth and Development Strategy, which includes the mining cluster. The responsible official is the Secretary to the Economic Cluster. This Department also has a directorate for targeted industries, which includes mining. The responsible person is the Deputy Manager: Mining Sector.(015) 293 8300 2.8.8 Department of Local Government and Housing: Limpopo 27 The mission of this department is to establish, support and monitor sustainable development and local governance through: Co-ordinated and integrated development planning in all spheres of government, Co-ordinated and targeted capacity building, Creation of an environment in which housing development takes place, and Co-ordination of disaster management. The role of the Department is specifically relevant in terms of the planning of settlements in rural areas. HOD (015) 295 5400 2.8.9 Mintek Mintek is the national provider of minerals processing and metallurgical engineering products and services. It is currently managing a special programme on platinum beneficiation, which is the principal commodity in the Waterberg mining sector. 2.8.9 Council for Geoscience The Council for Geoscience conducts research on the exploration phase of the mining value chain. Unit Manager (015) 295 3471 2.8.10Council for Scientific and Industrial Research (CSIR) The CSIR does technology research and product development in the fields of mining extraction and metal applications. Competency Area Manager (011) 258 0213 2.8.11Roads Agency Limpopo (RAL) RAL has the responsibility to develop, manage and maintain the provincial roads in Limpopo and in the Waterberg District. The quality of road access is an important consideration in the cost-competitiveness of mining operations and new mining development. General Manager- Planning and design (015) 297 6433 28 2.8.12Anglo Coal Anglo Coal is the largest company that is currently doing significant coal bed methane gas exploration in the Waterberg District. 2.8.13Anglo Platinum Anglo Platinum owns and operates three of the four existing platinum mines in Waterberg District. This is by far the most valuable mining activity in the district and accounts for 67% of total mineral sales from the District. 2.8.14Northam Platinum Northam Platinum owns and operates the fourth existing platinum mine in Waterberg District. 2.8.15Kumba Resources Kumba Resources owns and operates the only coal and the only iron ore mine in Waterberg District. These are currently the second and third most valuable mining activities in the district. Mine Manager (014) 763 9000 2.8.16De Beers Limpopo De Beers Group owns and operates the only diamond mine in Waterberg District. Mine overseer/ safety Manager (014) 767 3009 2.8.18Waterberg District Municipality The mission of WDM is to use an inclusive and participatory process to establish the needs of its people and to render effective, efficient and sustainable services so as to ensure a better life for all. It is the primary facilitator of the Waterberg Mining Development Strategy. Manager- Planning & Economic Development (014) 717 1344 2.8.19Mogalakwena Municipality Mogalakwena Municipality is responsible for service delivery and land-use management in the rural Mapela area, which has a high current level of mining activity and significant potential for future mining development. 29 Divisional Head- LED & Tourism (015) 491 9632 2.8.20Mogalakwena Joint Development Forum The Mogalakwena Joint Development Forum (“JDF”) was established during 2003, between the Mogalakwena Local Municipality, the Waterberg District Municipality and the Mogalakwena Economic Sector Forum, which comprises of active mining companies in the Central Limb mining area, as well as local organised business represented through South African Chamber of Business (SACOB). The mining companies, Anglo Platinum, Platreef Resources and Anooraq Resources collectively formed a representative body known as the Mogalakwena Economic Sector Forum. The purpose of the JDF was to identify and address mutual needs and opportunities in the area with specific reference to Water and Sanitation, Spatial Development & Transport Planning. The following achievements were reached: September – December 2003: Identification of focus areas: Water & Sanitation, Spatial Development & GIS and Housing January 2004 – December 2004: Appointment of specialist consultants; Water and Sanitation: Establishment of mining and domestic water demands and identification of existing and potential water sources and establishment of the Olifants River Joint Water Forum; Spatial Development and GIS: Devising of a spatial and GIS strategy; January 2005 – December 2005: Spatial Development and GIS: The compilation of a Development Prioritization Plan and Movement Strategy/Plan & GIS-Support and updating of the Mogalakwena Municipality’s GIS-system; Transport: Status Quo Report on transport issues within the study area; a Transport Specific Strategy and a detailed traffic analysis to evaluate the road network system. The above projects are ongoing in 2006 with specific emphasis on the impact of the ORWRD Project on the domestic and mining water supply. 30 2.8.21Thabazimbi Municipality Thabazimbi Municipality is responsible for service delivery and land-use management in the Thabazimbi and Northam town areas, which have high current levels of mining activity and significant potential for future mining development. IDP Manager 082 467 6740 2.8.20Lephalale Development Company The Lephalale Development Company is a Section 21 Company that: Provides information to potential investors, Promotes the local supply of goods and services, and Manages social and infrastructure projects. The CEO of this company could be invited to represent Lephalale Municipality at the next stakeholder consultation meeting for the WDM Mining Development Strategy. 2.8.21 Trade and Investment Limpopo (TIL) The mission of Trade and Investment Limpopo is to promote the province as a preferred trade and investment location by marketing its competitive advantages. A memorandum of understanding has been signed with Mintek to promote small scale mining. Training in jewellery manufacturing is currently being conducted in Thabazimbi. The contact person is the Sector Manager: Mining. Sector Manager (015) 295 5171 2.8.22Limpopo Economic Development Enterprise (Limdev) The mission of Limdev is to establish and advance a sustainable small and medium enterprise sector in Limpopo through the provision and facilitation of business and investment opportunities. One of the strategies in this regard is to improve access to finance. It is therefore an important stakeholder in providing assistance to Waterberg-based emerging enterprises who seek to engage in the mining supply chain. Executive Manager- Projects (015) 633 4700 2.8.23Limpopo Business Support Agency (LIBSA) 31 LIBSA encourages and assists potential enterprises to enter the economic sectors in Limpopo. The mining sector has been given priority in terms of the Limpopo Growth and Development Strategy. The CEO can be contacted in Polokwane at 015-2953581. The Waterberg District Office is located in Lephalale at 014-7632834. Business Development Officer (015) 297 6632 32 SCENARIO FORMULATION 3.1 Business as Usual The business-as-usual scenario that is formulated below is based on the production and employment trends of the past five years and on announcements that have been made regarding anticipated new developments. Table 3.1.1 Estimated Value of Sales R’million Company 2005 2004 2003 2002 2001 Amandelbult 4,838 4,493 4,182 5,954 5,473 Union 2,828 2,329 2,030 2,386 2,327 PPRust 2,120 1,980 1,783 1,893 2,559 Northam 2,100 1,950 1,750 1,900 2,550 Grootegeluk 1,940 1,650 1,600 1,550 1,500 Thabazimbi 600 382 350 350 350 Other 200 190 180 170 160 Total 14,626 12,974 11,875 14,203 14,919 Source: Estimates by Glen Steyn from Company Annual Reports, 2005 It is evident from the table above that the value of sales is very sensitive to commodity prices and the rand exchange rate. The cyclical nature of the trend in sales from 2001 to 2005 correlates perfectly with the weak rand in 2001, the drop in commodity prices in 2003 and the strong recovery in prices towards the end of 2004. This trend is expected to continue, but the vulnerability remains. Although the country is currently in a commodity super cycle, the fundamentals can change again with a resultant drop in sales value. Waterberg as a District benefits from the commodity boom in terms of job creation and procurement from local suppliers. Table 3.1.2: Employment trends on Anglo Platinum Mines in WDM Company 2005 2004 2003 2002 Amandelbult 9761 9637 9595 9607 Union 7619 7261 6870 6240 PPRust 1119 1132 1124 1112 Total 18,499 18,030 17,589 16,959 Source: Anglo Platinum Annual Report, 2005 2001 9890 6342 1095 17,327 Employment increased by 1,540 persons or 9% from the lowest point in 2002 to the average for 2005. The trend is similar to that of sales value, but not as strong. Sales value increased by 23% from its lowest point in 2003 to the high point in 2005. This correlation is likely to continue, with further increases in sales and employment as long as the current commodity cycle is sustained. 33 Looking forward in the business-as-usual scenario is the announcement by Anglo Platinum that the PPRust North Replacement Pit is being established in 2006. It will mill 385,000 tons of material per month to replace the 200,000 ounces of platinum that is currently being extracted from the Zwartfontein South pit. Board approval is currently being recommended to further expand production to an additional 230,000 ounces of platinum at a capital cost of R4 billion. This is likely to create approximately 1,300 new jobs. During 2006 the expansion of the Grootegeluk processing plant will also be completed at a cost of R320 million, with perhaps a 100 new jobs being created. Further forward is the possibility of Matimba Power Station being expanded from the current six to nine generating units, and the impact that this will have on the expansion of Grootegeluk Coal Mine. If this happens, then 800 new job opportunities could be created on the mine from 2008. The business-as-usual job creation scenario is therefore projected as follows: Table 3.1.3: Business-as-usual Job Creation Scenario for Mining in WDM 2006 2007 2008 2009 2010 Carry over 18,500 19,400 20,200 20,900 21,300 Platinum Growth 300 300 Grootegeluk 100 400 400 PP Rust 500 500 300 Total 19,400 20,200 20,900 21,300 21,300 The total number of new jobs from January 2006 to December 2010 under the business-as-usual scenario is 2,800, or approximately 560 per year. In terms of the Provincial Growth and Development Strategy, the expectation is that 6,000 new jobs will be created in Waterberg District each year in order to halve unemployment by 2015. Mining is an area of primary competitive advantage in the Waterberg District and its share in achieving the job creation target should therefore be raised. The business-as-usual scenario is therefore unacceptable from this point of view. The business-as-usual scenario is also unacceptable from the business development point of view. It was indicated in section 2.6 above that procurement within Limpopo was R400 million, of which only R20,000 or 0.05% is obtained from HDSA companies. The data pertains to Sekhukhune District and no information is available for Waterberg. A deliberate intervention is required to raise both the levels of job creation and the level of local business development. This will be discussed in the best case scenario below. 34 3.2 Best Case The best-case scenario assumes the following mining developments in addition to the anticipated events that have already been captured in the business-as-usual scenario: 3.2.1 One new platinum mine on the Platreef and expansions at all other platinum mines in the Waterberg District contributing to the production of an additional 500,000 ounces of platinum from 2007. This will contribute 4,000 new jobs. 3.2.2 An additional three generating units at Matimba Power Station, necessitating further expansion at Grootegeluk Coal Mine and creating 800 more jobs from 2010. It is assumed that Grootegeluk will stockpile material from 2007 in anticipation of the generating requirements. 3.2.3 Approval of the coal liquefaction project, necessitating the separation of chemical grade coal at Grootegeluk, which will create 100 new jobs in 2007. 3.2.4 Gas field development in Waterberg District to supply the coal liquefaction plant with hydrogen, resulting in 400 jobs being created from 2007. 3.2.5 Development of a ferro-vanadium mine (Molendraai) in 2008, with 400 new jobs being created. 3.2.6 A small diamond mine being developed in 2008 on the back of the current exploration activity and another in 2009, creating 100 jobs each. 3.2.7 Recovery of tin residues from the dumps of abandoned mines from 2007 onwards, creating 200 new jobs. 3.2.8 Expansion and consolidation of the dimension stone industry to supply the growing property market and creating 50 new jobs a year from 2006. 3.2.9 Beyond 2010 there is the potential for coal exports from Grootegeluk, provided that rail logistics are developed. This job creation scenario is illustrated in the table below. Under this scenario the total number of new jobs created until December 2010 is 7,250, or approximately 1,450 per year. This represents 24% of the job creation needs of the district. The best case scenario also assumes that local business development can be considerably improved and that 30% of procurement can be done from 35 suppliers that are based in the Waterberg District by 2010. create another 4,350 jobs over this period of time17. Table 3.1.4: Best Job Creation Scenario for Mining in WDM 2006 2007 2008 2009 Carry over (BAU) 19,400 19,450 21,000 22,750 Platinum 1,000 1,000 1,000 Coal for Matimba3 100 100 200 Coal: Liquefaction 100 Gas field 200 200 Ferrovanadium 200 200 Diamonds 100 100 Tin recovery 100 100 Dimension stone 50 50 50 50 Total 19,450 21,000 22,750 24,300 3.3 This should 2010 24,300 1,000 400 50 25,750 Intermediate Case The intermediate case is better than the business-as-usual scenario, but does not achieve all the developments that are anticipated in the best case scenario. For the purpose of this discussion document it could be assumed that the intermediate case could be midway between the two scenarios above. This would imply a total of 1,005 new jobs being created per year and 15% of mining procurement from Black economic empowered suppliers that are based in Waterberg District. 17 Estimate based on the employment multiplier for the mining industry in Limpopo that was calculated as part of the Limpopo Input-Output model in 2002. 36 4. MINING DEVELOPMENT STRATEGY FORMULATION 4.1 Goals and Objectives The following formulation is proposed as the goal of the Waterberg District Mining Development Strategy. WDM will provide leadership and interventions to increase the contribution from the mining sector to job creation and economic growth in the District by: Creating a conducive environment for mining expansions and new mine developments, specifically by facilitating the removal of constraints to such developments, Promoting the capacity of Black economic empowered companies from within Waterberg District to supply the procurement needs of mines according to the required quality standards, Augmenting the capacity of local municipalities, traditional leaders and communities to respond to and consolidate the benefits of mining developments within a cluster context. Each of the bullet points will become an objective and will be expanded in the implementation plan that will be compiled as part of phase five of the mining development strategy formulation process. 4.2 Incentives At this stage it is envisaged that the main incentive for mining development in Waterberg District will be assistance from the public sector towards infrastructure provision, skills development and contributions towards landuse management in rural areas. This section will be expanded after discussions have been held with stakeholders. 4.3 Business and Community Development A project to emulate the Northern Cape success and further advance the level of achievement in Waterberg District, will be incorporated in phase four (Project section) of the mining development strategy formulation process. 4.4 Regional Integration To be completed with specific reference to the extension of the Waterberg Coal Field into Botswana and the platinum mining industry in North West Province. 37 5. SUMMARY AND CONCLUSION The actions that are required towards the completion of the phase three discussion document and the preparation of the phase four projects report are listed below: 5.1 Establish the Waterberg District Mining Cluster Working Group from among stakeholders to review the mining strategy formulation process and content; and also to pursue the issues that were raised in the presentations during the workshop. 5.2 Verify the exploration information for the Waterberg District with DME. 5.3 Request Anglo Platinum for information on smelter production and the interpretation of information on the reserves at existing platinum mines in Waterberg District. 5.4 Establish consensus with Kumba Resources, Eskom, Anglo Coal, TIL and Spoornet regarding a joint agenda on coal for inclusion in the Waterberg Mining Strategy. Lephalale Municipality must be part of this consensus. 5.5 Engage Kumba Resources in order to find areas where Project Phoenix (extending the life of Thabazimbi Iron Ore Mine) can be supported. Discussions with TIL and DME (and possibly Kumba Resources) to fast track the development of the Molendraai Vanadium deposit, are also imperative. 5.6 Arrange a discussion with De Beers in Limpopo to discuss the draft mining strategy and options for new diamond mining development on the back of all the current exploration activity. 5.7 Discuss the mining strategy process and content with dimension stone manufacturers and give them an opportunity to make comments and recommendations. 5.8 Form a better understanding of development opportunities for chrome in Waterberg District through discussion with the Council for Geoscience and Anglo Platinum (on chromite tailings). 5.9 Include the recovery of tin residues from old mine dumps as a project in the next phase of the mining strategy formulation process. 5.10 Engage DWAF with regard to the water development plan for Mokopane and how the deficit will be addressed. 5.11 Form a workgroup comprising WDM, the Department of Labour in Limpopo and the Mining Qualifications Authority to map out a joint agenda for mining skills development in the Waterberg District. 38 5.12 Establish a procurement initiative for Black economic empowered suppliers in Waterberg District and facilitate the necessary business development support in order to promote sustainability at the required standards of performance. This will become one of the projects in phase four of the mining development strategy formulation process. 5.13 Incorporate the work of the town planning consultants in Mapela into the District and the Mokopane Spatial Development Plans and replicate this in other rural areas where land-use management interventions are required. 5.14 Complete the section on the regional integration of mining with neighbouring provinces and countries. 39 ANNEXURE ONE Information on Prospecting in Waterberg District FARMNAME NO REGDIST Status Comodity Application BRONKHORSTFONTEIN 42 LR Accepted All minerals KRONE 104 MS Granted All types of Diamond PR conv ROSENDALE 221 MR Granted Copper Prospecting Right ECARTE 156 LQ Accepted coal Prospecting Right GRAAFF REINET 179 LQ Accepted coal Prospecting Right HARDEKRAALTJE 212 LQ Accepted coal Prospecting Right ARNHEM 432 LR Accepted diamond (all) Prospecting Right REWARD 435 LR Accepted diamond (all) HONEYDEW 86 MR Accepted Diamond (Alluvial) KWARRIEHOEKPOORT 108 MR Accepted Diamond (Alluvial) MODDERFONTEIN 114 MR Accepted Diamond (Alluvial) VLEDERMUISFONTEIN 125 MR Accepted Diamond (Alluvial) Prospecting Right New Rec permission New Rec permission New Rec permission New Rec permission EERSTE GELUK 107 MR Accepted Diamond (Kimberlite) Prospecting Right BOTTELLANG 115 MR Accepted Diamond (Kimberlite) Prospecting Right ENKELFONTEIN 124 MR Accepted Diamond (Kimberlite) Prospecting Right SUMMERFIELD 145 MR Accepted Diamond (Kimberlite) Prospecting Right MOWBRAY 142 MR Accepted Diamond (Kimberlite) Prospecting Right KLASENBOSCH 141 MR Accepted Diamond (Kimberlite) Prospecting Right DOORNKRAAL 15 LR Accepted Diamond (Kimberlite) Prospecting Right DEPTFORD 16 LR Accepted Diamond (Kimberlite) Prospecting Right HALLA 23 LR Accepted Diamond (Kimberlite) Prospecting Right BALTIMORE 22 LR Accepted Diamond (Kimberlite) Prospecting Right HUGO DE GROOT 116 LR Received Diamond (Kimberlite) BADEN 90 LR Accepted Manganese Ore MELKBOSCH 139 MR Accepted Nickel, Copper & Diamond Prospecting Right 40 FALMOUTH 26 LR Accepted Nickel, Copper & Diamond Prospecting Right WOOLWICH 13 LR Accepted Nickel, Copper & Diamond Prospecting Right GOUDA FONTEIN 76 LR Accepted Nickel, Copper & Diamond Prospecting Right JULIETTA 112 LR Accepted Nickel, Copper & Diamond Prospecting Right IMMELMAN 119 LR Accepted Prospecting Right MELBOURNE 34 LQ Accepted Nickel, Copper & Diamond Nickel, Copper & Diamond Corundum, vanadium MOONLIGHT 111 LR Accepted Nickel, Iron, Manganse ore, Copper & Diamond Prospecting Right MELKBOSCH 125 LR Received / Accepted Nickel, Iron, Manganse ore, Copper & Diamond Prospecting Right LILY 47 LQ Granted Pgm Prospecting Right BEAUTY 56 LQ Granted Pgm Prospecting Right Prospecting Right Source: Council for Geoscience Limpopo from Department of Mineral and Energy, Limpopo; 2006 41 ANNEXURE TWO 42 ANNEXURE THREE MINING DEVELOPMENT STRATEGY: STAKEHOLDER CONSULTATION WORKSHOP DATE: 17 MARCH 2006 VENUE: WDM CONFERENCE ROOM IN MODIMOLLE TIME: 09H00-13H00 ATTENDANCE: SEE ATTENDANCE REGISTER ATTACHED 1. OPENING The Municipal Manager, Mr. Parks Sebatjane, opened the workshop and welcomed all delegates. He emphasised the importance of developmental government, the achievement of developmental objectives and effective cooperation between the public and private sectors for the sake of improved living standards for all citizens. The Manager Planning, Mr. Bali Mamabolo indicated that the purpose of the workshop is to describe the role of various stakeholders in promoting accelerated mining development in the Waterberg District. This is part of process to formulate and implement a mining development strategy for the district, which in itself is part of a broader initiative to realize the considerable development potential within the District. This broader initiative emanates from the Limpopo Growth and Development Strategy in which platinum and coal mining, as well as the petro-chemical industry, are identified as primary competitive clusters for value chain development within the Waterberg District. 2. INTRODUCTION OF DELEGATES Delegates introduced themselves. Names and contact details are reflected on the attached attendance register. 3. OVERVIEW OF POLICY CONTEXT AND CURRENT MINING SITUATION Mr. Glen Steyn gave an overview of the current mining policy environment as contained in the first phase document of the WDM Mining Development Strategy. The five main observations were that: WDM is obliged in terms of the Mineral and Petroleum Resources Development Act to promote mining development in its area by way of network and relationship building, WDM should promote local BEE in the context of the Mining Charter, which in itself is silent on the geographic distribution of beneficiaries, Platinum and coal, which is where the mining potential of the Waterberg lies, are two of the seven competitive cluster value chains 43 that are being promoted by the Limpopo Growth and Development Strategy, Mining development and the associated public sector interventions, such as water provision, road construction and skills improvement, are reflected as priorities in the WDM IDP and LED documents, and Government support for geomagnetic exploration was an effective incentive for mining development in South Australia, which serves as a useful case study for WDM. With regard to the current mining situation it was emphasised that commodity sales appear to have stagnated at approximately R11 billion per year from 2001 to 2004. Platinum is by far the most dominant commodity, accounting for almost 84% of sales, followed by coal (11%) and iron ore (4%). A range of other commodities, including diamonds and dimension stone, are together responsible for the remaining 1% of sales. The expected life of Thabazimbi Iron Ore Mine is limited to another 8 years. Employment in the mining sector in WDM is also declining, from 14,857 persons in 1996 to 13,323 in 2001. The decline is particularly acute in Thabazimbi Municipality. Mogalakwena and Lephalale Municipality’s reflect an increase in mining employment, but not sufficient to offset the decline in Thabazimbi. Capital expenditure to maintain mining operations is ongoing, but very little is currently being invested in new mining development. The conclusion from the current mining assessment is that the business as usual scenario does not point towards a greater developmental role for the mining sector in the short to medium term. If anything, the role of the mining sector appears to be declining in the context of the Waterberg district economy. A deliberate and carefully considered intervention will be required if the business as usual scenario is to be effectively changed. 4. OPPORTUNITIES FOR DEVELOPMENT 4.1 New Mining It was pointed out that opportunities for development could be found in the following mining commodities in the sequence in which they are reflected below: Platinum Group Metals Coal Iron Ore Dimension Stone Chrome Tin and fluorite. 44 4.2 Upstream Business Development Mr J Streuders from Decti Rating Agency gave a brief background on the South African Mining Procurement Potential Forum (SAMPPF). He indicated statistics showing that only an insignificant percentage of procurement in the mining sector in Limpopo came from HDSA. This was mainly for the supply of routine services such as security and cleaning. He recommended that a Mining Procurement Strategy be developed, which will enable HDSA to supply Leverage Commodities. Northern Cape has already achieved some successes in this regard. 5. CHALLENGES TO MINING DEVELOPMENT IN WDM 5.1 Water DWAF Planning Engineer, Mr. Ockie van den Berg, indicated the need to for a Strategic Environmental Impact Analysis before any mining development is embarked upon. He gave a presentation on the development of water resources in WDM. The two main projects currently underway are the Olifants River Water Transfer and the Mokolo River Augmentation. A water deficit is anticipated in Mogalakwena Municipality from 2007, which is expected to escalate to 18 million cubic meters of water by 2025. The preliminary programme for the Mokolo River Augmentation Project is for construction to commence in April 2008 and for the commissioning of the new facilities in July 2010. 5.2 Roads Mr Jerome Maimele gave an overview of roads, their condition and amounts required to surface them. He indicated that it will require R15 billion to surface roads in support of mining development in WDM. The RAL priorities in WDM for the next five years are: Bakenberg to N11 Marken to Gilead Repairs to Kloofpas Bridge Dwaalboom to the new PPC Mine, and Bela Bela to Koedoeskop. The Northam road has just been completed and the Lephalale to Modimolle road is to be transferred to the National Roads Agency. 5.3 Skills Development Mr Billy Attard, Ms Seema Harmse and Mr Keith Charles presented on the National Skills Strategy and the Mining Qualification Authority contribution to the Waterberg Mining Strategy. The indication was that there are funding windows under the NSF which could support the strategy. A port of call would be the local labour centre of the DOL. On the other hand the MQA can only use mandatory grants for employers and discretionary grants for NGO’s and other skills development efforts related to mining. It should be noted that the NSF has other funding windows e.g for stakeholder capacity building. There are also other Seta’s which could be 45 relevant to assist from their discretionary grants in the development of skills for areas falling within their scope of operation. which may be complimentary to mining while falling outside the MQA. 5.4 Research and Development Dr. Declan Vogt, the Competency Area for Mining at CSIR, confirmed the mining potential in WDM in the commodity sequence that was indicated above. Within the mining value chain, the Council for Geoscience is the primary research institution for exploration, the CSIR for extraction, Mintek for processing and the CSIR again for product development. DME has a sustainable development for mining programme and Mintek has a Mineral Economic Strategy Unit. Dr Vogt confirmed that although research and development programmes have a long term focus, these processes can contribute significantly to the mining strategy for WDM. 6. STAKEHOLDER COMMENTS 6.1 Mr Mhleli Nkuna from The Oaks Mine indicated that their only source of water is a borehole. This is causing a confrontational relationship with local farmers. 6.2 A representative from Angloplat expressed the need for local government facilitation with regard to interactions between mines and local communities (including traditional authorities). Leadership from government is also required in terms of town planning, housing and recreational facilities development within settlements that are located within the proximity of mines. This is essential in an attempt to retain scarce skills in rural areas. 6.3 A representative from the Department of Economic Development and Tourism in Limpopo emphasised the importance of closer co-operation between stakeholders to emulate the successes achieved in Northern Cape. 6.4 A representative from the Premier’s Office in Limpopo stressed the need for business development support to promote the sustainability and success of local small enterprises upstream in the mining value chain. 6.5 Other participants suggested that stakeholders such as Eskom, Mintek, Spoornet and development finance institutions should be included in the mining development strategy formulation process. 7. RECOMMENDATIONS AND CONCLUSIONS 7.1 A Waterberg District Mining Cluster Working Group will be established from stakeholders to review the mining strategy formulation process and to pursue the issues that were raised in the presentations during the workshop. This approach is consistent with the recommendations of the Limpopo Growth and Development Strategy and with the Limpopo Mining Summit, specifically with regard to competitive cluster 46 promotion. It is also consistent with the successful strategic mining sector development approach that was adopted by South Australia. 7.2 The Waterberg District Mining Cluster Working Group will present its findings to a broader stakeholder forum for the mining sector that will include the delegates at the workshop, as well as the institutions that were recommended for inclusion. 47 ANNEXURE THREE: ATTENDANCE REGISTER FOR THE FIRST MINING STRATEGY WORKSHOP 1. NAME Livhu Nengovhela MQA ORGANIZATION 2. Mayimela S.J. RAL 3. Johan Streuderst SAMPPT 4. Bernie Badenhorst DWAF (Polokwane) 5. Ockie van den Berg DWAF (Pretoria) 6. Galia Doudenska DWAF (Pretoria) 7. Siliga N.R Waterberg D. Municipality 8. Sutume Lethole Waterberg D. Municipality 9. Makamatleng N.J LEDET 10. Charlotte Well 11. 12. Laurentia Kwenaesele Keith Charles Platinum Mile 594INV.pty Ltd Platinum Mile 594INV.pty Ltd MQA 13. Gibson Nyanhongo Labour 14. Ratau T LEDET 15. H.E Maitsapo Waterberg D. Municipality 16. Pheeha M.T Office of the Premier TEL 011 630 3503 015 297 6433 012 807 3141 015 290 1218 012 336 8613 012 336 8492 014 7171 344 014 7171 344 014 717 1344 014 787 0333 014 787 0333 011 630 3500 014 717 1046 082 802 3236 014 7171 344 015 287 6044 FAX 011 832 1044 E-MAIL livhun@mqa.org.za 015 297 6789 mayimelasj@ral.co.za 012 807 2369 jdstreud@mweb.co.za 015 295 3250 badenh@dwaf.gov.za 012 336 7399 vdberg@dwaf.gov.za 012 336 7399 galiad@dwaf.gov.za 014 717 3886 nsiliga@waterberg.gov.za 014 717 3886 slethole@waterberg.gov.za 014 717 3886 makamatlengnj@ledet.gov.za 014 787 0332 chromite@lantic.net 014 787 0332 chromite@lantic.net 011 832 1027 keithc@mqa.org.za 014 717 1051 gibsonnyanhongo@labour.gov.za 295 4863 rataut@ledet.gov.za 014 717 3886 hmaitsapo@waterberg.gov.za 015 291 2620 pheehat@premier.norprov.gov.za 48 17. Makwana M.I Waterberg D. Municipality 18. Lebopa N.E LEDET 19. Zara Marais Urban Econ 20. Declan Vogt CSIR 21. Percy Mongalo Glen Steyn & Associates 22. Hanyani Ngobeni Glen Steyn & Associates 23. Glen Steyn Glen Steyn & Associates 24. Seema Harmse Dept of Labour 25. Billy Attard Dept of Labour 26. Hawie Viljoen 27. Mhleli Nkuna Glen Steyn & Associates/BPS The Oaks 28. Sebatjane Parks Waterberg D. Municipality 29. Mamabolo B Waterberg D. Municipality 30. Makboba M Waterberg D. Municipality 31. Magale Ms Mogalakwena 014 7171 344 083 383 3354 012 342 8686 011 258 0213 015 291 3021 015 296 0361 015 296 0361 015 290 1656 015 290 1641 012 564 5531 014 767 3009 014 7171 344 014 7171 344 014 7171 344 015 491 9632 014 717 3886 imakwaana@waterberg.gov.za 014 717 5200 lebopa@ledet.gov.za 12 342 8688 zara@urban.econ.com 011 726 5405 dvogt@csir.co.za 015 291 3021 makgoba@worldonline.co.za 015 296 0363 hanyani@econosec.co.za 015 296 0363 glen@econosec.co.za 015 290 1661 Seema.harmse@labour.gov.za 015 290 1740 Billy.attard@labour.gov.za 012 253 5019 hw@bpsbizdesigns.co.za 014 767 5368 Mhleli.nkuna@debeersgroup.com 014 717 3886 ekelly@waterberg.gov.za 014 717 3886 bmamabolo@waterberg.gov.za 014 717 3886 mmakgoba@waterberg.gov.za 015 491 9755 magalem@mogalakwena.gov.za 49