Eskom's solar power demonstration plant

• Aim of project: The construction of a solar-power demonstration plant to assess the feasibility of solar power as a large-scale renewable-energy source
• Cost of project: R5-billion. Eskom will contribute R3-billion and source the balance through funding
• Completion date: 2014

Eskom plans to establish a pilot 100-megawatt concentrating solar power (CSP) plant in the Northern Cape that will serve as a demonstration plant for the utility's plan to generate thousands of megawatts of base-load power from solar energy.

If the CSP plant proves commercially feasible, it could signal the green light for the construction of a 1 000-megawatt plant. Eskom is currently investigating the maximum power it can generate through solar power in a bid to meet its current objective to add 1 600 megawatts of renewable energy from solar, hydro, wind and biomass sources to its power grid by 2025.

Progress: An environmental-impact assessment has been done and environmental authorisation has been obtained from the national Department of Environmental Affairs and Tourism. The project-feasibility assessment has also been finalised. Eskom is now in the process of trying to rally support for the project.

Contractors: Sarens (mobile-crane hire)

www.eskom.co.za

Iron-ore export channel expansion programme

• Aim of project: To increase the capacity of the Sishen-Saldanha Iron-Ore Export Channel by a total of 22 million tonnes per annum
• Cost of project: R4-billion
• Completion date: 2012

In August 2008, Kumba Iron Ore Limited and Transnet Limited announced plans to further upgrade and expand the Sishen-Saldanha Iron-Ore Export Channel to 60 million tonnes per annum. Nine million tonnes per annum of the additional capacity is to be allocated to Kumba for the development of its new mine, Sishen South, located near Postmasburg.

The rail upgrade will include increasing rolling stock, upgrading electricity infrastructure, and constructing loops and a 36km rail link to service Sishen South.

Progress: The iron-ore line is currently being expanded from 38 million tonnes per annum to 47 million tonnes per annum. This is expected to be completed by late 2009, early 2010, when the next phase of expansion will begin.

www.kumba.co.za

Kalagadi Manganese project

• Aim of project: To meet the growing global requirement for steel producers to backwardly integrate with manganese and other raw materials required for steelmaking
• Value of project: R4.3-billion
• Completion date: The sinter plant will be completed in April 2010 and the smelter in June 2010

In a 50-50 joint venture, Kalagadi Manganese and ArcelorMittal will construct a manganese mine and a 2.4-million-tonnes-per-annum sintering plant near Hotazel in the Northern Cape and a ferromanganese smelter complex at the Coega Industrial Development Zone in the Eastern Cape.

Kalagadi Manganese is a women-owned, broad-based black economic empowered company comprising the Industrial Development Corporation (20%) and Kalahari Resources (80%). South Africa is currently the largest producer of ferro-alloys in the world, holding about 80% of the world's manganese reserve base.

Progress: The sinking of the shaft on Umtu Farm, in the Kalahari manganese fields, began in March 2008.

Contractors: Mineral Corporation (geological consultant); MDM Engineering (BFS); Shaft Sinkers (shaft sinking); Neutron Engineering (bulk earthworks for the shaft); Tubular (mainand ventilation-shaft headgears)

www.kalahariresources.co.za

Khumani iron-ore project

• Aim of project: The development of a greenfields iron-ore export mine that will ensure the continued mining of iron ore in the Northern Cape for another 30 years
• Cost of project: Phase 1 is estimated at R4-billion; Phase 2 is estimated at R7.3-billion
• Completion date: Phase 1 is complete. The feasibility study for Phase 2 was due for completion in the second quarter of 2009.

Assmang, a 50-50 joint venture between African Rainbow Minerals and Assore, is undertaking the Khumani iron-ore project, which involves the two-phase development of an iron-ore export mine on the Bruce, King and Mokaning farms near Postmasburg in the Northern Cape.

Assmang's existing Beeshoek iron-ore mine is reaching the end of its life and will not be able to sustain its current production level of six million tonnes per annum for much longer. The Khumani iron-ore deposits, located approximately 60km north of the Beeshoek mine, are among the best iron-ore resources in South Africa in terms of quality and quantity. Based on current reserves, a new mine producing 8.4 million tonnes per annum would have a life in excess of 40 years and, at 16.8 million tonnes per annum, a life in excess of about 25 years.

Progress: The first phase, the development of a 10-million-tonnes-per-annum mine, is already complete. The second phase will see the expansion of the mine from 10 million tonnes per annum to 16 million tonnes per annum. Assmang is also studying the feasibility of a further expansion that will take production to between 18 and 22 million tonnes per annum. Of this, between 16 and 20 million tonnes per annum will be destined for export.

Contractors: Africon; SRK Consulting Engineers and Scientists; DR; Metso; Voest-Alpine Materials Handling; Barloworld; Osborn Engineered Products; Polysius; Humboldt Wedag SA; Joest; Concor Holdings; Rockwell Automation; Warman Africa; Zest Electric Motors; Shaw Controls; ScanMin; M&J Engineering; R&H Railway Consultants; Edison Jehamo Power; VVB Construction; Bateman; Matador; Murray & Roberts/Grinaker-LTA; Alstom; ECMP; Sandvik; Life Occupational Health; Ivusi; Matomo; Aberdare Cables; Cosira Tubular JV; Roymec; Crane Load Tech; Charles Corbett Photography; B&W and Brandt; Shelela Foods; Eclipse Networks; Shaw Controls; Goodyear; SA Fence & Gate; Fabricated Steel Manufacturers; Botes & Kennedy Manyano; Elan Civils cc; Rufco Engineering; VAE; Swift Flite.

www.assmang.co.za

Sishen South project

• Aim of project: The development of a new greenfields open-cast iron-ore mine that will produce direct-shipping ore for export, supporting Kumba Iron Ore's plan to increase the iron-ore export channel to 60 million tonnes by 2013
• Cost of project: R8.5-billion
• Completion date: The mine is expected to start producing in 2012, reaching full capacity in 2013

Kumba Iron Ore's Sishen South project involves the development of a nine-million-tonnes-perannum iron-ore mine, located 12km south-west of Postmasburg and 85km south of Sishen Mine in the Northern Cape.

The iron ore will be transported on the Sishen- Saldanha Iron-Ore Export Channel along a 36km rail link that is to be constructed to the port of Saldanha Bay.

Power will be sourced from Postmasburg via a new Eskom line to be constructed between Postmasburg and Sishen South mine. A new substation will be installed on the new mine and the existing substation in Postmasburg will be upgraded.

Sishen South has a projected life of around 20 years and will employ about 750 people. Roughly 2 000 jobs will be created during construction and indirect job creation is estimated at 4 000.

Progress: In August 2008, Kumba announced the approval of an R8.5-billion investment in the Sishen South mine.

www.kumba.co.za