International agreement signed for the implementation of a R39 billion power station in Musina, Limpopo, South Africa.
The development of a power station, the 5th to be operated in this province, will supply industrial consumers who process mineral resources into a finished metal product state, Business report reported.
The Chinese deal was revealed by Premier Stan Mathabatha during an interview with The Star, Business report said.
The partnership included the Limpopo Economic Development Agency (Leda), a provincial state entity, and Chinese firm Hong Kong Mining Exchange Company, Mathabatha said.
According to Mathabatha, the project considers local content and will significantly add to job creation and socio-economic upliftment.
‘That project has the capacity to employ 19 000 people; it’s going to be in the vicinity of Musina’, he said.
Lesley Masia, managing director of Leda said the power station will offer power security for the metal plants and assist in reducing electricity tariffs.
Masia assured that the province would not incur any costs in the process although it would hold an equity stake which was still to be decided, Business report reported.
‘We will use coal to generate electricity for the metallurgical cluster project. The only difference is the deployment of modern technology that will result in less carbon emission…
It is premised on alloy plants that process resources at various stages into different finished products that will then be exported’, Masia said.
According to Mathabatha, in addition to the Chinese deal, the Jidong Development Group invested R2 billion to implement the R1.6 billion Mamba cement manufacturing project in Thabazimbi, making them majority shareholder, Business Report reported.
The China Africa Development Fund and South African Women Investment Portfolio Holdings Limited (Wiphold) and Continental Cement (Conticem) are equity holders in the cement project, Business Report reported.
‘On that project alone, 100 artisans will be sent to China for training. We will not be importing labour from China, only scarce skills’, said Mathabatha.