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  1. 6h ago

    AECI gearing up to invest up to R900m in Modderfontein optimisation

    Mining explosives and chemicals group AECI is preparing to invest between R700-million and R900-million to modernise its historic Modderfontein facility, in Gauteng, which the group views as key to its ongoing competitiveness in southern and central Africa. CEO Alan Dickson, who took up the position on July 1, tells Engineering News & Mining Weekly that the company has already made some initial investments at the facility in a bid to improve efficiencies and raise utilisation levels. Speaking following the release of improved interim results for the period to June 30, he described these low-capital investments as the first phase of a larger optimisation plan for Modderfontein, whose future was in doubt a few years ago. "The second part of that is a larger-scale, more complex exercise, which focuses on a number of the core parts of the business," Dickson said in an interview. He indicated that the complex engineering work for the next phase was under way and would be followed by a contracting phase ahead of project execution. The brownfield investments will take place within AECI's existing footprint and are expected to be completed over a three- to four-year horizon. The project will seek to sustain AECI's competitive position in southern and central Africa, which remain core markets, alongside the group's focus on expanding into the Asia-Pacific region as part of the ongoing internationalisation of its core mining-related business. AECI's mining business was also the standout performer during the interim period, when the group reported a 20% rise in interim profit from continuing operations to R837-million. Despite a 4% period-on-period decline in revenue, to R15.1-billion from R15.7-billion, earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 2% to R1.6-billion, while headline earnings a share rose 8% to 653c. AECI declared an interim dividend of 116c/share, which was 16% higher period-on-period. Dickson indicated that the outlook for the mining business remained strong for the second half, supported by the securing of new contracts in Mali, Zambia, Burkina Faso and South Africa, as well as the successful renewal of key contracts in South Africa, Tanzania, the Democratic Republic of Congo and Burkina Faso. Results for AECI Chemicals, meanwhile, were dampened by the poor performance of AECI Schirm Germany, where challenging market conditions resulted in operating losses and an impairment charge of R320-million. Excluding Schirm, the part of the segment referred to by AECI as 'Chemicals Core' delivered a strong performance, with Ebitda increasing by 14% to R365-million. However, Dickson said there had been no further decisions on non-core disposals and that further clarity on any "strategy refresh" would be provided when the group reported its year-end results. He stressed, though, that there would be no deviation from the three strategic pillars already in place, which seek to leverage the group's strengths, prioritise resilience and enhance the quality of earnings. During the six-month period, the focus on resilience led to an investment in inventories in response to volatility in raw material pricing and supply arising from disruptions to shipping in the Strait of Hormuz. While geopolitical volatility was expected to persist in the second half, Dickson indicated that there was potential for some unwinding of working capital during the period, which could improve free cash flow. AECI was also closely monitoring the influence that the current Super El Niño could have on the domestic agriculture sector, however, which could affect sales for its plant health business in the second half or in the new year. "While market conditions remain mixed, particularly in chemicals, our mining business continues to perform strongly, our balance sheet remains strong, and we remain committed to delivering predictable, sustainable value through disciplined execution and operational excellence," Dickson said.

  2. 4d ago

    Lamola calls for value-added critical minerals industry to drive Africa's industrialisation

    Africa must seize the global critical minerals opportunity to accelerate industrialisation, create jobs and deepen regional economic integration rather than continue exporting raw materials, International Relations and Cooperation Minister Ronald Lamola argues. Speaking at the Ambassadorial Breakfast on Africa's Growth Through Critical Minerals event, hosted by Absa in partnership with the Department of International Relations and Cooperation (Dirco), in Johannesburg, on August 7, he said Africa's vast critical mineral endowment positioned the continent at the centre of the global energy transition. He noted that Africa possesses many of the minerals required for clean energy technologies, including platinum group metals (PGMs), copper, manganese, bauxite and graphite, making the continent indispensable to the global transition to a low-carbon economy. "Our continent has many of the minerals that are critical to the global energy transition. These minerals are essential to technologies, ranging from solar panels and wind turbines to electric vehicles and energy storage systems. Africa is, therefore, central to the transition to a low-carbon future," Lamola said. However, Lamola cautioned that resource abundance alone would not guarantee prosperity and said Africa must break longstanding patterns in which minerals are exported for processing elsewhere before being re-imported as higher-value products. He stressed the need for greater beneficiation and industrial capacity across the continent. He also warned that rising demand for critical minerals could either usher in a new era of shared prosperity or intensify extraction, conflict and instability on the continent if governments failed to implement prudent, long-term and localised growth-enabling policies. Meanwhile, Lamola has also welcomed policy interventions by countries including South Africa, Namibia, Zimbabwe and Malawi to promote local value addition, highlighting that these efforts support the implementation of the African Green Minerals Strategy and the G20 Critical Minerals Framework. "Within [the G20 last year,] intra-Africa payment systems [were highlighted] as a critical area of cooperation. "How we manage the promise and peril of this moment will determine whether we realise Agenda 2063's vision of a peaceful, integrated and prosperous Africa anchored in the ideals of Pan-Africanism and the African Renaissance," Lamola said. He also stressed that industrialisation was essential to addressing Africa's demographic challenge, noting that while between ten-million and twenty-million young people enter the labour market each year, Africa creates only about three-million formal jobs a year. Lamola's remarks echoed those of Absa Group CEO Kenny Fihla, who highlighted that Africa had reached a defining moment as growing global demand for critical minerals repositioned the continent as a strategic player in the global economy. "Africa is at an inflection point. Global demand for critical minerals has repositioned our continent as a strategic supplier to the world but the question we must now confront more fundamentally is whether Africa can harness this moment to power its own industrialisation," Fihla said. He also argued that unlocking the continent's mineral wealth would require closer collaboration between governments, finance and industry, stronger implementation of the African Continental Free Trade Area (AfCFTA) and greater investment in regional industrial capacity, adding that Africa's "future competitiveness would be determined not by what it extracts, but by what it builds". Lamola called on business to work alongside governments to accelerate growth through mining, manufacturing and agriculture, arguing that stronger public-private partnerships would be essential to unlocking Africa's economic potential. He concluded by pointing out that addressing the root causes of migration, including unemployment, weak economic growth, climate change and conflict, woul...

  3. 5d ago

    IDC sets R51.5bn disbursement target as it aligns strategy to new industrial thrusts

    South Africa's Industrial Development Corporation (IDC) has set a target of disbursing R51.5-billion in funding over the coming three financial years having aligned its corporate plan to government's new industrial strategy. In a presentation this week to Parliament's Select Committee on Economic Development and Trade, acting COO David Jarvis reported that the State-owned development financier would continue to support established industries while seeking to catalyse future-focused value chains identified in the Industrial Development Strategy (IDS) of 2026. The IDS was unveiled by Trade, Industry and Competition Minister Parks Tau earlier this year and has been anchored on industrialisation pathways associated with decarbonisation, diversification and digitalisation. The IDC indicated that it is gearing up to support growth in critical minerals and battery value chains, green and circular-economy industries, tourism and services, digital and blue-economy activities, agro-industrial expansion, and the industrial infrastructure needed to support higher levels of productivity. It will also invest in regional industrial value chains, but do so in partnership and as a minority shareholder. The corporate plan envisages disbursements of R16.3-billion in the 2026/27 financial year, R17.4-billion in 2027/28 and R17.8-billion in 2028/29, with the primary funding source being internally generated cash, with limited borrowings. It is envisaged that R17.4-billion will be directed towards manufacturing, especially machinery, equipment and electronics, followed by energy and infrastructure (R11.7-billion), mining and metals (R5.8-billion), agro-processing (R4.5-billion) and tourism and services (R2-billion). Jarvis reported that the group would also seek to implement structural savings of R1.6-billion over the period. The presentation was made while Parliament's Portfolio Committee on Trade, Industry and Competition was hosting a separate colloquium on the IDS, which also proposes various support measures for existing industries facing cost and import pressures, including steel, smelters and automotives. Interventions under consideration range from special electricity pricing deals and higher import tariff protection to tax incentives, with the goal of stabilising manufacturing, whose contribution to GDP has fallen to about 13% from 21% in 1994. In a presentation to the committee, the Department of Trade, Industry and Competition (dtic) suggested that consideration be given to exempting the IDC from corporate income tax "in order to facilitate industrial development". In addition, the dtic proposed that South Africa should consider enabling the IDC and the Development Bank of Southern Africa to play a greater role in the ownership and financing of strategic sectors under the ownership of the government, making specific reference to Foskor and ArcelorMittal South Africa (AMSA). AMSA is currently trading under a cautionary relating to its ongoing talks with the IDC over a possible transaction, while Foskor, which is a fertiliser producer, is already an IDC subsidiary. The IDC made no reference to the possible AMSA transaction in its presentation. In response to questions, it confirmed that Foskor was facing fresh financial pressures following recent improvements that had arisen from the implementation of a turnaround strategy. These new difficulties were attributed largely to an increase in the price of key inputs such as sulphur and ammonia, which had surged as a result of disruptions to shipping in the Strait of Hormuz.

  4. 5d ago

    Terence Creamer talks about: Creation of an independent TSO in the spotlight

    Engineering News editor Terence Creamer discusses President Cyril Ramaphosa's endorsement of the Phase I report of the Eskom Restructuring Task Team, which supports the creation of a new independent Transmission System Operator, as well as what this means and the next steps to be

  5. 6d ago

    Saffron a potentially lucrative crop for South African farmers, says country's first mover

    Saffron is the world's most expensive spice, priced at between $5 000 and $10 000 a kilogramme. Iran is the world's biggest producer, pushing out between 85% to 90% of yearly global production, followed by Afghanistan and India in a distant second and third spot. South Africa doesn't feature anywhere on the list of significant global producers, but, when considering the arid landscape of the countries where the saffron flower thrives, one can conceive that it would be able to grow in certain parts of the country. Cue Bennie Engelbrecht, former SuperSport producer who studied agriculture and, in 2013, at the age of 47, decided to swap the broadcast industry for farming. Engelbrecht didn't choose just any old crop to kick off his new career, but one that hasn't yet been produced in South Africa at scale – saffron. Following extensive research, he imported bulbs from The Netherlands and started the cultivation process in Pretoria. From here on, he moved to the Calvinia area, and then finally on to Piketberg, in the Western Cape, in 2023 – an area he ultimately found to be well-suited to saffron production. Today, Saffricon is an agricultural company that cultivates and commercialises saffron; supplies acclimatised saffron bulbs to other farmers; and also supports local small-scale and commercial saffron farmers. "It took two years before we could harvest the first saffron," says Bennie's son and Saffricon marketing and strategic manager Tiaan Engelbrecht. That first harvest delivered a steep learning curve, he adds. Saffron is called red gold for a reason. Each purple flower from a saffron plant produces only three tiny red threads (stigmas). The flowers must be hand-picked, and the delicate threads pulled out by hand to dry – a process which sees the threads lose roughly 80% of their mass. The end-result – the tiny, delicate, deep-red dried thread – is called saffron. It takes about 75 000 to 150 000 flowers to make 500 g to one kg of dry saffron. "Another challenge with harvesting saffron is that you must collect the flowers within 24 hours of the petals opening to ensure the best quality product," explains Tiaan. "Also, when you finally reach the other side of the field, new flowers may have opened up where you started harvesting this morning, which means that you have to go back and rework the field." Harvest time is usually a nonstop process for a three- to five-week period in May and June. Harvesting saffron is such swift, backbreaking work that Saffricon is currently testing the use of a wearable, powered exoskeleton device to assist workers with the continuous bending down in the sandy soil in which saffron grows in South Africa. "It is not possible to mechanise the harvesting, as the work is much too delicate. It is, however, possible to assist the workers who harvest the flowers," says Tiaan. During growth season, it takes between 25 and 30 people to bring in the Saffricon harvest. "Saffron is a labour-intensive crop, and we regard this as a good thing in South Africa," says Tiaan. Today Saffricon farms saffron on 5.5 ha of land. Other South African farmers have also turned to saffron, but not on Saffricon's scale. "We'll only buy saffron from other Saffricon certified growers," notes Tiaan. "Counterfeit saffron has become a huge issue in the international market." True South African saffron is some of the best quality in the world, he adds. "The International Organisation for Standardisation says we produce grade 1 saffron. "We believe large parts of the Western Cape, Eastern Cape and Northern Cape are well suited to growing saffron." Saffron needs little water – around 350 mm for the entire season, says Tiaan, with small fields able to deliver high yields. Western Cape saffron is also harvested when the province's traditional crops are typically still growing, or dormant. Saffron's use is also expanding, says Tiaan, which will boost production in the long run. It is traditionally used to season dishes such as paell...

  6. 6d ago

    NTCSA looks to Chinese investment to bolster TDP rollout

    South Africa's electricity sector is facing an "interesting challenge", with the grid not designed for dispatched generation of intermittent energy sources, National Transmission Company of South Africa (NTCSA) CEO Monde Bala told delegates at the South Africa-China Electricity & Energy Investment Conference, being held in Beijing, China, this week. To accommodate the changes in the energy mix and the change in geographical location of those energy sources, the NTCSA, a subsidiary of State-owned power utility Eskom, is undertaking the Transmission Development Plan (TDP). However, it does not have the requisite capacity to undertake the necessary expansion of the grid on its own and is calling on international partners to assist. The conference is a high-level investment mission by South Africa's Electricity and Energy Minister Dr Kgosientsho Ramokgopa, aimed at unlocking strategic partnerships and investment for the country's energy future. Bala acknowledged that the TDP's aspirations are "ambitious", but that this is what is required. While the entity is currently "struggling" to meet the required pace, "with a lot of effort and intervention", it would be able to deliver, he assured South Africans during an interview on the sidelines of the event. Bala pointed out that, with the TDP in its second year of implementation, with several lines having started, the pace is still a little slow as delivery mechanism are shored up. Bala stressed that "any tardiness" on the rollout of the TDP would impact on the rollout of the Integrated Resource Plan (IRP) and that the NTCSA is cognisant of what is at stake. He assured that measures are in place to hold the entity accountable. Bala explained that the IRP sets out a target of about 105 GW of new generation capacity by 2039 and that this generation requires transformation of the national transmission grid to ensure the generation reaches customers and supports industrial growth. Bala highlighted that priority transmission expansion projects represent a R134-billion in investment opportunity, within a broader R440-billion decade-long programme. This TDP programme entails the construction of about 14 500 km of new transmission lines by 2034 and the installation of about 133 000 MVA of transformer capacity. The R134-billion figure represents prioritised NTCSA transmission expansion projects across the country and is a concrete near-term package within the broader TDP. The TDP outlines a sequenced, decade-long response aligned to IRP period one which runs from this year to 2030, and period two which runs beyond 2030. The first five years focus on about 5 000 km of lines and substantial transformer capacity to unlock about 30 GW of new generation. With the capital budget secured for this period, the NTCSA has moved into execution, Bala averred. He noted that delivery will combine NTCSA's own investment, engineering, procurement and construction packages and independent transmission projects, engendering multiple entry points for private capital. Bala pointed out that the NTCSA does not have the capacity to fully execute the new lines and needs to plug the gap, adding that the conference in Beijing is a "critical engagement" to help meet the R134-billion investment target. He posited that Chinese capital, technology, delivery capability and long-term partnership are crucial to achieve the required pace and scale. Bala highlighted a "strategic participation" opportunity for Chinese partners, that moves beyond mere equipment supply and spans the entire value chain. This includes equity and project investment, EPC and project delivery, equipment and technology supply with localisation, manufacturing and localisation, financing partnerships and long-term partnerships. He noted that, with South Africa having invested very little in transmission infrastructure in the last decade and a half, this capacity needs to be rebuilt, and Chinese expertise would supplement what the country already has. Mor...

  7. Aug 3

    Seriti unpacks big renewables ambition for coal heartland as first 155 MW wind project enters into operation

    The first 25 turbines at Seriti Green's Ummbila Emoyeni Wind Farm, which is rising in the coal heartland of Mpumalanga within site of the giant Secunda coal-to-liquids complex and in close proximity to three Eskom power stations, have officially entered commercial operation. The milestone was commemorated at a ceremony presided over by President Cyril Ramaphosa on July 31, and represents the first 155 MW phase of a planned 900 MW renewable energy roll-out by Seriti Green in the province, with construction on the first project having begun in April 2023. Seriti Resources CEO Mike Teke, who is also Seriti Green's chairperson, rejected the notion that the renewables investment represents "green washing" by a company built on coal mining, and whose mines are one of the anchor customers for the electricity arising from the wind farm. Power purchase agreements (PPAs), he noted, had also been signed with energy traders Energy Exchange, NOA and most recently Etana Energy, which initialled a PPA at the ceremony. Instead, Teke reiterated his stance that the investment signified the group's goal of being an "energy company" that would invest in wind, solar and battery energy storage, while continuing to produce coal, including from its new Naudesbank Colliery which had a 20-year life-of-mine. To date, Seriti had invested R15-billion in the wind project, in which Standard Bank and Rand Merchant Bank have also taken equity, and it signed a new agreement with Standard Bank for a further R10-billion in investment, raising the overall investment commitment to R25-billion. It also concluded another engineering procurement and construction contract with Chinese turbine supplier Goldwind, which had already installed 48 turbines on the site, of which 25 were operating. Seriti Green also had agreements in place with construction group Stefanutti Stocks and Tractionel, which Seriti credited for delivering the key R1.2-billion main transmission substation (needed to connect the wind farms to the grid and which had been delivered to the National Transmission Company South Africa) in an impressive 17 months. "Across the road from where we stand today, we are planning a further 600 MW of wind energy development," Seriti Green CEO Peter Venn enthused during a speech at the company's new Mpumalanga Office in Bethal that is also its remote operations and training centre. The office is in close proximity to the wind farm sites on farms, several of which continue to produce maize and rear livestock, in Bethal, Davel and Morgenzon. The English translation of the isiZulu name 'Ummbila Emoyeni' is 'maize in the air'. "Together with Ummbila Emoyeni, Phefumula Emoyeni will create one of the largest renewable-energy precincts in Southern Africa, all 187 turbines," Venn added, indicating that it was likely to invest a total of R40-billion in renewables in Mpumalanga. Plans were already advancing for a solar PV project on land rehabilitated by Middelburg Mine Services in partnership with Eskom Green alongside the utility's Duvha power station, and investigations were under way into battery energy storage systems. Venn also linked the project directly to government's ongoing 'Just Energy Transition' objectives, noting that 2 100 employees had contributed to the renewables project to date, including many individuals drawn from the coal industry. "We have amazing skills in the coal sector – all we need to do is cross skill them into the language of wind energy. "These skills are totally transferable, so I'm very comfortable that, with the support of government, we can deploy 10 000 construction jobs in the renewable-energy sector for the next decade," Venn concluded.

  8. Jul 31

    Anthem optimistic 420 MW Northern Cluster of wind projects will enter into operation before year-end

    The giant 420 MW Northern Cluster, comprising three large wind farms under construction in the Karoo, is still anticipated to enter into commercial operation before the end of 2026, despite unprecedented recent rainfall in the region that affected site activity. The three 140-MW-apiece projects, known as Khangela, Umsinde and Ishwati Emoyeni, are being built by South African independent power producer Anthem and co-shareholder Reatile Renewables. Located across several farms near the Karoo towns of Murraysburg and Richmond on the border between the Western and Northern Cape provinces, the wind farms involve a combined investment of almost R15-billion. This includes a shared main transmission substation (MTS) and some 70 km of self-build 132 kV powerlines to facilitate wheeling through the national grid. The project has created over 1 400 jobs in construction and will create over 50 jobs in operations. It will invest many millions into local area development projects over the next 20 years. All three projects are anchored by commercial and industrial (C&I) power purchase agreements (PPAs) of between 20 and 25 years that were concluded with private offtakers in 2024. The electricity to be produced from Khangela is contracted to Richards Bay Minerals, of KwaZulu-Natal, while precious metals miner Sibanye-Stillwater has signed a PPA for the electricity arising from Umsinde. Electricity producer and trader NOA has contracted to purchase the electricity arising from the Ishwati wind farm. Anthem CEO James Cumming tells Engineering News that he is optimistic that commercial operation dates in the fourth quarter of 2026 remain within reach, despite a force majeure declaration by the contractors following heavy rains between February and June this year. The Khangela and Umsinde facilities are expected to begin producing first, having advanced to financial close in May of 2024, whereas Ishwati achieved the milestone in September of the same year. 96 TURBINES, OVER 1 000 TRUCK MOVEMENTS Original-equipment manufacturer Vestas is supplying 96 V163 turbines, rated at 4.5 MW each, across all three projects, while South African construction group Raubex has been contracted for the civil and electrical works associated with the balance of plant. All turbine towers were procured locally from GRI's manufacturing facility in Atlantis, Western Cape. The logistics for the project were significant, with well over 1 000 truck movements involved in getting the massive turbine equipment to site after their delivery to the Port of Ngqura, in the Eastern Cape. An exercise that led to some frustrating road congestion at times. The shared Gamma B MTS has been built by a joint venture comprising South African companies Adenco Construction and CSV Construction to specifications set by the National Transmission Company South Africa (NTCSA), which has already taken over the facility. The substation includes 400 kV and 132 kV infrastructure, a 500 MVA transformer, and provision for future feeders and transformers, and Cumming says it has been a distinguishing feature of the Northern Cluster, as it was the first MTS project undertaken by Anthem. This inaugural MTS project is viewed as an important learning for Anthem, which is now building another MTS in the Free State for its 475 MW Notsi PV project, and expects to begin construction on another later this year or in early 2027. Gamma B was energised in early 2026, which represented a key milestone in eventually connecting the wind projects to the NTCSA network. The fact that the offtakers are all commercial businesses has also been a significant feature of the development for Anthem, given that African Clean Energy Developments and EIMS Africa, which merged to form Anthem in 2025, were major participants in government's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Cumming says that while there are many similarities between public and private procurement and that it remains sup...

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Engineering News Online provides real time news reportage through originated written, video & audio material. Now you can listen to the top three articles on Engineering News at the end of each day.

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