Background
The Fetakgomo-Tubatse SEZ (FTESEZ) is hosted by Fetakgomo & Tubatse. Municipalities in the Sekhukhune District (Limpopo, South Africa) and is located within the Bushveld Igneous complex (Eastern Limb), which hosts the well-known Merensky Reef in the Limpopo Province.
FTSEZ forms part of the South African Government’s SEZ programme which is aiming to enhance the country’s manufacturing and export capabilities and attract foreign direct investment. Anchored in the Limpopo Development Plan (LDP), the FTSEZ is positioned and designed to be a top investment destination for companies seeking to be in the forefront of the green energy “Just Transition”, which includes “support for workers and communities affected by the transition away from coal and enables the creation of quality green jobs” among other things (see more about the partnership in this article).
The priority industries in the FTSEZ will enhance the local manufacturing capacity and contribute to low carbon / green economy, and will offer socio-economic opportunities (for jobs & small businesses), not only to fight climate change, but to enhance energy security and develop local industries in the next 5 to 10 years.
The FTSEZ is being developed through a partnership between the Department of Trade, Industry and Competition (dtic), the Limpopo Provincial Government (LPG), Sekhukhune District Municipality (SDM) and Fetakgomo-Tubatse Municipality (FTM).
THE ROAD AHEAD
The proposed FTSEZ is gearing up to become a centre of excellence for green energy manufacturing, agro-processing and mineral beneficiation. The SEZ is positioned to be a game-changer in shaping and adding momentum to the industrialisation growth path as espoused in the socio-economic recovery plan of Limpopo Province.
It is strategically located in the industrial hub of Steelpoort between two huge mining establishments, the Samancor smelter and the Lion ferrechrome smelter, which are strategic landmarks for the establishment of the SEZ.
The Fetakgomo-Tubatse SEZ will not only play the role of a consumer of hydrogen in the Special Economic Zone but will strive to become a producer of hydrogen and other clean energy technologies. In Limpopo we see the Hydrogen Economy as a potential game-changer to reindustrialise the provincial economy.
For the Fetakgomo-Tubatse SEZ, the Hydrogen Valley platform has the potential to drive the demand for mining inputs supplies, thereby creating an opportunity for large-scale industrialisation for both the manufacturing of mining inputs and the beneficiation of mining outputs.
The efforts which we have put into Fetakgomo-Tubatse SEZ have so far led to us acquiring:
- 1 220 ha of land.
- An EIA process is currently underway.
- The application for a Record of Decision (RoD) process has commenced.
- The SEZ Master Plan (Development Framework) and layout is complete with full infrastructure designs and costs in readiness for infrastructure roll-out.
- 16 companies have shown a keen interest in the SEZ by signing letters of intent (combined investment value of approximately R38-billion).
- Four companies have shown a readiness to locate inside the SEZ by 2022. A due diligence process is underway.
INVESTMENT OPPORTUNITIES IN FETAKGOMO-TUBATSE SEZ
We envisage creating 8 000 jobs in the short term and 20 000 jobs in 10 years. The main objective of this SEZ is to develop a low-carbon green economy which will offer promising opportunities not only to fight climate change, but to enhance energy security and develop local industries.
The strategic aim of the SEZ is to develop a green primary energy supply for localised manufacturing of both upstream and downstream activities of the platinum group metals and chrome value chains.
Our passion in ensuring operational Special Economic Zones within local municipalities as well as working with various private partners is a clear indication that we are committed to “Building better communities together”.
Unique characteristics of the FTSEZ
The main objective of this SEZ is to develop a low carbon / green economy which will offer promising opportunities, not only to fight climate change, but to enhance energy security and develop local industries.
The strategic aim of the SEZ is to develop green primary energy supply to localised manufacturing of both upstream and downstream activities of the PGMs and chrome value chains.
Construction phases of FTSEZ
The Fetakgomo-Tubatse SEZ will cover a total area of 1220 ha of land. Phase 1 consists of 316 ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phase 2 & 3 will be developed in line with market demands and will include:
Renewable energy, heavy industry, additional light industry space, mixed use and residential. Six (6) tenants have already committed to setting up operations for Phase 1 implementation in chrome related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals.
The primary producers of chrome ore and ferrochromium in South Africa
More than 20 PGM mining operations are concentrated in the Sekhukhune District area. PGM mining in South Africa and the location of the proposed FT-SEZ in relation to more than 20 PGM mines concentrated in the Sekhukhune District area.
Reasons for businesses to locate in the FTSEZ:
- Enabling infrastructure and warehouses, Close proximity to mining operations, Carbon Credits, Reduced Carbon Tax, Reliable and low carbon / green energy, Global leadership in production of chrome and huge resources of platinum group metals, Land & Security, State of the art top, infrastructure, Water provision – De Hoop Dam (capacity: 348-million cubic meters), Reliable road and rail network, Distance to ports and borders: Port of Maputo: 380 km, Port of Richards Bay: 600 km and Musina Beitbridge Border Post: 400 km
- FTSEZ will provide a secure business environment and is designing world class manufacturing and logistics platforms that will be positioned to support transportation efficiencies through road, rail and heliport connectivity to ports and border posts.
Identified clusters and investment opportunities
- Manufacturing of hydrogen energy from fuel cells as part of the South African Hydrogen Valleyled by the Department of Science and Technology, Production of solar and biomass energy
- Production and refurbishment of batteries, Development of a platinum refinery, Beneficiation of chrome-related products, Manufacturing of auto-catalysts, Manufacturing and assembly of green energy automotive components and electric vehicles, Manufacturing and assembly of trucking components, Manufacturing and assembly of machinery, equipment and components used in mining operations, Agro-processing, Development of ICT infrastructure
SEZ Incentives
- Vat and Customer Relief, Employment Tax Incentives, Building Allowance, Reduced Corporate Income Tax (15% Corporate Tax), 12i Tax Allowance and Incentives
- One-Stop-Shop Facility
TARGETED COMMODITY CLUSTERS IN THE FETAKGOMO-TUBATSE SEZ
- Agro-processing
- Development of ICT infrastructure
- Mineral Beneficiation
- Chrome, Platinum group metals, iorn ore and magnetite
- Development of platinum refinery
Green Energy
- Production of solar and biomass energy
- Hydrogen energy from fuel cells as part of the South African Hydrogen Valley led by the Department of Science and Innovation
Manufacturing
- Production and refurbishment of batteries
- Auto-catalysts
- Green energy automotive components and electric vehicles (manufacture and assembly)
- Trucking components
- Mining machinery, equipment and components
FTSEZ Implementation Approach
The Tubatse Hydrogen Valley and Mineral Beneficiation Journey
- Phase 1: West of R555: Integrate the 36 ha Mining Integrated Supply Park (MISP), set up top infrastructure, fence and clear 280 ha site.
- Anchor investments: Input manufacturing suppliers and green vehicle components cluster.
- Phase 2: East of R555: Clear site and fence the 980 ha site and provide bulk services and begin housing development.
- Anchor investments: Renewable energy companies, smelter and refinery and chrome products.
- Phase 3: Design and build a logistics hub for export markets. Just-on-time delivery and efficiencies.
- Anchor investments: Logistics Hub Station with a strong 4IR platform.
Construction Phases of FTSEZ
- The Fetakgomo-Tubatse SEZ will cover a total area of 1 220 ha of land. Phase 1 consists of 316 ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phases 2 and 3 will be developed in line with market demands and will include:
- Renewable energy
- Heavy industry
- Additional light industry space
- Mixed use and residential
- More than six tenants have already committed to setting up operations for Phase 1 implementation in chrome-related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals.