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February 2011 PRICE R60-00 FEBRUARY 2011 Picture by Chief Photographer Duane Daws Picture Supplement FEBRUARY 25, 2011 Rockwell Diamonds, Ventersdorp, Tirisano project PROJECT INDEX INDUSTRIAL PROJECTS 3 Gold 35 Electricity 4 Anglogold Ashanti’s Mponeng Below 120 Level Eskom’s Arnot capacity increase project 5 Phase 2 project 36 Eskom’s Ingula pumped-storage scheme 6 Gold Fields’ South Deep gold mine expansion 37 Eskom’s Kusile power plant project 7 Great Basin Gold’s Burnstone gold project 38 Eskom’s Medupi power station project 8 Rangold Resources’ Tongon gold project 39 Mmamabula energy project 10 Witwatersrand Consolidated Gold Resources’ Renewable energy feed-in tariff programme 11 Bloemhoek gold project 40 Green Building Property Development 12 Iron-ore 41 Absa Towers West office development 13 Assmang’s Khumani iron-ore expansion project 42 Menlyn Maine city precinct 14 Kumba Iron Ore’s Kolomela iron-ore project 44 Iron Mineral Beneficiation Services’ iron fines project 45 Petrochemicals, Oil and Gas 15 PetroSA’s Project Mthombo 16 Other mining sectors 46 Kalagadi Manganese project 47 Transport and Logistics 18 Norilsk Nickel and African Rainbow Minerals’ South African Roads Agency Limited’s Gauteng Nkomati nickel mine phase 2 large-scale mining Freeway Improvement Project 19 expansion project 48 The Gauteng Provincial Government’s Gautrain rapid rail link 20 Platinum 49 Transnet’s new multiproduct pipeline 21 Anglo Platinum’s Thembelani shaft 2 platinum project 50 Anglo Platinum’s Twickenham project 51 Water and Sanitation 22 Anglo Platinum’s Unki platinum mine and eThekwini water and sanitation projects 23 processing plant 52 Trans-Caledon Tunnel Authority’s Olifants River Water Impala Platinum’s No 16 Shaft project 54 Resources Development Project phase 2 24 Impala Platinum’s No 17 Shaft project 55 Impala Platinum’s No 20 Shaft project 57 Platmin’s Pilanesberg platinum mine 58 MINING PROJECTS 25 Royal Bafokeng Platinum and Anglo Platinum’s Coal 26 Styldrift Merensky phase 1 project 59 BHP Billiton and Xstrata’s Douglas-Middelburg Western Bushveld Joint Venture’s Project 1 60 optimisation project 27 Zimplat’s Ngezi platinum mine expansion project 61 Exxaro Resources’ Grootegeluk Medupi expansion project 28 Uranium 62 Riversdale Mining’s Benga coal project 30 AngloGold Ashanti’s Vaal River South Uranium Riversdale Mining’s Zambeze coal project 31 recovery expansion/upgrade project 63 Sasol’s Thubelisha coal mine project 32 First Uranium’s Mine Waste Solutions tailings recovery project 64 Diamonds 33 Debswana’s Cut-8 project 34 1 Projects in Progress 2011 R846BN SPENDING PLAN Concrete examples of the long-promised alignment between the infrastructure development plans of South Africa’s State-owned enterprises and the government’s job- and industry-creation aspirations are emerging. As this Projects In Progress publication goes to print, South Africa’s Infrastructure Development Cluster chairperson and Transport Minister Sibusiso Ndebele, together with Economic Development Minister Ebrahim Patel, are collectively seeking to maximise the job-creation and industrialisation opportunities from South Africa’s latest R846-billion infrastructure investment programme aimed at boosting electricity, transport and water infrastructure. While South Africa often battles to implement it capital expenditure plans, this time around the Cabinet’s Infrastructure Development Cluster has made it clear that the country cannot afford any delays. The cluster is strident on the need for a spirited execution across a broad front. Simultaneously in the region, the Southern African Development Community (SADC) secretariat has started work on an infrastructure development master plan to deal with an estimated $100-billion deficit in Southern Africa’s roads, railways, ports and inland waterways, power, communications and water infrastructure. The SADC is taking steps to strengthen the financial capacity of regional institutions to undertake regional infrastructure projects, through establishing a project prepara- tion and development facility, aimed at taking projects to bankable level. Deputy executive secretary for regional integration João Caholo reports the plan will involve private sector funding and partnerships to alleviate public financing constraints. While African governments are increasingly keen on public-private partnerships, there are also independent power producers with a combined generation capacity of 3 000 MW, as well as private-sector companies with port, airport and toll road concessions. World Bank Institute vice-president Dr Sanjay Pradhan reports that the infrastruc- ture deficits in 24 African countries are reducing yearly potential growth rates by up to two percentage points and reducing productivity by 40%. Pradhan adds that a “new frontier” for development practitioners has been created with the backing of the African Capacity Building Foundation, the Development Bank of South Africa, the German Agency for International Cooperation, the SADC Development Finance Resource Centre, South Africa’s National Treasury and the World Bank Institute. Back in South Africa, the rail and road overhaul alone will take up more than half of the R846-billion capital expenditure plan. The initial road maintenance budget is R75-billion, with R93-billion for commuter rail services and R260-billion to R300-billion for the long-distance rail service, Shosholoza Meyl. All this is set to underpin ongoing project development across a broad infrastructural front and across extensive regional geography. Martin Creamer Publishing Editor Projects in Progress 2011 The material contained in this report was compiled by Sheila Barradas (mining projects) and Lindiwe Molekoa (engineering projects) and the Research Unit of Creamer Media (Pty) Ltd, based in Johannesburg, South Africa. The information contained in this report has been compiled from sources believed to be reliable, but no warranty is made to the accuracy of such information. © Copyright Creamer Media (Pty) Ltd Projects in Progress 2011 2 INDUSTRIAL PROJECTS Electricity Green Building Property Development Petrochemicals, Oil and Gas Transport and Logistics Media Creamer Source: Water and Sanitation Source: Creamer Media Creamer Source: 3 Projects in Progress 2011 Electricity South Africa’s State-owned power utility Eskom has warned the nation that the security of power supply will remain under pressure in the next two years, until the introduction of the first of its new capacity projects, either in late 2012 or early 2013. The new generation capacity programme is planned to add 13 000 MW of new energy to cater for rising electricity demand, and includes coal-fired, base-load power stations; the return-to-service power stations; the introduction of independent power producers (IPPs) and the deployment of renewable energy solutions. The contribution of IPPs can be expected to materialise through the implementation of the renewable energy feed-in-tariff (Refit) programme, which is targeting 1 025 MW of renewable energy, by December 2013. The Refit programme, under the stewardship of the National Energy Regulator of South Africa, proposes to generate power mainly from solar, wind, landfill gas, biomass, biogas and small-scale hydro projects. This will account for 4% of the estimated electricity demand by 2013. Projects in Progress 2011 4 ELECTRICITY Eskom’s Arnot capacity increase project Name and Location Arnot capacity increase project, Mpumalanga, South Africa. Project Description The project involves the extensive refurbishment of the Arnot power station, located 50 km east of Middelburg, to meet the increasing demand for power in South Africa. Arnot has six 350 MW units, making up a total installed capacity of 2 100 MW. The aim is to increase the capacity by 300 MW, while at the same time extending the station’s lifetime. Value The project is valued at R1,48-billion. The sedimentation plant turnkey contract is valued at about R20-million. Duration The sedimentation plant contract was awarded in December 2006, and commissioned in December 2007. The handover to Eskom took place in December 2008, following a 12-month defects warranty period. The planned completion date for the last unit was November 30, 2010. Client Eskom. Key Contract and Suppliers Actom (upgrade of turbines and boilers); Howden (fans), Sulz- er (upgrade of existing pumps); VWS Envig (cooling water-treat- ment plant and sedimentation plant); Veolia Water (sedimentation plant system development); Alstom (retrofit contract); Process Consultants through Refraline (ceramite burners); Steinmuller Engineering Services (engineering services). Latest Developments In 2010 VWS Envig, a wholly owned subsidiary of Veolia Water, has completed the sedimentation plant turnkey project for the power station. The plant will remove sedimentation from blowdown water created in the station’s cooling towers. On Budget and on Time? Yes. Contact Details for Project Information Eskom, tel +27 11 800 3304/3309/3343/3378, fax +27 11 800 3805 or email [email protected]; or Eskom spokesperson Hilary Joffe, tel +27 11 800 6993 or cell +27 79 697 9374. 5 Projects in Progress 2011 ELECTRICITY Eskom’s Ingula pumped-storage scheme supervision); Murray & Roberts (exploratory tunnel); Grinaker- LTA (access roads); CMC Mavundla, a CMC di Ravenna and PG Name and Location Mavundla JV (main access tunnel); Afriscan (water supply, sewage Ingula pumped-storage scheme project, on the border between treatment, small access roads and building of temporary Eskom the Free State
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