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Boom and Bust in the Waterberg a History of Coal Mega Projects

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Boom and Bust in the Waterberg a History of Coal Mega Projects Boom and Bust in the Waterberg A history of coal mega projects Boom and Bust in the Waterberg The groundWork Report 2018 Boom and Bust in the Waterberg A history of coal mega projects The groundWork Report 2018 Boom and Bust in the Waterberg: A history of coal mega projects Written by David Hallowes and Victor Munnik November 2018 ISBN 978-0-620-82627-3 Published by groundWork P O Box 2375, Pietermaritzburg, 3200, South Africa Tel: +27 (0)33 342 5662 Fax: +27 (0)33 342 5665 e-mail: [email protected] Web: www.groundwork.org.za Cover Credit: On the fenceline of Matimba - photograph taken by Elana Greyling. Layout and cover design by Boutique Books Printed and bound by Arrow Print, Pietermaritzburg Acknowledgements Our work was made much easier by the people of the Waterberg. groundWork reports are the result of collective work. We have relied on the knowledge and insights of many people. This report was produced with the participation of Earthlife Africa who have been working in the Waterberg for nearly ten years. Our thanks to Makoma Lekalakala, Thabo Sibeko and Elana Greyling. Thabo local guide and organised the interviews. The Earthlife team’s local knowledge, insightsand Elana and were analysis part of deeply the research informed team our on understanding the field trips andof the Elana Waterberg. was our We had many in-depth conversations with a wide range of people: Jacques Snyman, Claris Dreyer, Malosi Marakalala, Steve Manamela, Astrid Basson, Steven Tibanyane, Andries Mocheko, Francinah Nkosi, Portia Ramachela, James Moloantoa, Lesetja Molokomme, Tebogo Mocheko, Silvia Sebina, Lucy Modiso, Nofasiseni Makhuge, Lucky Lethlora, Emmi Modiso, Salome Modiso, Margaret Molemoge, Caroline Modiso, Magdeline Modiso, Helen Mohlale, Seena Mogwase, Paulina Modiso, Leoni Kruger, Susan Goosen, Piet Goosen, Sihle Baloi, Letta Sekoboane, Francois van den Berg, Willie Loots, Hardus Steenekamp, Danie Steenkamp, Kamatuua Kandorozu, David Radibotseng, Oscar Mnisi, Dries de Ridder, Marc Wegeriff, Cyril Landers, Willem van der Merwe, Hosea Magoai, Steven Magoai, Jeremiah Nkoati, Jacob Molesiwa, Ditiro Jan Majapholo, Rasina Lesenya, Lena Moatse, Maria Moatse, Mmama Thlaka, Salome Mokgonyana, Emily Lebudi, Tsholofelo Matsegoa, Simon Sello Modise, Rina Lesenya, Steve Thibedi, Daniel Letsebe, Trudie Bronkhorst, Thabo Molantoa, Lesiba Molokomme, Ester Greyling, Zach Radipababe, Joe Meyer, Bettie Kgageng, Faeeza Ballim and Richard Holden. Our thanks to all of them for sharing their knowledge and insights. Thanks also to the groundWork team for good support and to Niven Reddy for making the maps. We hope that we have made good use of everyone’s contributions but emphasise that neither they nor Earthlife are responsible for any mistakes that we have made. The mistakes are ours. Acronyms AfDB African Development Bank AQA Air Quality Act BEE Black economic empowerment CCIA Climate change impact assessment Cosatu Congress of South African Trade Unions DEA Department of Environmental Affairs DMR Department of Mineral Resources DWS Department of Water and Sanitation EA Environmental Authorisation ECA Export credit agencies EIA Environmental impact assessment EIUG Energy Intensive Users Group FBC Fluidised bed combustion FGD Flue gas desulphurisation IDC Industrial Development Corporation IDP Integrated Development Plan IMF International Monetary Fund IPP Independent Power Producers IRP Integrated Resource Plan (for electricity) LDF Lephalale Development Forum MCWAP Mokolo-Crocodile Water Augmentation Plan MES Minimum emission standards mg/Nm3 Milligrams per cubic metre Mm3/a Million cubic metres per annum MW Megawatt NUM National Union of Mineworkers Numsa National Union of Metalworkers of South Africa PIC Public Investment Corporation ROM Run of mine SIP Strategic Infrastructure Project Contents Foreword ......................................................................................................................3 Introduction – coal’s last stand .............................................................................7 How mega projects shaped the Waterberg ...............................................................9 Environmental injustice .................................................................................................12 1 Creating an apartheid geography ................................................................. 17 Moving graves .....................................................................................................................17 An ancient history .............................................................................................................21 White farms, black labour .............................................................................................26 An apartheid geography .................................................................................................35 2 Boom One .............................................................................................................. 36 Iscor fears shortage of coking coal ............................................................................37 Iscor secures the coal ......................................................................................................42 Mokolo River and dam ....................................................................................................47 Building Matimba ..............................................................................................................49 Onverwacht and the Ellisras municipality .............................................................53 The late apartheid challenge of Marapong .............................................................54 The boom and the bust ...................................................................................................57 3 Boom Two ............................................................................................................. 62 Iscor breaking up ..............................................................................................................63 The developmental state’s strategic investment .................................................67 The World Bank rescues Medupi................................................................................74 Environment .......................................................................................................................81 Boom town Lephalale ......................................................................................................93 Inside Medupi .................................................................................................................. 103 In the communities........................................................................................................ 108 Bust ...................................................................................................................................... 110 A history of coal mega projects - groundWork - 1 - 4 Boom Three ........................................................................................................123 Sasol’s Mafutha ............................................................................................................... 124 Eskom Coal 3 and 4 ....................................................................................................... 129 The BLIPPs ........................................................................................................................ 140 Boom 3 costs before it starts ..................................................................................... 160 5 Into the climate storm ....................................................................................166 Climate beyond dangerous ........................................................................................ 166 Coal’s last ditch ............................................................................................................... 175 References ...............................................................................................................181 - 2 - groundWork - Boom and Bust in the Waterberg Foreword Foreword Social justice and equity are core aspects of climate-resilient development pathways that aim to limit global warming to 1.5°C … (IPCC, 2018: Summary for Policymakers) The International Panel on Climate Change (IPCC) Special Report: Global Warming of 1.50C leaves you with faint hope even as it waters down its messages. It warns of the urgency of addressing climate change and hope lies in the message that democracy is at the core of getting us out of the dark pit of the so-called realism that avoids real action. Social justice and equity are important in how groundWork understands environmental justice. For us, it is about solidarity and equity. I do not have much faith in politicians taking the IPCC seriously but, even if they do, the report allows them too many loop-holes. They will take them as a free pass for business as usual. So reports such as Boom and Bust in the Waterberg are important. There are no loopholes. It makes it clear: get out of coal, get out of fossil fuels. But more importantly, this will not happen if there is no mobilisation by society, if there is no solidarity between workers and communities, if there are no linkages between the urban and the rural, between those who have and those who do not. In today’s NGO jargon, groundWork researchers Hallowes and Munnik do the unpacking of the region is viewed
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