In theory the potential looks good

ON PAPER the potential of Coega seems good, according to information released to FTW by the Coega Development Corporation (CDC). Press releases issued this year by CDC boast of the international aluminium giant, Alcan, planning a R20-billion smelter at Coega IDZ; and national oil company PetroSA planning a new R39-bn crude oil refinery. Another is a R3-bn investment in a dual project – developing a manganese mine at Hotazel in the Northen Cape producing 1.5-million tons of manganese ore a year, and a ferro-manganese alloy production facility in Coega (giving it a R1-bn share). The major shareholder is Kalahari Resources. In the start of what CDC felt could prove to be a multi-billion rand stream of investments from India and China, spokesman Ongama Mtimka said that Indian company Afro-Asia Steel had already signed a R75-million project for a steel billets plant at the IDZ – where construction of the first phase could begin in the second half of this year. Meantime, business development manager, Belu Mabandla, said that more than 10 companies from China and India were “eyeing the IDZ to locate their investments” – and, “among the Indian companies, the total value of potential investment projects being negotiated exceeds R16-bn”, and covers the metals and automotive sectors. Chinese investors, he added, are looking at attractive industrial estates for greenfield projects and mergers. “One of the projects being considered for the Coega IDZ is large enough to occupy nearly half the automotive cluster,” said Mabandla, “once all phases have been completed.”