Name of the Project
Musina-Makhado Special Economic Zone (MMSEZ) Energy and Metallurgical Cluster.

Location
Vhembe Biosphere Reserve, in Limpopo, South Africa.

Project Owner/s
The Limpopo Economic Development Agency – an agency of the provincial government.

Project Description
The project involves the establishment of an energy and metallurgical industrial park in the MMSEZ.

The SEZ programme is one of the initiatives identified by the South Africa government through the Industrial Policy Action Plan to boost the country’s industrialisation and manufacturing capacity.

The industrial park will include power, coking, ferrochrome, ferromanganese, ferrosilicon, pig iron metallurgy, lime, steel and stainless steel plants.

Potential Job Creation
The project is expected to create about 22 000 jobs.

Capital Expenditure
A consortium, led by Hong Kong Mining Exchange, will invest more than R40-billion in the park.

Planned Start/End Date
The projects will be implemented over five years.

Latest Developments
Civil society organisations Herd Nature Reserve, Centre for Applied Legal Studies and Living Limpopo have approached the Polokwane High Court to review the environmental authorisation granted to the MMSEZ.

The organisations believe the approval process was fatally flawed, saying the provincial government granted itself environmental authorisation while ignoring severe impacts of a “coal-fuelled megaproject” on water security and the climate crisis.

They state that the final environmental-impact assessment (EIA) report, issued in February 2021 by Delta Built Environment Consultants, did not recommend environmental authorisation.

However, the Limpopo provincial government proceeded to appoint another environmental assessment practitioner to issue a revised final EIA in September 2021, which paved the way for government to grant itself authorisation.

The SEZ is projected to generate more than one-billion tons of carbon dioxide emissions over its lifetime, which equates to more than 10% of South Africa’s yearly carbon budget under Paris Agreement commitments.

The civil society organisations agree that the scale of this development has the potential to radically alter the environmental, social and economic landscape of the Vhembe Biosphere Reserve region.

The organisations have reportedly raised numerous concerns about the feasibility and impact of the SEZ on this sensitive region and its vulnerable rural communities; however, they say their efforts to engage meaningfully with government and its agencies sponsoring the project have been futile.

The organisations are asking the court to review and set aside the environmental authorisation before the SEZ is being developed. The review application is supported by two expert reports, which discuss risks pertaining to loss of biodiversity, water supply, pollution and wetland destruction.

According to the organisations, the Vhembe region contains some of the most biodiverse and culturally sensitive areas in the country, including the northern Kruger National Park, the Mapungubwe World Heritage Site and other areas such as the Herd Reserve.

Additionally, the area is already considered water-scarce and should government fail to properly consider spatial development, it could have devastating consequences on water supply.

Ultimately, the project will set back South Africa’s efforts to fight climate change and render the country in breach of its international obligations, the civil society organisations contend.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Limpopo Provincial Government, tel +27 15 287 6000.