From Creamer Media in Johannesburg, this is the Real Economy Report.

A closed steel complex in Mpumalanga is finding new vigour as an industrial park, by focusing on providing key facilities for specialist services companies.

Production at the Highveld Steel complex, in Mpumalanga was halted after the steel producer was placed into business rescue in April 2015.

However, a business strategy was set in motion to convert the steel complex, into the Highveld Industrial Park and to see the park capitalise on its strategic location and key facilities. 

Highveld Industrial Park CFO Andrew Maralack:

Sashnee Moodley:
Key features at the park include infrastructure, such as electricity and water supply.

The park has a direct, 350 MW mVA supply from State-owned power entity Eskom on the megaflex rate. It also has a direct supply of reasonably-priced raw water supply from the municipality through a dedicated Highveld-owned pipeline.

Other infrastructure includes on-site sewerage facilities and water purification facilities to deliver potable water.

Energy and chemicals group Sasol supplies methane-rich natural gas, while gas producers African Oxygen and Air Liquide, with plants situated on the premises, can supply industrial gas such as oxygen, nitrogen and argon.

Other features for use include canteens, parking, change rooms, a clinic and an accredited training centre.

To date, Highveld Industrial Park has operationalised a 24-month contract manufacturing agreement with steel giant Arcelor Mittal South Africa.  The agreement sees AMSA provide the raw steel and Highveld toll manufactures the final product.

Highveld Industrial Park CFO Andrew Maralack:

Sashnee Moodley:
To date, more than seventeen units at the park have been leased. As of October, 34 units, including offices, warehouses, storage facilities and workshops, remain available.

Highveld’s private rail siding has further been developed as an export terminal for coal with a road-to-rail strategy.

Mokoya Supply Chain Holdings is one of the tenants currently using the rail siding facilities.

Mokoya Supplly Chain Holdings rail operations manager Dirk Odendaal:

Mokoya rail operations manager Dirk Odendaal told Engineering News that use of the facility gave the company a significant opportunity for expansion, as well as assisted in job creation. 

Currently, about 320 trucks enter the Highveld premises daily.

Until August, more than one-million tonnes of sized coal have been handled through the facility since December 2016,

Sashnee Moodley:
Saperi Engineering is another company capitalising on the premises’ offering.

Saperi 54 Engineering MD Blackie Swart:

Sashnee Moodley:
A training centre has also been opened where learners from the local community are being trained with funds sourced from the Construction Seta.

M2 Engineering operations director One Mbokane:

Sashnee Moodley:
Highveld Wind Down COO further explained that Highveld aims to capitalise on its strategic assets.

Highveld Wind Down COO Connie Carelse:

Sashnee Moodley:
Highveld’s flat products mill can produce up 300 000 t of plate and 650 000 t of coil a year.

The park also has a fully equipped vanadium slag crushing plant, which is designed to process vanadium beneficiated from titaniferous ore deposits. A portion of the slag crushing plant is currently rented out as part of the lime facility.

Highveld will also capitalise on three resources, which were historically stockpiled.

Highveld Wind Down COO Connie Carelse:

We have already sold the lime resource, a very high lime material that also contains some metal, which is now being recovered and then the lime is being screened out and the lime they screen out they sell as a product, so that resource is sold.

One of the resources in the process of being sold, is the material stockpiled as part of the vanadium extraction.

Sashnee Moodley:
Selling of the stockpiles has also enabled Highveld to start the Highveld Remediation Trust Fund. The fund will assist the park in remediating the site once the stockpiles have been removed.

Sashnee Moodley:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.