Saldanha Bay possible coal export port.

JOHANNESBURG, Feb 22 (Reuters) - expects to focus its diversification strategy on coal and copper, with a new coal mine envisaged within the next three to four years, head of its coal unit said on Monday.

Mangisi Gule said the growing power demand in the country justified the investment, and said the new mine would most likely be built in the north-eastern Mpumalanga province where the necessary infrastructure was already available.

In the future, the company is also looking to grow in the northern Waterberg region, touted to become South Africa's new coal hub, and in other parts of the continent.

ARM, which is developing all of its coal projects in a joint venture with Xstrata, commissioned the Goedgevonden coal mine late last year, which is expected to produce 6.7 million tonnes of thermal coal per year by 2011.

Of this projected output, 3.2 million tonnes will be exported by 2011, and 2.5 million tonnes is scheduled to be shipped this year.

ARM has been promised its own export allocation of 3.2 million tonnes at the Richards Bay Coal Terminal (RBCT), which is expanding to export up to 91 million tonnes of the mineral from 76 million tonnes.

But bottlenecks on the rail lines to the port have dented confidence in logistics group Transnet and its ability to bring more coal to the port than the 61 million tonnes it managed to rail last year.

Gule said it was likely ARM would only get parts of its export allocation this year, and would seek to export the remaining coal via Xstrata's allowance.

'We would like to get our promised 3.2 million tonnes allocation... but given what Transnet said ... this year we think 1.7 million tonnes (of our own allocation) is more realistic,' he told Reuters after a results presentation.

Separately, Executive Director for Business Development Stompie Shiels said that Transnet had agreed to grant three manganese producers, including ARM, a total rail allocation to Port Elizabeth of 4.4 million tonnes.

He declined to say how much of that would go to ARM, but said that the company would also seek alternative routes via the ports in Durban, Richards Bay and Saldanha Bay.

ARM, which has interests in nickel, coal, iron ore, platinum, chrome and manganese, reported an 80 percent drop in headline earnings per share for the six months to the end of December, owing to lower commodity prices and a strong rand against the U.S. dollar.

(Reporting by Agnieszka Flak) (For more Africa cover visit: http://af.reuters.com -- To comment on this story email: SouthAfrica.Newsroom@reuters.com)

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Darling on the West Coast hosts Adenco 400 race

Competitors hoping to gently ease into a new season will be in for a rude surprise at the Adenco 400, the opening event of this year’s Absa Off Road Championship, in the Western Cape on 19 and 20 March.

The event, again based in Darling on the West Coast, is now in its eight year and the organisers have found new bits to add to an already tough challenge. Over the years the route has undergone various changes but, in keeping with a request from the MSA Off Road Car Racing Commission that events should be technical, this year’s race will be an even tougher challenge.

“Last year we managed to reduce average speeds by a considerable margin and the leading cars completed the course in just under six hours,” said route director Bill Bright from the Cape Peninsula Motorcycle and Car Club. “We have again had great co-operation from landowners and some new bits and pieces have allowed us to introduce some additional hurdles.

“The race will again be run over two 165 kilometre loops, and the changes should reduce speeds. We estimate it will take the lead cars more than six hours to complete the course, and I think we have succeeded in coming up with a route that is both challenging and interesting.”

The Donaldson Prologue on March 19 to determine start positions for the next day’s race will start at 13:30 from the Darling Sports Club. Donaldson Filtration Systems which last year backed the highly successful Donaldson Nissan team, has joined Ford and Toyota as partners with Absa in the off road championship, and will sponsor all eight prologues this season.

The 96 kilometre prologue will provide competitors with an inkling of what they can expect during the race, and will take crews towards Kraalbosdam on the R315 to Yzerfontein. With good grid positions a high priority for race success, Donaldson Prologues this season are going to provide for some hectic racing.

The race on March 20 will start and finish at the Darling Sports Club. The designated service point will also be located at the club with the route again spectator friendly.

“There are plenty of good spectator viewing points along the prologue and race routes,” said Bright. “These are all within easy reach of the start/finish and are accessible via main roads.”
- Credit: MSA Off-Road Racing Commission

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Explosives to break up barge carrier in Jacobs Bay

By Melanie Gosling
Environment Writer

The wreck of the massive barge carrier Margaret, which towers over Jacobs Bay like a block of flats, will be broken up using explosives in a controlled demolition operation that will topple its cargo of smaller barges into the sea.

This is the sad end to what was a brand-new barge carrier when it ran aground on June 24 after the tug towing the vessel lost the tow connection in a storm near Saldanha Bay.

The barge carrier, which stands about eight storeys high, and its cargo of 12 river barges and two floating dry docks, were valued at around e30 million (about R300m). When it went aground, the vessel, which has no engines, was being towed from the shipyard in China where it was built to its owner in Rotterdam.

The Dutch owner spent about R21m trying to salvage the vessel, but got nowhere. After running out of money, he was forced to abandon the Margaret, which then became the responsibility of the South African Maritime Safety Authority (Samsa).

Debbie James of Samsa said on Thursday they were concerned that if they left the Margaret, it would become a safety hazard as the waves would weaken and break up the structure, and so had instructed the salvors Smit Amandla Marine to remove the wreck.

Taxpayers will foot the bill. Any of the barges or dry docks that are saved will be sold by Samsa to defer costs.

Kevin Tate, salvage master at Smit Amandla Marine, said they were not going to blow up the wreck, as had been done with the Jolly Rubino on the Zululand coast.

"This will be a sequential blast to undermine the structure so it will topple. We'll use a total of 125kg of explosives at a time with a 42 millisecond delay in between, so you'll get a ripple effect instead of one massive blast. One big blast would blow out windows but this won't. There will be lots of water and spray and a bit of flame and smoke," Tate said.

On Tuesday the salvage team cut away the wall of the top dry dock, which has to be removed to allow four of the river barges to slide into the sea after the blast. The 91 ton steel wall, which caused a 30m-high splash when it landed, has been towed to Saldanha Bay and sold.

"The top four barges are in good condition and can probably be saved," Tate said.

Preparation work included plugging the dewatering holes in the barges and cutting the fastenings that secure them.

The explosion will take place at the end of the month.

Everyone within 500m of the wreck will be evacuated an hour before the explosion and the access road to Jacobs Bay will be closed three hours before the blast.

Source www.iol.co.za

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$1.2-billion refinery for the West Coast. Saldanha Bay

One of four selected coastal areas in South Africa stands to be home to the world's first integrated pure metals refinery plant producing titanium, zirconium, magnesium and silicon, upon completion of the feasibility study.

Rare Metals Industry is a consortium made up of the multi-billion-rand National Empowerment Fund, the IDC, Magnesium and Metals (a US and Russian consortium) and TJTI, another locally-based company.

The consortium members have jointly invested about R40-million to conclude a pre-feasibility study.

Speaking at the launch of the project in Johannesburg yesterday, RMI's project chairman Donovan Chimhandamba said the $1.2-billion project would create 2800 skilled jobs during its construction phase and in excess of 5000 jobs once the plant becomes operational in 2014.

He said the potential locations for the plant include Saldanha Bay, East London, Port Elizabeth and Richards Bay.

"In addition, a much-needed skills transfer is likely to occur through our Russian partnership, further strengthening South African mining know-how and long-term sustainability," Chimhandamba said.

He said South Africa was best suited for the project as it possessed an "abundance" of mineral resources and because of its ranking as the world's second-largest producer of titanium slag after China.

Chimhandamba said titanium is difficult and expensive to produce, and would be useful in high-technology industries such as aero-space, nuclear and chemical processes. "It is envisaged that at full operational capacity, the plant will produce 50000 tons of magnesium, 15000 tons of titanium, 8000 tons of silicon and 2000 tons of zirconium annually, coupled with some derivative products.

"The other identified importance of the project to South Africa is that it will increase the country's export-earning potential as well as BBBEE participation at an early stage," he said.

Hilton Lazarus, IDC's head of chemical industries said his corporation supported the initiative "because of the strategic nature of beneficiating locally mined minerals as outlined in the National Industrial Policy Framework".

Source http://www.iol.co.za

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Saldanha Bay on South Africa’s west coast is the preferred site for titanium processing plant

Feb. 12 (Bloomberg) -- Rare Metals Industries Ltd., a venture with South African, Russian and U.S. investors, said it may list shares to fund a titanium processing plant costing as much as $1.5 billion.

“It could be an attractive option,” RMI’s Project Chairman, Donovan Chimhandamba, said by phone from Johannesburg today. Chimhandamba also works for the strategic project fund at South Africa’s National Empowerment Fund, one of the partners in the planned titanium project along with the country’s state lender, the Industrial Development Corp. Magnesium and Metals Ltd. and TJTI Ltd. are the other partners.

The plant would use Russian technology to produce titanium, zirconium, magnesium and other metals, Chimhandamba said. A local plant would allow South Africa to export processed metals rather than the raw metals currently shipped by companies including Rio Tinto Plc and Exxaro Resources Ltd., he said.

South Africa’s government is pushing companies to add value to commodities before they’re exported to boost income from the nation’s natural resources. Titanium prices are “exorbitantly high” at the moment as supplies are insufficient to meet demand, according to Chimhandamba.

The investors have committed 50 million rand ($6.5 million) to pay for a prefeasibility study that may be completed in six to eight months, while developing a funding model could take 18 to 36 months, Chimhandamba said. The preferred site for the project is near Saldanha Bay on South Africa’s west coast.

Titanium is increasingly being used in industries such as aerospace and defense because it is “as strong as steel and light as aluminum,” Chimhandamba said.

Source www.bloomberg.com

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21 Million Barrels of crude stored in Saldanha Bay

South Africa is expected to issue a tender offering up to 21 million barrels of crude storage located at its strategic fuel depot at Saldanha Bay in the second-quarter, industry sources said Thursday.

South Africa keeps some of its emergency oil reserves at the location, which also provides commercial storage tanks.

As global energy demand waned with the economic slowdown in 2007-2008, traders pumped tens of millions of barrels of oil into storage, hoping to sell them later at profit.

The trade play worked for many, as they cashed in on the rally in oil prices to a peak over $80 last year from a low of under $33 a barrel. The oil price structure in the market, when barrels for delivery in the future cost more than barrels for delivery soon and known as contango, encouraged the storage play.

The storage was likely to cost around 25 cents per barrel daily, in line with storage costs elsewhere, sources familiar with the terminal’s lease contracts said. That would imply a cost of around $5.25 million per day for the capacity that would be open for competition.

Existing lease holders included Mercuria and U.S.-based Masefield Group, who were recently acquired by European firm Arcadia Petroleum, trade sources said. Current tank holders would not be given preferential treatment once their contract expires, they said.

The crude storage facility at Saldanha Bay consists of six 7.5 million barrel concrete oil storage reservoirs.

Source www.businessday.co.za

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"the race to secure the tanks in the Western Coast would likely draw strong interest from Swiss-based trading firm Mercuria and international oil firms Royal Dutch Shell and the Hess Energy Trading Co, traders said."

Langebaan Downwind dash cancelled, and replaced by “No Ordinary Weekend” sponsored by Resolution.

R15,000 of cash to be won!

The Saldanha Beach Sailing club welcomes PKRA race director as part of the organising team for the up-coming “No Ordinary Weekend” sponsored by Resolution.

Join in the festivities starting at Lagoon Sports on Langebaan main beach this evening from 5pm.

Witness Marc Avella’s world record attempt for a long distance ski, starting from main beach Langebaan at 11H00 as well as parasailing demos for everyone.

Also, kiteboarders and windsurfers from around the county will battle it out ina mixture of slalom racing, long distance and extreme free style kiting from the pro’s.

Come to Club Mykonos Taverna on Saturday eve for a “Dash Thrash” with live entertainment from Nungarin and live on the decks, Ruben Len10 from the Netherlands. Family and friends welcome to join in the fish braai from 18H30.

Source www.gust.co.za

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Abalone House, Paternoster on the Cape West Coast.

Ian and Lise Manley have won the public relations accounts for the annual Riebeek Valley Olive Festival as well as Abalone House, a new five-star boutique guest house in Paternoster on the Cape West Coast.

The Manley’s will represent the Riebeek Valley Olive Festival for both 2010 and 2011. Now in its 10th year, the 2010 Riebeek Valley Olive Festival will be held from 30 April to 2 May. It is undisputedly the largest festival in South Africa devoted to the hallowed olive but is also an opportunity to sample wines, especially the Shiraz varietal from the many established estates as well as local farm produce found in the Riebeek Valley.

Located in the quaint fisherman village of Paternoster, Abalone House, opens this month and boasts 10 magnificent suites, designed around a tranquil, central courtyard. Eight of the rooms have sweeping sea views and many have intimate outdoor relaxation areas. There’s even a rooftop Jacuzzi, with a panoramic sea view, or cool off in the elegant swimming pool, surrounded by a colourful potted garden.

Manley Communications is a Perception Management Consultancy. Under the leadership of Ian and Lise Manley, the company represents luxury hotels, fine-dining restaurants and exclusive wine estates in South Africa.

Source www.travelwires.com

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West Coast Langebaan Lagoon Festival

Get to the West Coast for one of the wildest music festivals in the Cape. Friday’s awesome line-up of performers includes David Fourie, Wicus vd Merwe, Chereè, Wynand Strydom, Die Broers, Lianie May, Snotkop & Band, Watershed and Ray Dylan.

On Saturday Dewald Dippenaar, Anton Botha, Piet Plagiaat, DJ Ossewa, Arno Jordaan, Eden, Jakkie Louw, DR Victor & Rasta Rebels, Juanita, Kurt Darren and Bok van Blerk will be jamming into the early hours. On Sunday Dixie Hillbilly Trio, Freddie Nest, Sasha-lee Davids, Kalahari Orkes, Andries Botha & Nedine Blom, Emo Adams & Band, Bobby van Jaarsveld and Romanz take the stage.

How fast are you? Try your skills at the West Coast Lagoon Festival Kite Surfing Challenge, the Hobie Cat Speed Challenge or Kayak race. Apart from theses races and the array of popular musical acts, there will also be many other fun things on the go as well as lots of kids activities to look forward to.

Need to know? Venue: Club Mykonos Die Fees word aangebied vanaf 26 tot 28 Maart 2010 in Langebaan en benewens gewilde Musieksterre, word ook baie ander tydverdrywe en pret in die vooruitsig gestel!

Source www.africanow.co.za

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www.weskuslagoonfees.co.za

Exxaro aims to sell green power into national grid. Saldanha Bay

MINING group Exxaro was pursuing plans to generate up to 300MW of renewable energy and had already started installing the measuring equipment, a senior manager in the company said on Friday.

Mines depend on a reliable electricity supply in order to operate and expand but Eskom’s supply has been constrained since January 2008, when power rationing began.

However, it seems that Exxaro also has an eye on the opportunity to sell power back into the national grid.

Thomas Garner, growth manager for energy at Exxaro, said the company was installing measuring masts at its proposed 100MW wind farm at Brand- se-baai on the Cape west coast. Measuring equipment would be installed next month at Lephalale in Limpopo, where Exxaro is planning a 200MW concentrated solar power plant .

To assess the site’s suitability, measuring needs to be done over a 12- month period. Garner said Exxaro was also considering “quite a few” co- generation projects — where electricity is produced as a by-product of the industrial process — of which Namaqua Sands, near Saldanha Bay, was likely to come on stream first.

Exxaro is also one of the partners in the R1bn Tsitsikamma wind farm project, which is planned to produce 40MW by 2013, and signed a memorandum of understanding for th e project last year. That project is being developed with the Tsitsikamma Development Trust, Watt Energy and a group of Danish investors.

Garner said Exxaro planned to sell electricity into the national grid.

“We want to sell to the transmission system operator, which we expect will be split out of Eskom . There have been hold-ups with the policy and regulatory framework, but we expect this to be solved in due time .”

News source Business Day

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