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News Article - Mining
ECDC signs partnership with Mintek
Posted on: Friday, 26 July 2002. Article source: Eastern Cape Business News
THE EASTERN CAPE Development Corporation has signed a partnership with the parastatal minerals research organisation Mintek to develop new minerals-based manufacturing facilities in the province. The partnership was formed in an attempt to boost the development of the minerals potential of the Eastern Cape and is expected to help highlight the importance of facilitating economic development and wealth creation. One of the projects under consideration will attract investment of R55-million in the province, and will create 80 direct jobs. Speaking at a signing of a memorandum of agreement between the two parties, ECDC CEO Mcebisi Jonas said the first feasibility study would be of an Electrolytic Manganese Dioxide Plant as part of the greater Algoa Initiative in Port Elizabeth. Electrolytic Manganese Dioxide (EMD) is used in the cathode mixture of high performance dry batteries. Device applications in which miniature manganese dioxide batteries can be used include: calculators, automatic exposure control cameras, some watches and a variety of small toys. The new plant would service both dry and wet-cell battery producers. EMD is used in wet cell batteries by the automotive industry as a substitute for lead. Other projects identified by the ECDC and Mintek include a coal mine, ceramics plants, downstream aluminium industries, a titanium smelter and a ferro nickel plant. A feasibility study will also be carried out for a possible African Glass Beads plant in East London. According to project manager Rob Guest, the project would boost the country's bead industry as the country is wholly reliant on imported beads. "The beads would be made of recycled bottle glass, and the most important thing is that they would, for the first time, be made in South Africa," Guest said. According to Mintek CEO, Paul Jordan, the partnership was also significant for the Minerals and Energy ministry, as minister Phumzile Mlambo Ngcuka had identified the Eastern Cape as a priority area. "This is also a step towards fulfilling her mandate as she had this year put up a challenge to us to identify development project in the province within the minerals industry," he said. Mintek's responsibility in the partnership would be to investigate and determine the potential viability for each project as well as identification of potential investors. The ECDC's role would be to facilitate and secure finance for the projects and provide business planning and business expertise to investors. Jonas said that understanding of pressures in the economy and the role that the manufacturing sector had to play within the economy was very vital for the province's growth. "The manufacturing sector has become the engine of growth in the economy of the Eastern Cape therefore we have to ensure that we strike partnership with organisations that have skills and experience we need, like Mintek," Jonas said. He added that with the help of organisations like Mintek, the province would with the few minerals resources have capability to increase effectiveness in drawing investment. Jonas said the partnership with Mintek would also help in skills transfer from Mintek to local people. Jonas said the minerals would not have to be mined in the province, but that the Eastern Cape was ideally placed for beneficiation.
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