The Democratic Alliance in Limpopo will call for an urgent meeting of the Limpopo Legislature’s Portfolio Committee on Economic Development, Environment and Tourism to consider a series of deeply concerning developments that point to the further unravelling of the Musina-Makhado Special Economic Zone (MMSEZ) — a project that has yet to be fully established or operationalised.
- It has been confirmed that the services of the designated operator for the MMSEZ — Shenzhen Hoi Mor Resources Holding Company — have been terminated.
This is no small development. The MMSEZ was to be the first SEZ in South Africa to be developed and operated (in part) by a foreign company. Shenzhen Hoi Mor was appointed under a permit issued in terms of the Special Economic Zones Act, 2014 to act as the operator for the energy and metallurgical cluster of the zone through its subsidiary, the South African Energy Metallurgical Base (SAEMB).
Under the Act, an “operator” is central to the management, development and promotion of an SEZ. Shenzhen Hoi Mor had also committed to investing approximately USD 3.8 billion in the project.
The people of Limpopo deserve to know why this permit was withdrawn and what this means for the future viability of the project.
- It has also emerged — through an Environmental Impact Assessment notice published by Kinetic Mining Development (Pty) Ltd — that the proposed Coking Coal Plant, a critical component of the planned ferrochrome smelter, is now intended to be developed outside the SEZ boundaries.
Until now, the plant had always formed part of the official SEZ layout. Two farms earmarked for the facility lie directly below Nzhelele Dam on the Mutumba River. By locating the project outside the zone, it forfeits tax incentives, subsidies and other SEZ-linked benefits.
This raises serious questions. Is this decision driven by water constraints, or is it a political strategy to distance the project from the mounting controversies around the MMSEZ?
- Adding to the uncertainty, an investigative report by Daily Maverick revealed that the air pollution impact of the MMSEZ was underestimated by up to 87.5%, with potential effects nine times greater than stated.
These flawed projections compromise the integrity of the Environmental Impact Assessment and amplify concerns about the health risks and environmental burdens the project poses to surrounding communities.
The public should not be hoodwinked — especially not when it comes to their health.
- Although the MMSEZ previously claimed that plans for a coal-fired power station at Musina had been scrapped in favour of renewable energy alternatives, including solar, Eskom is now reportedly considering supplying 1,000 MW of electricity to the proposed smelter.
This is roughly equivalent to one full stage of load shedding. At a time when domestic smelters have been mothballed due to soaring energy prices.
The DA has consistently maintained that the MMSEZ was ill-conceived from the outset – and that other more suitable and sustainable options are readily available commensurate with the environmental, historical, and cultural heritage of this special region of the Vhembe District .
These latest developments confirm our concerns and highlight the urgent need for full transparency from government and its implementing agencies. Limpopo deserves credible, sustainable and inclusive economic alternatives — not a project shrouded in uncertainty and controversy.