Donovan Chimhandamba, CEO of NYANZA Light Metals, stated that the company has started building a US$350 million titanium dioxide plant in Richards Bay, South Africa.

Nyanza's world-class chemical and mineral beneficiation complex will mainly produce 80,000 tons of titanium dioxide each year, which is mainly used in the manufacture of industrial coatings, paints, cosmetics, paper, plastics and other food ingredients.

Nyanza is a private joint venture between investors from the governments of Zimbabwe, South Africa and South Africa. The launch of Nyanza Construction is divided into three phases. The first phase began in May 2021 and involved the construction of a technical service center that would produce enough titanium pigments for ongoing customer and product development work. The first phase of the factory has been basically completed and will be put into operation in March 2022

"There are challenges, but we have definitely made progress," Mr. Chimhandamba told CNBC Africa Television last week. We look good, but there are challenges. We obviously feel the damage caused by Covid-19, but I think we look much stronger than before Covid. "

Mr. Chimhandamba said that titanium dioxide pigment is "a white chemical powder used in any color except black.

It provides a white base to make all other colors.

The African Export-Import Bank (Afreximbank) provided US$2 million in project preparation funds, while retaining the role of lead arranger, responsible for coordinating the US$350 million funding provided by all other banks for the second phase of the project.

South Africa, especially KwaZulu Natal province, has rich resources of titanium ore. Although KZN has primary titanium raw materials, South Africa and Africa mainly import 100% value-added titanium related products due to the lack of value-added capabilities locally or on the African continent.

The Nyanza complex covers an area of ​​67 hectares, of which 45 hectares will be fully completed, including large-scale industrial operations including a 15MW solar and steam power plant.

The chemical project will employ more than 1,200 employees during the 30-month construction period, and once it is fully operational, it will employ 550 regular employees.

South Africa imports 100% of high-value titanium dioxide pigments from America, Asia and Europe. The raw materials depend on South Africa and Africa.

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"We see this as an opportunity to create a project that will take advantage of the natural resource endowments of South Africa and KZN and prove that we, as Africans, can create transformative projects and remove the African continent from merely exporting low-value primary raw materials. China has transformed into an exporter of high value-added products,” Mr. Chimdamba said at the KZN Trade and Investment Conference last week.

The South African government promotes the Nyanza project through special incentive measures such as the listing of special economic zones, early project development and preparation incentives, 900 million rand tax relief, etc. through the Ministry of Trade, Industry and Competition, which will enable investors to recover their investment faster and training subsidies To support faster skills transfer and training.

"Projects in the special economic zone will enjoy special income tax benefits, such as the income tax rate of 15% and 28% outside the special economic zone, which will improve financial returns, accelerate depreciation and pre-clearance zones, and a 10% tariff on titanium protects imports Dioxide pigments," said Mr. Chimhandamba, who also led the Diaspora Infrastructure Development Group, which won the tender for the Zimbabwe National Railway in 2017, after which the project was terminated.

Read the original article in the Herald.

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