SA PRIVATE SECTOR STANDS WILLING TO ASSIST IN BREWING WATER CRISIS
AFRICAN BUZZ •
SA PRIVATE SECTOR STANDS WILLING TO ASSIST IN BREWING WATER CRISIS
By the Minerals Council South Africa
There ’ s little doubt that there are fundamental flaws in the South African economy . These include the reliable provision of electricity , efficient transport logistics , deteriorating crime and security , and increasingly , water supplies .
While earlier columns have focused on electricity , logistics and crime and security , there is a brewing crisis in water , brought on in some instances by water boards that have been mismanaged and are unable to provide what is arguably the most fundamental of human needs , alongside food and shelter .
Business leaders are pushing hard to have water placed on the list of critical issues the government must address to stabilise society , which is described as largely despondent and alarmed at the deterioration in living standards in failing municipalities and cities as well as at the inability of the security services to make any meaningful headway into reducing the anxiety induced by the levels of crime , corruption and violence .
At the risk of sounding repetitive , the government must embrace the private sector ’ s willingness to meaningfully engage and become involved in resolving the fundamental crises that are besetting our society . There is no malicious intent . Business is aware that it is more critical than ever for all stakeholders to throw their collective weight behind an urgent recovery plan to arrest the decline .
An example , which is not well-known , is the role the Minerals Council and its members in the Northern Cape have played in the Vaal Gamagara Water Supply Scheme , which is a pipeline and series of pumps that extracts water from the Vaal River and pumps it to communities , businesses , mines and farms in the water-scarce Northern Cape . It is a vitally important source of water .
The construction of the Vaal Gamagara Water Supply Scheme was completed in 1968 to provide communities with water and to encourage investment in mining , agriculture and industry in the Northern Cape . The scheme extracts water from the Vaal River near Barkly West and serves the major towns of Postmasburg , Kathu and Hotazel at its northern-most point . The pipeline has aged and needs urgent upgrading and capacity enhancements .
The first phase of the scheme to refurbish the pipeline is complete , replacing an existing 75km of pipe between Roscoe and Blackrock , benefiting about 6 000 households , mines , municipalities , farmers , and Transnet , which operates iron ore and manganese trains from the area to various ports .
Behind the scenes in recent years there was – and still is – a lot of work by mining companies operating in the Northern Cape to maintain and keep the water running as the Sedibeng Water Board ran into financial difficulties and was unable to fulfil its mandate . Sedibeng Water was recently dis-established , and its assets shifted to Bloem Water and Magalies Water , with the Vaal Gamagara scheme now the responsibility of Bloem Water .
The Minerals Council ’ s Northern Cape Mines Leadership Forum is a critical partner for Bloem Water and the Department of Water and Sanitation to ensure water reaches South Africa ’ s driest province and to ensure that the second phase of the refurbishment of the more than 50-year-old pipeline is funded , and that the work is undertaken without disrupting supplies . A key aspect of the talks between the stakeholders is the mining companies ’ continued interventions and funding of emergency work to keep the pipeline functioning .
The Northern Cape Mines Leadership Forum has used R50-million provided by Assmang , ( jointly owned by African Rainbow Minerals and Assore , mining manganese and iron ore in the Northern Cape ) in the last few months , to keep the water supply scheme functional . The mining industry has conducted emergency repairs and routine maintenance of the pipeline and pump stations .
The mining industry consumes about 48 % of the water it is authorised to extract from the system instead of its 59 % allocation . This means there is more water available to supplement the balance of water allocated for municipalities catering for communities , agriculture , businesses , government departments and entities , as well as water user associations .
More than 20 mining companies pay a premium compared to other users for water in the scheme towards a capital raising fee to pay for the multi-billion-rand second phase of the pipeline refurbishment . So far R268-million has been raised from the premium and it is ringfenced for the second phase of the pipeline upgrades , which includes upgrading the 260km pipeline between the Vaal River extraction point and Roscoe near Kathu .
The Vaal Gamagara Water Supply Scheme is designed to deliver 34-million litres of water a day but supplies about 24-million litres . The dewatering of Kumba Iron Ore ’ s Kolomela and Sishen mines adds about 45-million litres to the system daily . The dewatering projects could deliver a total of 57-million litres in coming years .
This water coming from the mines could supply other mining operations with their needs , freeing up potable water for other users in the Northern Cape .
This is a little-known example of how the private sector has stepped to the fore to ensure communities , other users , and its own businesses have not been adversely affected by a failing government entity . It underscores how critically important it is for the private sector to be incorporated in solutions to resolving the constraints preventing inclusive economic growth and job creation .
Business is aware that it is more critical than ever for all stakeholders to throw their collective weight behind an urgent recovery plan to arrest the decline .
www . africanmining . co . za African Mining Publication African Mining African Mining • June 2023 • 5