(Ask the Embassy)

Abiel, from Rustenburg, North West writes:

I heard a new China-invested Chrome mineral project was unveiled in my province recently. Is that true? Please tell me a bit more about it.

Press Officer:

It is true, Abiel.

China's JISCO (Jiuquan Iron and Steel Corporation) and its partners from South Africa and Australia has set up a joint venture company named IFM SA (International Ferro Metals Limited South Africa). JISCO is IFM SA's strategic investor whose investment is 34-million US dollars. The company officially opened its Lesedi Chrome Shaft in Madibeng, North West Province on July 19.

Construction of the integrated processing facility of Lesidi Shaft, including the benefication, sintering and palletizing plants and smelter, is 55% completed. IFM SA will produce 26500 tonnes of charge chrome per annum, and will enter the market in the first quarter of 2007.

New project means new jobs. Lesedi project brings investment to SA from the three countries, and brings jobs to the local people. Apart from jobs created during the construction phase, around 1000 workers will be employed locally as normal production begins, while employment opportunities originated therefrom may even reach 4000. This is what we called a win-win cooperation benefiting all parties involved.

As far as I know, Lesedi Shaft is not the only success story of China-SA mineral cooperation. China Iron & Steel Industry & Trade Group Corporation, in collaboration with its South African partner, has been running similar business in Limpopo for almost a decade.