“The Coega Development Corporation (CDC) is at different levels of negotiations with a 'basket' of investors, representing R38-billion worth of investment. If they all come, they will consume 70% of the 6 500-ha core development area,” said CDC executive manager for infrastructure development Kelly Byrne.

Byrne is also the acting executive for enterprise development, which is responsible for investment promotion.

“Sites have been earmarked and allocated within the negotiation process to about 38 industrialists in the zone, and they are currently in the project pipeline we are working on.”

The pipeline contains over 40 potential investments that are in negotiation with the enterprise development business unit.

“Negotiations are, by their nature, a slow process. Coega is a long-term project. If we benchmark ourselves against similar developments in South Africa and abroad, we are doing well in attracting such a high level of interest so early in the project,” Byrne stated.

A decision is also expected soon on investments in an aluminium smelter and a ferronickel plant.

“Both will bring a number of downstream industries with them. Coega will undoubtedly get an aluminium smelter. There are other investors interested in the Coega smelter site, in addition to Alcan, although Alcan has the first option on the site,” he added.

Four investors are interested in building plants in the ferro-metals cluster. With the basic infrastructure now in place, the CDC is in a stronger position to conclude the deals, explained Byrne.

“We have demonstrated that we are able to deliver infrastructure on time and on budget. We also now have a prepared site on the east bank of the Coega river and we are ready to negotiate.”

Negotiations for a nickel smelter were given a boost during a visit by a CDC delegation to New Caledonia. Following the visit, a memorandum of understanding with all the major participants involved in the construction of a ferronickel smelter will be in place by early next year.

“Excellent progress has been made - we have spoken to everyone who is anyone in nickel. We are looking at a number of ore suppliers ensuring a good geographical spread, and reducing the risk associated with long-term supply,” Byrne added.

A recent IBM Plant Location International study identified the Coega IDZ as a highly-competitive location, in global terms, for ferrous-metal smelters.