Minister Parks Tau: Fetakgomo-Tubatse Special Economic Zone

Ladies and Gentlemen

Our country is among the world's most richly endowed mineral economies. We possess globally significant reserves of platinum group metals, chrome, manganese, vanadium, titanium, iron ore, fluorspar, zirconium, rare earth elements and an expanding portfolio of battery minerals. Yet despite more than a century of mining, our economy continues to export substantial volumes of raw and semi-processed minerals while importing many of the finished products manufactured from those same resources. This paradox has shaped our economic history.

For generations, wealth has been taken out of this land. For too long, the value left with the ore, the processing happened elsewhere, and the skilled jobs were created elsewhere. It is for this reason we must ensure that Fetakgomo-Tubatse delivers the desired R52.6 billion investment pipeline. This pipeline is projected to support around 8,000 jobs in the short to medium term and potentially 20,000 jobs over a ten-year period.

 What have we colective done thus far?

The Fetakgomo-Tubatse SEZ has already achieved important regulatory and infrastructure milestones. Township establishment has been approved, and the Zone has obtained its environmental authorisation in the form of a Record of Decision. Phase 1 infrastructure development, covering approximately 75 hectares, has commenced. Site clearance has been completed, perimeter fencing is reported to be 95% complete, and construction of the guardhouses is approximately 65% complete.

Institutional arrangements are also progressing. A quadripartite agreement involving the dtic, Limpopo Provincial Government, Sekhukhune District Municipality and Fetakgomo-Tubatse Local Municipality provides for shared participation, with each sphere holding a 25% interest in the SEZ. Finalisation of the SEZ entity’s Board remains an important priority to ensure effective governance, clear accountability and timely decision-making.

The Zone has received significant commitment from the Limpopo Provincial Government, which is funding operational costs and has committed R445 million towards bulk infrastructure development. The Development Bank of Southern Africa has been appointed to provide project preparation and implementation support, including assistance with an application to the dtic’s SEZ Fund. The next step is to ensure that the funding application is complete, technically sound and aligned with the Fund’s requirements.

Eskom is undertaking detailed design and technical assessment of the electricity infrastructure, supported by a regular steering committee with the SEZ. The bulk water and water-treatment works are at the concept and viability stage, with detailed design targeted for completion by January 2027. Road and stormwater designs have been completed and have received provisional SANRAL approval. These activities must now progress against clear timelines, with dependencies and bottlenecks actively managed.

Benefication must happen

The global economy has fundamentally shifted. Competition for critical minerals is fierce and major economies are using tariffs, subsidies and industrial policy to secure their supply chains, shifting away from traditional and predictable trading arrangements. In that world, a country that only exports raw materials will always be a price-taker. In that world, South Africa must do things differently. Our industrial policy is clear that we must process more of what we mine, and we must manufacture more of what we use. We must also export more of what we manufacture.

Few places make the case for beneficiation better than Steelpoort. This Zone sits between the Lion and Samancor ferrochrome smelters and is surrounded by some of the country's major platinum and chrome operations. It has been planned for exactly this purpose: mineral processing, metal fabrication, manufacturing, renewable energy, and the logistics and services that support them.

Ladies and Gentlemen

I would like us to leave today with a 8-point plan commitment:

1. On governance. The FTSEZ Board must be finalised without further delay. National, provincial, district and local government each hold a 25 percent stake. Shared ownership must mean shared accountability.
2. On infrastructure. Investors will not come without power, water and roads. We need one integrated schedule for electricity, bulk water, roads, stormwater and sanitation, with named owners and clear dates. Delays must be escalated, not tolerated.
3. On funding. The application to the SEZ Fund must be complete and technically sound. The dtic will work with the Zone and the DBSA to get it right.
4. On investor conversion. Each of the nine Phase 1 investors needs a project plan with clear milestones, from approvals to construction to production. We must know what stands in their way, and we must remove it.
5. On reporting. We need one simple dashboard that tracks infrastructure, funding, investment realised, jobs created, local procurement and skills, to ensure that what gets measured, gets done.
6. Mining-house partnership: We must continue to engage mining and smelting companies on commercially viable beneficiation opportunities, local procurement, supplier development and potential anchor-investor arrangements.
7. Skills and community participation: Develop practical partnerships for training, local recruitment, SMME development and the participation of communities in the industrial value chain.
8. Finally, monitoring and reporting: Establish a clear implementation dashboard covering infrastructure delivery, funding, investor milestones, investment realised, jobs created, local procurement and skills development.