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Brief Introduction of South Africa Energy Metallurgy Economic Zone

South African Energy and Metallurgical Special Economic Zone (hereinafter referred to as “EMSEZ”) is a state-level energy and metallurgical special economic zone approved by the South African Government in according with the Special Economic Zones Act No. 16 of 2014, and enjoys preferential taxes for special economic zones in South Africa and all the privileges given by the South African Government for encouraging foreign investment. The South African Government has authorized a SEZ Operator Permit to South African Energy and Metallurgical Base Co., Ltd. to develop, operate and manage the EMSEZ.

The EMSEZ is located in the Musina-Makhado Limpopo River Bank area of Limpopo Province, South Africa. Facing with Zimbabwe and Mozambique across a river and connected with those two countries through bridge. The reserve of surrounding large open-cast coking coal mines is over 10 billion tons, and the chromium resources in South Africa account for over 83% of total global chromium resources, while Manganese resources account for more than 81%. The region is abundant with raw material mine resources necessary for stainless steel production, including iron ore, silicon ore, nickel ore, limestone, etc. National railways, highways and power supply lines run through the SEZ, and its distance to the Port of Maputo in Mozambique is 500km. The Limpopo River is 30km away from the project site, and it is an important water source for the SEZ.

One 12,000,000t/a coal washing plant, one 3,000MW thermal power plant, one 3,000,000t/a coking plant, one 3,000,000t/a iron making plant, one 3,000,000t/a stainless steel plant, one 1,000,000t/a FeMn plant, one 3,000,000t/a FeCr plant, 500,000t/a MnSi plant and one 3,000,000t/a limestone plant are to be built in the SEZ. Supporting government administrative service center (industrial and commerce management, customs and taxation service), living area service center (staff dormitory, apartment, hotel, shopping mall, hospital, school, etc.) as well as highway, railway and marine transportation integrated logistics center will be built in the SEZ as well.