Musina-Makhado power station

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Musina-Makhado power station, also referred to as the as the Power China International Energy Project, is a proposed 4,600-megawatt (MW) coal-fired power station in the Waterberg area of South Africa.

Location

The map below shows the Waterberg region, the approximate location where the plant would be built.

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Background

Since at least 2014 there has been discussion of a large coal plant in Limpopo through a partnership with China. In November 2014 it was reported provincial state entity Limpopo Economic Development Agency and Chinese corporation Hong Kong Mining Exchange Company had entered into a deal for a R39 billion power station that would supply electricity to plants that processed mineral resources into finished metal products.

In July 2018, Chinese state-owned companies and the South African Government signed a MOU for the development of a proposed US$10 billion metallurgical complex, including a coal power station, in the Musina-Makhado Special Economic Zone (SEZ) in Limpopo province. The SEZ has a reduced corporate tax rate of 15%, instead of 28% for SA companies. Construction is planned for next year. The project has been referred to as the Power China International Energy Project.

In September 2018, the South African government and the Bank of China entered into a trade agreement in which the Chinese will make investments of US$1.1bn (R15bn) in special economic zones and industrial parks in SA. The deal will include the construction of a 4‚600MW coal-fired power plant over six years.

According to press reports, the proposal came as a surprise, as the country's latest Integrated Resource Plan (IRP) does not include any new coal-fired power plants.

Plans for Musina-Makhado Special Economic Zone

According to the Chinese website for the South African Energy and Metallurgical Special Economic Zone (EMSEZ), the park will contain: the 4600 MW coal plant; a coal washing plant (with capacity to process 12 mtpa); a coking plant (3 mtpa); an iron plant (3 mtpa); a stainless steel plant (3 mtpa); a ferro manganese powder plant (1 mtpa); a ferrochrome plant (3 mtpa); and a limestone plant (3 mtpa).

Project Details

• Sponsor: PowerChina
• Parent company: PowerChina
• Location: Waterberg coalfield, Limpopo Province, South Africa
• Coordinates: -24.075, 28.141667 (approximate)
• Status: Announced
• Gross Capacity: 4,600 MW
• Type:
• Projected in service:
• Coal Type: Bituminous
• Coal Source: Waterberg, South Africa
• Source of financing: Bank of China

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