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.[1]

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.[2] The project has been referred to as the Power China International Energy Project.[3]

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.[4]

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.[5]

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).[5]

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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