South Africa Grid Localisation

By Tshepo Magagane

This could be a good test to see how much Copper value-addition is done in Africa!Remember that currently it is cheaper to bring end-copper products through Durban port from China than it is to bring them from Zambia – something has to change.

1. 14,500km of Transmission lines – will require about 30,000 to 100,000tonnes of Copper.

2. USD300m-1bn (ZAR5-17bn) of spend @USD10k/t

3. NB: I talked about this key point ie Copper absolutely crucial but a small part of the spend – this is against total spend of ZAR440bn ie 1-4%

4. Now if I push Copper to USD30k/t – this goes to 3.5-11% OR a 200% change in Copper prices would change the BoQ by 2-7% – WELL WITHIN THE CONTINGENCY

Maybe not cathodes (they make their way to Durban) – but you cant tell me that Fabrication in Zambia and these then being sent down to SA is not an Economic Case.

Value Addition is not about Mining – it is about Industrial Policy – it is about AfCFTA – let us use this as a case study.