The Democratic Alliance (DA) in Limpopo has called for an urgent sitting of the Limpopo Legislature’s Portfolio Committee on Economic Development, Environment and Tourism to probe a series of troubling developments that point to the further unravelling of the Musina-Makhado Special Economic Zone (MMSEZ) — a flagship project that has yet to be fully established or operationalised.
DA Member of the Provincial Legislature and the party’s provincial spokesperson for Economic Development, Environment and Tourism, Jacques Smalle, has confirmed that the services of the designated operator for the MMSEZ — Shenzhen Hoi Mor Resources Holding Company — have been terminated.
“This is no small development, because the MMSEZ was to be the first SEZ in South Africa to be developed and operated (in part) by a foreign company,” said Smalle.
“Shenzhen Hoi Mor was appointed under a permit issued in terms of the Special Economic Zones Act, 2014, to act as the operator for the energy and metallurgical cluster of the zone through its subsidiary, the South African Energy Metallurgical Base (SAEMB).”
Smalle emphasised that under the Act, an operator plays a central role in the management, development, and promotion of a Special Economic Zone. Shenzhen Hoi Mor had also committed to investing approximately USD 3.8 billion in the project.
“The people of Limpopo deserve to know why this permit was withdrawn and what this means for the future viability of the project,” he said.
Critical component developed outside SEZ
The DA provincial leader added that a recent Environmental Impact Assessment (EIA) notice published by Kinetic Mining Development (Pty) Ltd revealed that the proposed Coking Coal Plant — a critical component of the planned ferrochrome smelter — is now intended to be developed outside the SEZ boundaries.
“Until now, the plant had always formed part of the official SEZ layout. Two farms earmarked for the facility lie directly below Nzhelele Dam on the Mutumba River, and by locating the project outside the zone, it forfeits tax incentives, subsidies, and other SEZ-linked benefits,” he explained.
“This raises serious questions. Is this decision driven by water constraints, or is it a political strategy to distance the project from the mounting controversies around the MMSEZ?”
Adding to the uncertainty, Smalle cited an investigative report by the Daily Maverick, which found that the air pollution impact of the MMSEZ was underestimated by up to 87.5%, with potential effects nine times greater than previously stated.
“These flawed projections compromise the integrity of the Environmental Impact Assessment and amplify concerns about the health risks and environmental burdens the project poses to surrounding communities.
The public should not be hoodwinked — especially not when it comes to their health,” Smalle warned.
Renewable energy prioritised
He further elaborated that although MMSEZ officials previously claimed that plans for a coal-fired power station at Musina had been scrapped in favour of renewable energy alternatives, including solar. Eskom is now reportedly considering supplying 1,000 MW of electricity to the proposed smelter.
“This is roughly equivalent to one full stage of load shedding — at a time when domestic smelters have been mothballed due to soaring energy prices,” he said.
Smalle concluded that the DA has long maintained the MMSEZ was ill-conceived from the outset, arguing that more sustainable and context-sensitive options are available that align with the environmental, historical, and cultural heritage of the Vhembe District.
“These latest developments confirm our concerns and highlight the urgent need for full transparency from government and its implementing agencies.
Limpopo deserves credible, sustainable, and inclusive economic alternatives — not a project shrouded in uncertainty and controversy,” he said.
