Northern Cape Metals Industrial Cluster

The Northern Cape Metals Industrial Cluster (“NCMIC” or “Cluster”) is an initiative of the Northern Cape Department of Economic Development and Tourism. It commenced with a feasibility study and is now in its implementation phase.

The project is situated in Kuruman, within the John Taolo Gaetswe District along the N14 road, approximately south east of Kuruman, near the Country Club turn-off.

Bird’s Eye View Illustration (Source NCMIC Master Plan]
The following table outlines key milestones in the establishment of the NCMIC:
YearMonthEvent
2013September
  • Completion of Feasibility Study for the establishment of a mineral beneficiation cluster in the Northern Cape.
2014April
  • Identification of Kuruman as the location for the Cluster.
2014August
  • Ga-Segonyana Municipality passes a Council Resolution confirming the allocation of 50 hectares for use by the NCMIC.
2015October
  • Convening of stakeholder conference in Kuruman to promote the proposed Metals Industrial Cluster: Four (4) businesses confirm interest in joining the Cluster, viz. African Steel Holdings (ASH) Northern Cape, Carbon Reduction Technologies (CRT) Lighting, Rekgone Metals, and the Eldorado Business and Conference Centre.
2016November
  • Development of business plans for the member firms and a business plan and operational plan for the Cluster Management Company.
2016December
  • Environmental impact assessment completed.
2016November
  • Traffic assessment completed.
2017February
  • First Executive Committee meeting convened.
2017February
  • Registration of the NCMIC as a Non-Profit Company (NPC).
  • Completion of related documentation (MOI) and registrations (e.g. income tax).
  • Opening of the NCMIC bank account.
2017May
  • Approval of funding for the NCMIC from the Northern Cape Department of Economic Development and Tourism.
2017July
  • Various technical studies are commissioned.
2017August
  • Cluster brand and branding material developed, to support initial marketing.
2017September
  • Topographical survey and engineering report (including a bulk services study) completed.
2017October
  • Site development plan completed.
  • Engagements with various stakeholders [from August to November].
2017November
  • Concept design for the Cluster, including 7 buildings for phase 1.
  • Conceptual building plans for 3 member firms.

 

Project description

The NCMIC Project is anchored around steel manufacturing, while allowing for other related industries to be located in the Cluster. The Cluster has been incorporated as a non-profit company, operating under the leadership of an Executive Committee. The NCMIC was initiated as part of the drive by the Northern Cape Department of Economic Development and Tourism to promote metals manufacturing and related industries in the province.

The Cluster is just short of 60 football fields in size, and is located along the N14, approximately south east of Kuruman, near the Country Club turn-off. The NCMIC falls within the jurisdiction of the Ga-Segonyana Local Municipality and within the greater John Taolo Gaetsewe District Municipality in the Northern Cape Province.

The Cluster will be fully established through a development of four phases. Phase 1 is currently under development.

Location [Source: NCMIC]
The Cluster allows for the inclusion of Small-to-Medium Enterprises (SME) and Small, Medium to Micro Enterprises (SMME) with an increasing number of larger enterprises over time. The NCMIC will ensure synergies are created among the Cluster participants, which will ultimately benefit the surrounding communities through increased job opportunities. There are currently 6 entities which have been approved to establish operations in the NCMIC.

Incentives on offer to Cluster Member Firms (Cluster Members) include shared infrastructure, facilities, and services, as well as access to funding. Shared infrastructure will include a common boundary fence, security checkpoint, utility connection points and road infrastructure within the Cluster.

Cluster Members will have access to shared manufacturing and warehousing facilities (e.g. machining and design facilities, and a shared warehouse) as well as to supporting facilities (e.g. onsite canteen, banking agencies, and a recreational centre). Cluster Members will also have access to shared services (e.g. wireless network, marketing and linkages).

The Cluster will include an Incubation Centre for SMME development, and this will be supplemented by the existence of a Skills Development Centre.

Apart from the industrial activities in the Cluster, other business-related opportunities are planned for SMMEs and local businesses, such as Security Services to the Cluster, Gardening Services, a Restaurant/Coffee Shop, Conference Facilities, opportunities during the Construction Phase, Courier and Postal Services, Waste Management and Recycling, etc.

Metals Cluster – Land Use Information [Supplied: NCMIC]
Targeted sectors

  • The main project sector is Metals Manufacturing.
Investment value
  • The total value of the project is R591-million
Number of jobs to be crated
  • A total number of jobs to be created (direct and indirect/construction phase): 27,000
Project Finance
  • The main project funders include the private sector and government. The municipality will provide various incentives as part of the project support. Public sector funding sought includes funding from the DTI, DBSA and SEDA

Project status

  • Project feasibility and business case completed.
Partnerships

The Department of Economic Development and Tourism is the principal owner of the NCMIC Project. The Ga-Segonyana Local Municipality is integrally involved in the project. Other stakeholders include the DTI, SEDA, and private sector member firms.

Opportunities

To discuss opportunities in the Northern Cape Metals Industrial Cluster, please contact:

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Additional resource:

https://sahris.sahra.org.za/cases/metals-industrial-cluster-near-kuruman