Nyanza CEO gives update on Richards Bay chemical plant

South Africa has been eagerly anticipating the construction of a multi-billion rand chemical plant in Richards Bay, which is set to boost the country's ability to produce its own chemicals. However, the project has faced challenges due to the country's inconsistent lockdown measures. Donovan Chimhandamba, CEO of Nyanza Light Metals, recently provided an update on the project's status in an interview with CNBC Africa. Chimhandamba acknowledged the hurdles the project has encountered, stating, "We've had challenges, but we have definitely progressed. We stumbled into a waste titanium slag resource 10 years ago and initially expected production to begin around three to four years ago. However, due to factors such as feasibility studies and project division, the timeline has shifted." The CEO explained that the project has been divided into three phases, with the first phase, the technical service center, already in progress at a cost of over $20 million. The next phase, which involves building the main operations, is estimated to cost $350 million and is scheduled to commence in late 2022. Despite the challenges, Chimhandamba reassured stakeholders that the project remains on target, with the necessary financial backing from Aforix and banks secured. He emphasized the strategic importance of the project in reducing South Africa's dependence on exporting raw materials and reimporting value-added products, highlighting the economic potential of domestic production. The CEO also outlined the significance of the technical service center in developing custom paint formulations for clients like Kansai Plascon and Dulux. The technical center serves as the core of the operations, ensuring that the production processes are mastered before full-scale manufacturing begins. A pilot test conducted in New Zealand confirmed the process capabilities, paving the way for the upcoming construction of the main production plant. The CEO projected that commercial production would commence in 2024, with product availability for clients starting as early as March next year. The main production plant, spanning 67 hectares of land, will house various industrial facilities, including titanium dioxide pigment plants, water treatment plants, and waste gas treatment plants. The construction is projected to take 24 months, implying a rigorous schedule to meet the demand for customized paint formulations in the market. By integrating the technical service center and the main plant, Nyanza aims to streamline the production process and ensure timely delivery of high-quality products. It is essential to note that the paint formulations developed by Nyanza play a crucial role in industries such as architectural paint, industrial coatings, plastics, ceramics, and even food ingredients. The CEO highlighted the intricate relationship between the pigment produced by the plant and the unique characteristics it imparts to various products. By providing clients with tailored paint solutions, Nyanza aims to establish itself as a key player in the chemical production sector of South Africa. As the project moves forward, Chimhandamba remains optimistic about the impact it will have on the country's industrial landscape. With a strong focus on innovation, sustainability, and strategic partnerships, Nyanza Light Metals is poised to revolutionize the local chemical manufacturing industry and bolster South Africa's position as a self-sufficient producer of essential chemicals.