INDUSTRY and agriculture are paying a heavy price for the prevailing drought, collectively footing a bill of more than half-a-billion rand to stay afloat.
Information gathered and collated by the Richards Bay Clean Air Association paints a picture of rising costs and declining production and profits as big business is forced to implement water saving projects.
Added to this is the hard-hitting increase in basic water tariffs.
Agriculture – primarily sugarcane growers – are also hard hit, and this sector alone calculates the revenue loss at close to R222-million, with the consequent decrease of cash filtering into the local economy and communities.
In addition to increased water costs of about R22-million, Foskor projects a production deficit of 2 300 tons per month, which at current sales prices equates to a loss of R203-million for the nine months since Level 4 restrictions were introduced.
Water saving measures, including provision of new equipment and systems, has added close to R18-million to Mondi’s spend, while more than R6-million on extra drought related measures has been incurred by Mpact Operation at the Felixton paper mill.
Figures for a number of other significant water users, including RBCT, Transnet Port Terminals and Transnet National Ports Authority were not available at the time of going to press.
While a comparatively minor user of water, South32 has spent R79-million on a desalination plant and an additional potable water buffer tank to ensure future water security.
Richards Bay Minerals has logged a bill of about R10-million on site water improvement initiatives as well as on costly engineering studies relating to the Tugela Goedertrouw Transfer Scheme (TGS).
On that note, the Department of Water and Sanitation has failed to name the contractor who will undertake the TGS project, despite assurances the procurement process would be completed and the contractor named by 1 November.
This means a delay in site occupation and given the lateness in the year, little chance of the ‘urgent’ project making any meaningful headway before 2017.
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