Water key to wealth building in Limpopo

Abstract

Bulk water infrastructure I n May a Memorandum of Agreement (MoA) was signed between the Department of Water Affairs & Forestry (DWAF) and 23 mining companies involved in exploiting the mineral resources of the Eastern Bushveld complex regarding the R7,4-billion second phase of the Olifants River Water Resources Development Project (ORWRDP). The project involves the construction of the De Hoop Dam on the Steelpoort River to bring much needed bulk water supply infrastructure to the expanding mining sector and around 800 000 people on the Nebo Plateau in Sekhukhune district. The MoA encapsulates the principles of agreement required for the conclusion of water supply agreements with the mines, and provides the necessary secured revenue flow to make the project bankable. The agreement specifically commits the mines to sign off-take agreements with DWAF for all future water requirements on a take-or-pay basis where the mines will pay for their respective costs based on allocated capacity, regardless of water use.

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