MMSEZ denies DA's 'collapsing project' allegations

Date: 24 October 2025 By: Andries van Zyl

The Musina Makhado Special Economic Zone (MMSEZ) state-owned-company has rejected a recent media statement by the Democratic Alliance (DA) that the services of the designated operator for the MMSEZ, the Shenzhen Hoi Mor Resources Holding Company (SHM), have been terminated. The DA, however, is sticking to its claims.

The debacle stems from a media statement released by the DA’s Limpopo office on 16 October. In the statement, the DA’s provincial spokesperson for Limpopo Economic Development, the Environment, and Tourism, Jacques Smalle, states categorically that it has been “confirmed” that the services of SHM have been terminated. He goes on to claim that the MMSEZ project is collapsing, citing the termination of the operator permit, the relocation of a key coking-coal plant outside the SEZ (MC Mining’s controversial Makhado Project), serious flaws in the project’s environmental assessments, and Eskom’s reported plan to supply 1,000 MW of power to a proposed ferrochrome smelter by the Kinetic Development Group (who now owns the Makhado Project after buying a 51% stake in MC Mining). He argues these issues expose mismanagement, environmental risks, and a lack of transparency, calling for an urgent legislative probe and sustainable alternatives for Limpopo.

In reaction to the press release, the newspaper compiled a list of questions directed to the spokesperson of the MMSEZ, Mr Shavana Mushwana. The aim of the media enquiry was to obtain clarity on the current status quo of the MMSEZ relating to the alleged termination of SHM’s operator permit.

The newspaper, among others, wanted clarity from Mushwana on whether and why SHM’s operator agreement was terminated, who had authorised it, and when. Further questions addressed the plan and timeline to appoint a new operator, reasons for relocating the proposed coking-coal plant (Makhado Project), and how this affects the project’s costs and feasibility. The newspaper also asked for responses to claims of underestimated air-pollution impacts, the integrity of the EIA process, and clarification on Eskom’s possible 1,000 MW power supply and the apparent shift away from earlier renewable energy commitments from the MMSEZ.

In reply, Mushwana said that the issues the newspaper raised in its questions were complex for a range of reasons and that some related to matters that did not necessarily fall within the privy of the MMSEZ. He was, however, clear on one thing. “The issue that the DA is raising, we do not know where he is getting the information from. The company and other shareholders have not asked us any questions with regard to that,” said Mushwana.

Mushwana went on to explain further: “As you are aware, the MMSEZ SOC is not a self-licensing entity. The issue of licensing falls within the DTIC. I think those are the areas you should be directing your enquiry to,” said Mushwana. He added that he, for one, would like to know what the source of the information was.

The DA’s Jacques Smalle, in turn, defended his media statement, stating that the issue was referred to during a recent meeting of the Office of the Premier. During this meeting, a document was tabled, titled “Portfolio Committee on Public Administration Resolutions,” dated 12 September 2025 and signed by Dr M C A M Sehlapelo (Acting Director-General).

In the document, a progress report on the MMSEZ appears, which states: “The South Site operator has been terminated due to refusal to adhere to the terms of the contract. A process to find a replacement Professional Service Provider has been kick-started. It is envisaged that the approval for the South Site township establishment will be obtained from the Makhado Municipality Planning Tribunal by May 2026.”

Regarding this, Smalle was clear: “We stand by the statement we made.”

The newspaper could find no other reference anywhere about the alleged termination of the MMSEZ “South Site” operator’s services, other than the document supplied by Smalle. He added that the DA’s provincial leader, Lindy Wilson, sat on the portfolio committee mentioned above and had confirmed the information.

In other news this past week regarding MC Mining and the Kinetic Development Group (KDG), the mining company announced the resignation of long-serving non-executive director Brian He Zhen, effective 15 October 2025. He Zhen, who joined the board in 2018, played a key role in securing regulatory approvals for the Makhado Project and facilitating the investment by the KDG. His departure forms part of a governance restructure linked to KDG’s growing involvement in the company.

He will be succeeded by Jianheng (Albert) Deng, a chartered financial analyst with extensive experience in finance, investment, and law. Deng currently serves as chairman of KDG’s South Africa International Logistics and Transportation Company, bringing valuable cross-border management and industry expertise to MC Mining’s board.

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Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.