Regulatory wins fast-track R31.5bn coal-to-fertiliser project

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23-04-2025
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Moneyweb
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Mpumalanga plant expected to create thousands of jobs, enhance regional infrastructure, and advance sustainable industrial development in the province.

The R31.5 billion coal-to-fertiliser development by blue ammonia producer Suiso has cleared critical regulatory and environmental hurdles, positioning it for construction.

The Mpumalanga-based Hiryo Plant is anticipated to serve as a major industrial anchor in the region, converting coal feedstock into high-quality fertiliser.

The plant will use coal as feedstock and integrate advanced carbon capture, utilisation, and storage systems to minimise emissions. The captured carbon will be repurposed into valuable by-products, including gypsum and ammonium carbonate, contributing to the agricultural and construction industries.

The project will support 4 000 jobs in the construction phase and around 1 000 jobs in steady state, enhance regional infrastructure, and advance sustainable industrial development in Mpumalanga.

The company says it was notified in early April that the Department of Mineral Resources and Energy had granted Section 102 approval, allowing the development of the Hiryo Plant on land now officially rezoned for industrial use.

Section 102 of the Mineral and Petroleum Resources Development Act governs the amendment of rights, permits, or environmental authorisations.

“The rezoning confirmation, coupled with progress in our environmental approvals, reflects a commitment by both the government and Suiso to ensure the project proceeds with full compliance and transparency,” says Paul Erskine, Suiso founder.

“This is a vital step forward in preparing the site for the construction and operation of the plant,” he adds.

The company says it is working closely with environmental consultants to secure the full suite of licences required under South African environmental law.

These include environmental authorisation and securing waste management, air emission and water use licences.

The authorisation process, initiated in May 2024, has completed several milestones, says the company. These include a financial scoping report and an environmental impact assessment. Draft reports for Hiryo’s environmental management programme will be ready for public review by the beginning of July 2025.

“Specialist site visits for biodiversity, hydrology and other studies are on track for completion this month. Financial reports on these studies are expected by mid-May,” Erskine says, adding that water use licence processes are well underway, with a final decision on water use expected by February 2026.