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Rachoene strikes R184m road upgrades deal with De Beers

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Limpopo Public Works, Roads and Transport MEC Ernest Rachoene has signed a Memorandum of Agreement with Deer Beers to upgrade gravel roads in Musina and Blouberg.

Source: Suppled




Sizwe sama Yende


Limpopo MEC for Public Works, Roads and Infrastructure, Ernest Rachoene, has signed an R184 million deal with diamond producer De Beers’ Venetia Mine for the upgrade of roads in Musina and Blouberg municipalities.

Rachoene signed the Memorandum of Agreement (MOA) on behalf of state-owned enterprise, Road Agency Limpopo, this week.

This agreement is a major boost to Rachoene’s concerted efforts to upgrade road infrastructure in the largely rural province and create a network that will enable and facilitate economic growth.

The province has 21 000 kilometres network of roads of which 13 000km are gravel. An amount of R320 billion is needed to upgrade these gravel roads.

The department’s annual budget is R5.627 billion – certainly not enough to address this backlog.

According to the MOA, De Beers has committeed R100 million to the D2692 Venetia Mine road towards Musina town. A further R50 million will be spent on the  D1589 Taaibosch Groet in Blouberg Municipality, and R34 million has been allocated towards the upgrading  of Musina internal streets projects.

These three major infrastructure projects across  municipalities, represent a coordinated effort to responding to pressing local needs and development priorities.

Rachoene has emphasised that the partnership was rooted in a shared commitment to job creation, socio-economic development, and inclusive growth.

Rachoene said that while government remained committed to its developmental mandate, innovative collaborations such as this MOA were essential to overcoming fiscal constraints and infrastructure backlogs that have hindered progress in the province.

“This partnership is not about replacing the government's responsibility, but rather about complementing it through shared value and mutual benefit,” he said.

“ It reflects a collective resolve to invest in infrastructure that will unlock economic opportunities and improve access for rural and mining communities. We appeal to all other mines to come on board to assist us. As province we’re struggling in terms of resources,” Rachoene added.

Rachoene said this collaboration marked a turning point in Limpopo’s infrastructure development journey and set a precedent for impactful partnerships that put community needs at the forefront in line with the objective of the District Development Model.

Venetia Mine’s general manager, Ntokozo Ngema, said: “We’ve highlighted agriculture as one of our catalyst to make sure our industries are striving. We want to make sure an agriculturist or a small famer in the areas of Blouberg will be able to transport his products because there will be a road infrastructure to do that.”

Venetia Diamond Mine is South Africa’s largest producer of diamonds since 1995. The mine is situated near Alldays, and is De Beer’s six remaining diamond mines in South Africa and the only major diamond mine to be developed in the country during the past 25 years.

Rachoene indicated in his budget speech that he had strengthened more partnerships with the private that has yielded the following projects:

·  The Steelpoort Bridge in Ga-Malekane, which 82% its funding was provided by the private sector. This bridge is critical link in the Sekhukhune District. It is now 91% complete.

· In Waterberg District, the Northam Platinum mine has committed an investment of R41 million the upgrading of the Road D2357 in the district. 

·  In the Mopani District, Palabora Mining Company contributed R100 million towards two roads in the Ba-Phalaborwa municipal area. RAL contributed R100 milllion.

 

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