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Networth through NEWCO has developed an absolute low cost stainless steel production business model that would potentially contribute annual revenues of R32 billion from 2027 increasing to R64 billion by 2030 and R100 billion by 2035 to SA’s GDP by leveraging South Africa’s failed steel plants and ferrochrome and ferromanganese waste arising from processing operations. Phase 1 build cost estimate - R15 billion inclusive of own NGCC power plant.

Strategy:

Efficiently manufacture high quality, low-in-all cost upstream Flat and Long stainless steels to be sold to producers and rerollers worldwide with scrap price as the competitor and the benchmark in the overall context of shortage of stainless steel to meet global demand.

“The future of South Africa’s steel production is in gradually repositioning failed steel plants to support global demand for sustainable materials and in support of the global “Green Agenda’ while maximizing downstream value chain to advance mass job creation”

“Thus, the need to balance the ratio of carbon steel production for local consumption to specialty and stainless steel production for export markets is both urgent and critical”

“South African carbon steel production business model is obsolete and un-sustainable.”

Source: Harold Vermaak - CEO and Founder of Networth Investments.

Experts opinion suggest that South Africa’s economic growth lies in increasing stainless steel production to 3 Mt/a by 2030 as Dr. Nic Barcza (one of the former Presidents of the South African Institute of Mining and Metallurgy, former Mintek executive and a team member to NEWCO project) in 1996 wrote:

“There is little doubt that South Africa's development has been largely built on the almost 50 kt of gold produced over the past .. years. However, it is unlikely that gold will continue to play the same dominant role in the future. The metal most likely to fulfil this role is chromium as an alloying element for stainless and alloy steels, followed very closely by aluminium”.

“Given the necessary investment and market development, there are excellent prospects for stainless steel to overtake gold as the major foreign-exchange earner in the mining and metallurgical industry, …...I hope that this will result from a substantial increase in the output of stainless steel rather than from a dramatic fall in gold revenue. If South Africa could increase its projected stainless-steel production of about 1 Mt/a to 3 Mt/a by 2020, it would increase its share of world production….., and the revenue would reach about 6 billion US dollars per annum” .