Durban - While dams are filling up elsewhere in KwaZulu-Natal, Richards Bay continues to feel the drought.
Experts say that restrictions on water supply - from Goedertrouw Dam, which is at 19% of its capacity - could cripple the area’s and the province’s economy.
The dam was built in the mid-1990s to pump water from the Thukela River to the Mhlathuze catchment, supplying domestic users, commerce, industry and agriculture.
To ease the pressure, a multimillion-rand desalination plant is also being built.
The area has two aluminium smelters, Hillside and Bayside; a fertiliser plant operated by Foskor; and iron ore, rutile (titanium oxide) and zircon mining operations conducted by Richards Bay Minerals.
Although the area is rich in minerals, according to StatsSA, it has an unemployment rate of 31%.
“A total 124 408 people are economically active (employed or unemployed but looking for work), and of these 31% are unemployed. Of the 70 419 economically active youth (15 to 35) in the area, 40.8% are unemployed.”
A well-placed source says Richards Bay’s large industrial operations are some of the biggest taxpayers in the province and slowing down operations - or shutting them down - could be “disastrous” for KwaZulu-Natal.
“We are in dire straits if that happens. Tens of thousands are employed at those plants and they use tens of millions of litres of water every day, so if the situation does not change, we could be facing an even more serious situation very soon.”
An economist who works closely with the government said it was hard to quantify just how much the drought had contributed to the decrease in production output.
“The economy has generally been very sluggish, so it’s hard to attribute that trend to just one factor. But it is also hard to dismiss the drought’s impact.”
He said electricity supply problems could have also played a role. This trend was not isolated to KwaZulu-Natal, it was also evident nationally.
“If things were to slow down significantly enough, the effects would first be felt in terms of retrenchments. The revenue through taxes would also take a knock.”
He said the economy of smaller towns was tied to the manufacturing sector, especially if it was well-developed.
“It’s not as if your local fish and chips shop has closed down, or might close down. Those can be easily replaced. Larger operations are hard to establish and maintain so, if they shut down, they can easily render any settlement a ghost town.”
Richards Bay Minerals managing director Mpho Mothoa said: “There is no ambiguity here: in the absence of water our operations cease. That is why we manage every aspect of our relationship with water to ensure that we don’t take a drop for granted.
“To limit the amount of fresh water we use, we capture and recycle about seven million cubic metres of process water, rainwater and run-off from our smelting and processing facilities each year.”
The plant re-used its water up to 21 times.
“Process water and seepage from tailings stockpiles is recovered, and treated effluent is recycled for use in mining operations,” said Mothoa.
“Local lake levels are picking up due to some good rain we recently experienced, but the crisis is far from over.”
President of the Zululand Chamber of Commerce and Industry, Judith Nzimande, said operations in the area had banded together to curb the effects of the crisis.
THE MERCURY