Rely Intracast set to relocate to the site with the intention of establishing a new foundry.
The GeT Metal Group announced in June 2023 that it had acquired Naledi Foundry Operations, one of the oldest and largest ferrous foundry operations in South Africa, that was placed in business rescue during April 2022.
“We took over the site at the beginning of May 2023 having purchased the property and all of its movable assets through the business rescue practitioners. I must mention right up front that the BRP was very professional in their dealings and were very skilled in mapping out the plan for the transaction to be successful and reaching out to all the creditors,” said Ebrahim Khan, a Director at GeT Metal Group, the acquiring company.
“Naledi Foundry was an operational entity and there has been theft and vandalism at the facility, which we were aware of, before we entered into negotiations. Outstanding amounts owing to local councils, for example the electricity bill, have been negotiated and settled.”
“We have begun this process with a fresh new approach that also fits into our business plan with the other entities in the group, which we have acquired over the last few years.”
Proposed billet and precision casting foundry project
GeT Steel, the local steel processing company within the GeT Metal Group, has invited interested and affected parties to submit comments on a draft scoping report into the refurbishment of the Naledi Foundry, in Benoni, Gauteng. The company also intends to install additional infrastructure and equipment to establish a new billet and precision casting foundry on the remainder of the site.
The foundry has two IFM 7 multi-function furnaces with twin-power systems supplied by ABP Induction Systems
The historic Naledi Foundry, located at 37 Lincoln Road, Benoni, in the Gauteng Province, previously owned by Naledi Foundry Operations (Pty) Ltd is no longer in operation and is no longer owned by Naledi Foundry Operations (Pty) Ltd.
The foundry used to produce cast components from scrap steel and other raw materials. The foundry was abandoned and has not been in operational since 2022. Naledi Foundry Operations (Pty) Ltd, one of the oldest and largest ferrous foundry operations in South Africa, was placed in business rescue during April 2022. The property and the assets (infrastructure and equipment) associated with the historic Naledi foundry were acquired by GET Metal Properties (GeT) in May 2023.
GeT Steel is undertaking a stakeholder engagement process as part of its waste management licence application, as well as an atmospheric emissions licence.
The draft scoping report is available to view here (https://enviroprac.co.za/documents/) and comments can be submitted to admin@enviroprac.co.za before June 14.
GeT intends to refurbish the equipment and infrastructure at the historic Naledi Foundry site on the remainder of Erf 8340 and to relocate the equipment from GeT’s currently operational Rely Intracast Foundry to the site with the intention of establishing a new foundry on Erf 8340. The property is 9.8 hectares in size and is located at 37 Lincoln Road, Benoni Industria.
The project will comprise two separate and discrete operational areas as follows:
• Area A: A steel billet manufacturing foundry and
• Area B: A precision casting / investment castings foundry.
The environmental practice (Enviroprac) have been appointed to undertake a scoping and EIA Process (S&EIA) to inform applications for a Waste Management Licence (WML) with the Gauteng Department of Agriculture and Rural Development (GDARD) and an Atmospheric Emissions Licence (AEL) Application process with the City of Ekurhuleni Municipality. The WML and AEL Application processes will run concurrently (with combined stakeholder engagement) with the two identified competent authorities.
GeT Steel expects the refurbishment and construction project to provide 150 temporary jobs during the construction phase and a further 80 permanent operational phase jobs. The company anticipates an initial capital investment of R150 million at the site and to make a R30 million income tax contribution every year.
GeT Steel assures in the draft scoping study that a waste-to-value facility such as the proposed foundry works meets the need to reduce over-reliance on virgin, non-renewable raw materials as it will convert scrap metal waste to usable metal components.
The project will involve the diversion of scrap metal from landfill, while the melting of the metal will take place in furnaces powered by electricity rather than combustion technology.
A small volume of gas will, however, be required to be combusted for the gas-fired top-hats in the rolling mill. A gas pipeline from Sasol is already in place to supply the site, avoiding the need to transport gas to the site.
The site will require 10 000 litres of water a day to service the steel billet manufacturing foundry, but GeT Steel plans to build a closed water circulation system to reduce water supply needs. The company also plans to harvest rainwater.
GeT Steel is still investigating opportunities to supplement the facility’s grid power requirements with solar panels, which will be outlined in an upcoming engineering and services technical report in due course.
It is envisioned that the steel billet manufacturing foundry will process up to 15 000 tons of scrap steel, iron and stainless steel a month and produce up to 14 000 tons of steel billets a month.
Notably, the hazardous waste produced from the melting process will be skimmed off the surface, cooled and sold to third parties for off-site processing, or be disposed to a licensed landfill in the case where suitable third parties cannot be sourced.
In turn, the precision casting foundry that will be built will comprise 11 electric induction furnaces to melt metal for pouring into ceramic moulds.
The precision casting foundry will process up to 220 tons of scrap material a month, to produce about 210 tons of cast components a month.
GeT Steel will be using abatement equipment to lower emissions on site.
