Limpopo Economic Development Enterprises (LimDev) yesterday received a major boost to its fortunes when it clinched a whopping R3billion cash investment deal with a giant Chinese steel company.
It is envisaged that a total of about 1000 jobs will be created in the area once the work begins.
LimDev - a parastatal whose mission is to finance and develop business in Limpopo - has entered into a long-term agreement with Sino Steel, the biggest government-owned steel company in China.
The R3billion investment is to develop the Dilokong chrome mine in Burgersfort so as to increase its output.
LimDev's upbeat managing director, Stan Mathabatha, said yesterday that the R3billion would also be used to establish two additional smelters at the mine to increase its chrome processing capacity.
"Our projections were showing that the chrome mine here was going to close down in the next couple of years had this investment not come. The workers were going to be retrenched.
"But now we can already see close to 1000 jobs coming when the project starts," Mathabatha said.
"This is the first major long-term partnership of this amount from outside the country.
"We hope to make Limpopo one of the successful mining areas in the country after Johannesburg," he said.
Mathabatha said a joint venture agreement between LimDev and Sino Steel had already been signed and that the money would be sent to LimDev before the end of May.
"The project will start at the beginning of May," Mathabatha said.