PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ)2 PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ) 3

““

CONTENTS

MissionTo industrialize the economy,

attract investment, promote exports and overcome the legacy of

economic imbalance

““

VisionThe heartbeat of trade, investment, sustainable economic development

and job creation

1. Vision and Mission ........................................................................................................................ Page 3

2. Overview & Purpose of the SEZ .................................................................................................... Page 4

3. PlatinumValleyInvestmentOpportunities...................................................................................Page4

4. ProjectLocation............................................................................................................................Page5

PICRTURES / CENTREFOLD ............................................................................................................ Page 6

5. SEZIncentives...............................................................................................................................Page8

6. SEZIncentives–OtherAllowances...............................................................................................Page8

7. LegislativeFramework..................................................................................................................Page9

8. Roles&ResponsibilitiesonSEZ....................................................................................................Page10

9. Projectcontacts............................................................................................................................Page12

PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ)4 PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ) 5

2. Overview and Purpose of SEZ

The Platinum Valley SEZ Project has been established to:

•IncreaseforeignanddomesticinvestmentintheBojanalaDistrict;•Increaseexportsofvalue-addedmanufacturedgoodsfromtheregion;•EnsureEmploymentcreation,technologytransferandskillsdevelopment;•Ensurethecreationofeconomiclinkagesthroughsupplierdevelopment;•Ensurethespreadofindustrialdevelopmentregionallyandthepromotionofindustrialagglomerationintheregion;•BuildtherequiredindustrialinfrastructureinBojanalaDistrict;•Promotecoordinatedplanningamongkeygovernmentagencies.

3. Platinum Valley Opportunities

Thefollowingvaluechainshavebeenidentifiedasviableopportunitieswhichneedtobepursued:MiningInputSupply–CapitalEquipment,BallMill,Ventilationandrefrigerationequipment,andDrillingEquipment; •PharmaceuticalsandChemicals •Catalyticconvertors •OilandGasIndustryApplications •FuelCells(MainFocusforthePlatinumValleySEZ) •FerrochromeSector •PlatinumRecycling

4. Project Location

BodireloIndustrialParkinMosesKotaneLocalMunicipalitywillbethemainHubfortheSEZ–a100hactorsitewhichprovidesforathreephasesitedevelopmentfora •LogisticsPark, •LightManufacturingSpaceand •HeavyManufacturingSpace.

PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ)6 PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ) 7

Bodi

relo

Indu

stria

l Par

k : M

ain

Entr

ance

Bodi

relo

Indu

stria

l Par

k: A

dmin

istr

ation

Bui

ldin

g

PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ)8 PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ) 9

5. SEZ Incentives

•Qualifying12R–QualifyingcompanieswillbesubjectedtoareducedCITtaxrateof15%;•Section12S–QualifyingcompanieswithinSEZswillgetextraacceleratedallowancesonbuildingsandimprovementstobuildings•Companiesemployingsalariedemployees(belowR6000permonth)willbegivenawageincentives;•SpecialcustomsandVATincentives;•TaxpayersachievingSEZstatuswillretainstatusfor10years;•Allsubjecttoasunsetclauseuntil2024.

6. SEZ Incentives – Other Allowances

•IndustrialPolicyInvestmentprojects•Depreciationallowance•Capitalallowance–machineryandplant(manufacturingallowances),hotel,ships,aircraft,pipelines,transmissionlinesandrailways;•AirportandPortAssets–5%annualdeductiononthecostofacquisition•Learnershipallowance–•EmployergetsdeductionofR30,000ineachoftheofleadership•Employergetsdeductionattheendoflearnership–R30,000eachyearcompleted•VCCregime;BuildingandHousingallowances.

•Deductionofanallowanceinrespectofenvironmentaltreatmentandrecyclingasset•Deductionsinrespectofenvironmentalconservationandmaintenance•Certifiedemissionreductions–tradablecarbonemissions•Energysavingincentives•ResearchandDevelopmentAllowances–150%•SmallBusinessturnovertax–turnoverlessthanR1million•SmallBusinessCorporation(lessthanR20millionturnover)•Accelerateddepreciationallowance–allYear1•Improvedtaxrates–ongraduatedbasis

7. Legislative Framework for SEZs:

ThePlatinumValleyisestablishedintermsoftheSEZActof2014;TheActprovidefor:

•TheMinistertodeterminepolicyforthedesignation,promotion,development,operationandmanagementofSpecialEconomicZones;

•TheSEZActprovidesfortheestablishmentoftheAdvisoryBoardtoadvisetheMinisteronthefollowing: -DesignationofSEZs; -FinancingandSupportMeasures; -SEZFund–applicationsandapprovals; -SupportMeasures; -ImplementationProtocols.

PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ)10 PLATINUM VALLEY SPECIAL ECONOMIC ZONE (PV-SEZ) 11

8. Roles and Responsibilities on SEZ

TheimplementationofSEZsrequireforacordialrelationsbetweennationaldepartments,provincialandlocalgovernmentbasedonIGRFramework–mutualrespectbetweenthedifferentspheresandstateagencies;

•ThenationaldepartmentswhohavearoleinSEZsare: -Dti–responsibleforpolicyontheestablishmentandoperationofSEZs,NationalTreasury–approval offundingandspecialwaiversforforeigninvestors(capitalmovementandinvestments), -MineralResources–custodianofMineralBeneficiationpolicy; -Energy–implementationofdifferentenergymixandtechnologies; -HomeAffairs–approvalofworkpermitsforforeignworkersinSA; -ScienceandTechnology–supportfortechnologytransfer; -HigherEducation–custodianofskillsdevelopmentpolicy;

•Intheprovince,thekeydepartmentsare:TreasuryandEnterpriseDevelopment,CooperativeGovernance,RoadsandTransport,

•NationalAgencies:SARS,Transnet,Eskom,andIDC

•Municipalities:BojanalaDistrictMunicipality;RustenburgLocalMunicipality;MosesKotaneLocalMunicipalityandMadibengLocalMunicipality

Contact details:PlatinumValleySEZ

NWDCTrade&InvestmentOffice171BeyersNaude,Rustenburg,BojanalaDistrictNorthWestProvince,RepublicofSouthAfrica

www.nwdc.co.za

Tel:0145942576MrDavisSadike

ProjectExecutive:PV-SEZDaviss@nwdc.co.za