Energy and Mining Sectors Drive Demand for Water and Wastewater Treatment Equipment in South Africa, Finds Frost & Sullivan

CAPE TOWN, South Africa, August 30, 2010 - Increased demand for energy supplies and the need for regulatory
compliance by mining companies are driving the water and wastewater treatment
equipment market in South Africa.

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New analysis from Frost & Sullivan (www.environmental.frost.com)
South African Water and Wastewater Treatment in the Mining and Energy
Sectors, finds that the markets were valued at US$17.0 million in 2009 and
estimates them to reach US$25.1 million in 2015. The following market sectors
are covered in this research service: coal mining, gold mining, platinum
mining, copper mining and energy.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"The electricity utility Eskom's expansion programme and enhanced
legislative enforcement to ensure zero liquid effluent disposal (ZLED) by
Eskom and mining companies are key factors in the growth of this market,"
notes Frost & Sullivan Research Analyst Derrick Chikanga. "Currently, Eskom
is undertaking an expansion initiative that will require additional
investment in both water and wastewater treatment equipment."

South Africa's energy sector is a large consumer of freshwater,
accounting for approximately 1.5 to 2.0 per cent of the country's freshwater
consumption annually. Both the mining and energy sectors have adopted a ZLED
policy in which all reasonable steps are taken to prevent pollution of water
resources. This is set to boost investments in the relevant water and
wastewater treatment technologies.

However, the lack of financial resources to purchase the required
equipment remains a major obstacle to market development.

"The most advanced water and wastewater treatment technologies, like
reverse osmosis (RO), are very expensive and cannot be afforded by many of
the smaller mining companies in South Africa," explains Chikanga. "Most
mining companies lack the necessary financial resources to acquire advanced
treatment equipment and instead opt for the cheaper options such as lime
treatment to reduce acidity."

Despite numerous challenges posed due to the lack of financial resources,
the market still presents several opportunities for growth.

Equipment suppliers need to supply products within the budgets of most
mining end-users to complement the technology types currently on offer. This
will enable companies to capture both the low- and high-budget end-users.

A key strategy for competitive success will be the provision of value
added technologies and services.

"The provision of value-added technologies that are reliable is an
important element in this market," concludes Chikanga. "Mining and energy
sectors are continuously changing and require high levels of water recovery.
This explains why RO technologies are gaining popularity amongst end-users."

South African Water and Wastewater Treatment in the Mining and Energy
Sectors is part of the Environmental Growth Partnership Services, which also
includes research in the following markets: An Overview of sub-Saharan
Africa's Water Markets, Procurement Processes and Outsourcing in the South
African Water and Wastewater Market, South African Desalination Plant
Markets, South and East African Water and Wastewater Treatment Equipment
Markets and, South African Industrial Water and Wastewater Treatment
Equipment Market. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants.

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    South African Water and Wastewater Treatment in the Mining and Energy
    Sectors
    M4E0

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

    www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com