As uncertainty continues to weigh on the future of ArcelorMittal South Africa, particularly within the Newcastle industrial landscape, attention has increasingly turned towards emerging investment initiatives that could reshape the region’s economic trajectory.
Against this backdrop, renewed momentum is evident in discussions between Lions Bay Resources representatives and Newcastle municipal officials, focusing on the long-term future of the mothballed Karbochem site.
At the centre of these engagements is a proposal to repurpose the facility into a centralised gold concentrate roasting and processing hub, alongside potential energy generation capacity.
If fully realised, the project could establish a significant new anchor for mineral processing and energy infrastructure across northern KwaZulu-Natal, while simultaneously repositioning Newcastle within the broader regional industrial value chain.
The engagement, was held on Wednesday, 3 June 2026, at the Mayor’s Parlour at Newcastle Municipality. Although no media invitations were extended to the engagement, the Municipality’s Communications Unit subsequently provided clarity on the outcome of the discussions.
“During the engagement, Lions Bay Resources confirmed that the acquisition of the former KCE Plant located within the Karbochem Industrial Park has been successfully concluded. This development officially initiates Phase One of a strategic investment programme that will see the refurbishment and redevelopment of the facility into an energy generation plant over the next twelve months.”
Moreover, the Municipality underscored that this development represents a notable step forward in the revitalisation of Newcastle’s industrial assets.
In addition, it reflects what officials describe as strengthening confidence in the municipality’s long-term economic prospects and investment environment.
Welcoming the initiative, Newcastle Mayor Councillor Dube framed the project as a potential catalyst for broader economic renewal, while also emphasising its signalling effect for future investors.
“The redevelopment of the Karbochem Industrial Park represents far more than an investment in infrastructure. It is an investment in people, jobs, enterprise development and the future prosperity of Newcastle. As a municipality, we remain committed to fostering strategic partnerships that unlock economic opportunities, strengthen local industries and improve the quality of life of our residents,” said Councillor Dube.
Building on this, the Mayor further stated that the investment is closely aligned with the Municipality’s 2026/2027 Integrated Development Plan (IDP), Vision 2035, and its wider economic development framework, all of which are designed to advance inclusive growth and broaden participation in the local economy.
“As we advance our development agenda, we require partners who share our vision of a thriving, competitive and investment-ready Newcastle. The commitment demonstrated by Lions Bay Resources sends a strong message that Newcastle remains open for business and continues to offer significant opportunities for industrial growth, innovation and investment,” he added.
In a similar vein, municipal officials emphasised that the project is expected to generate wide-ranging socio-economic benefits.
These include job creation, skills development, support for local SMMEs, infrastructure improvement, and increased economic activity across the region.
Furthermore, the officals expressed confidence that the investment could act as a catalyst, encouraging additional investors to consider opportunities within Newcastle’s industrial and commercial sectors.
The Communications Unit further noted that Newcastle continues to offer strategic advantages including established industrial infrastructure, regional connectivity, a skilled labour force and access to key economic corridors. These advantages position the municipality as a competitive destination for investment across manufacturing, energy, logistics and related sectors.
As discussions progress, Mayor Dube reaffirmed the Municipality’s commitment to maintaining an enabling environment for responsible and sustainable investment.
“This investment validates our belief that Newcastle’s industrial assets continue to hold immense value and untapped potential. We view this development as the beginning of a broader journey towards industrial renewal, economic diversification and long-term prosperity. Newcastle Municipality stands ready to work with investors who are committed to creating jobs, empowering local communities and contributing meaningfully to our shared vision for growth,” concluded Councillor Dube.
It is worth noting that Newcastillian News first reported on the development in December 2025, following confirmation that AIM-listed Metals One PLC had agreed to inject up to US$1.8 million (approximately R30.8 million) into Lions Bay Resources.
Subsequently, in April 2026, Newcastillian News reported that Lions Bay Resources had formally acquired the Karbochem site.
At the time, Daniel Maling, Managing Director of Metals One, indicated that the project was moving decisively from planning into implementation.
He said, “Our vision for Lions Bay Resources is taking shape. Having secured the cogeneration plant in Newcastle and an initial 30% stake, we are now focused on closing the Vantage transaction and exercising our Option to go to 49.9% of LBR.”
He further noted that both operational and legal teams in South Africa were continuing to progress the Vantage transaction, alongside parallel efforts to secure additional complementary mining assets.
Taken together, the developments signal a gradual but notable shift in confidence around Newcastle’s industrial base, particularly at a time when broader structural uncertainty continues to shape South Africa’s steel and manufacturing sectors.
While several elements of the project remain in transition, the direction of travel points towards a deliberate effort to reposition dormant industrial infrastructure into productive use, supported by targeted private investment and municipal alignment.
In this regard, the engagement underscores a broader attempt to move beyond stagnation and towards a more diversified and investment-driven local economy.
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Looking ahead, the real test will lie in execution, coordination, and the ability to convert strategic intent into measurable economic outcomes on the ground.
If successfully implemented, the initiative could strengthen Newcastle’s standing as an industrial node within KwaZulu-Natal, while also opening the door to further downstream opportunities in energy, processing, and logistics.
For now, however, the project remains in a formative phase, with its longer-term impact ultimately dependent on sustained commitment from both public and private stakeholders.
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6 Responses
Great news for Newcastle more value more job opportunity s keep it up….
Fine. BUT where is this project going to get the raw material from. Will it be transported on our already truck overburdened roads?
Great news indeed!!
I believe that this will greatly benefit the people within the municipality and beyond. Offering much needed job opportunities and a hope is a warmly welcomed.
Thank you Lions Bay and Partners
Great news, when the energy sector is mentioned is there a possibility of thinking of the use of hemp for biofuel there are more then 20 hemp permits holder farmers in Amajuba who can supply raw material
This promises to be a good intervention
Yes we need more jobs to be created for the people.