By DON ROBERTSON

XISAKA, a seven-month-old black empowerment group, is negotiating with a European multinational to build a R220-million non-ferrous scrap metal and waste material refinery, the first in Africa.

By next year, the export of most non-ferrous scrap metals and waste materials will become illegal when the United Nations enforces the terms of the Basel Convention, aimed at reducing the production of waste material and the transport of these across international borders.

South Africa became a signatory of the Basel Convention in May 1994.

Xisaka (meaning Nest) has the backing of the Industrial Development Corporation which, together with the un-named European group (assets of R40-billion), will assist in a feasibility study likely to take place over the next 12 to 18 months.

Xisaka was established in October last year and includes several prominent black businessmen as well as the 46 000-member SA Railway Harbours Workers' Union (Sarhwu) as shareholders.

The directors are chairman Peter Rabali, Khazamula Michael Nkuna, Stan Fanaroff, Alec Merkel, Leo Isaacs, Derek Simoko and Bonakele Jonas (for Sarhwu). If approved, the refinery will beneficiate and upgrade non-ferrous scrap metals. It will also conduct the chemical treatment of waste products such as lead residues and copper sludges. These products fall within the ambit of the Basel Convention.

In the past, such products were exported in unprocessed form, for little revenue and sometimes re-imported as processed material. When international regulations prevent this, it will not be possible to continue the export of this waste material.

When exports are banned, some of the materials will have to be stockpiled in waste areas. Recognising this possibility, Xisaka began negotiations with the European group, now at an advanced stage.

Two meetings have already taken place and in two weeks' time a third meeting with senior members of the IDC and Xisaka will take place in Europe. This could herald the go-ahead for the feasibility study.

There is no refinery able to process these materials anywhere in Africa and the feasibility study will undertake to establish the level of raw material available from the southern half of the continent.

Director Stan Fanaroff says the cost-intensive nature of such a refinery makes it necessary to maximise output levels. It will be essential to have a guaranteed supply of raw materials from neighbouring states.