Durban - Tata Steel and global paper and packaging business Mondi are squaring up over a turf battle in Richards Bay, where Mondi is opposing the location of Tata Steel's proposed ferrochrome smelter on its doorstep.
Mondi is a subsidiary of Anglo American, and Tata Steel is a subsidiary of the Tata Group, an Indian-based multinational .
Richards Bay, which is the base for several heavy industries, has been plagued by pollution and environmental problems, resulting in conflict with local residents.
But this was the first time that industry had locked horns over industrial development, one resident said.
Bob Hunt, the general manager of Mondi in Richards Bay, said yesterday that "serious concerns exist around the compatability of a pulp and paper mill and a ferrochrome smelter as immediate neighbours due to the possible significant negative impact on Mondi's product quality and the resulting loss of business".
Tata Steel's R650 million smelter will, when phase 2 is complete in 2009, produce 240 000 tons of high-carbon ferrochrome a year.
The production process by which high-carbon ferrochrome will be produced results in solid, liquid and gaseous emissions.
During the construction of the two phases, about 1 800 people will be employed. Once complete, 130 direct permanent jobs will have been created.
Mondi employs over 500 people directly at its Richards Bay facility.
Among Mondi's concerns with the smelter's location are chromium 6 and particulate emissions.
Chromium 6 gained notoriety in the movie Erin Brokovich, which is based on a true story about chromium 6 contaminating the water supply of a US small town, resulting in cancer in its residents.
Chromium 6 emissions can be airborne.
A consultant to Mondi said Mondi's products were used for food packaging, which needed to be of the highest hygienic and safety standards.
The smelter's environmental report said the proposed smelter was not likely to result in acute or chronic health effects to healthy or sensitive individuals due to exposure to, among other emissions, chromium 6.
Recommended measures to prevent pollution on Mondi's site include building a 3m high boundary wall.
Saugata Sengupta, Tata Steel's project manager for the overseas project task force, said yesterday Mondi had had some concerns, which had been addressed in the environmental impact report and specialist studies.
Sengupta was in Richards Bay this week for two public meetings at which the environmental report, on which Tata Steel has spent about R3.5 million, was discussed.
A final report will now be submitted to the provincial department of environmental affairs for a decision.
Sengupta said: "We are reasonably confident of being given the go-ahead. But until we have the record of decision in our hand, we cannot be sure."