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Midvaal Water Company is a Water Service Provider which has been supplying potable water in bulk to the Klerksdorp, Orkney, Stilfontein area since the middle of the 20th century. In addition to this, Midvaal renders operation, maintenance and consultancy services for water treatment plants and sewage works.
The Company is situated 15km from Stilfontein in the North West Province on the banks of the Vaal River and serves an area of some 900km². It supplies the Greater Municipality of Matlosana (Klerksdorp) as well as the mining and industrial undertakings in the area with potable water. Midvaal purchases raw (untreated) water under license from the Department of Water and Sanitation (DWS) and after purification, delivers it to consumers.
Midvaal is a non-profit organisation, registered under Section 21 of the Companies Act. The company has a successful track record of generating sufficient funds, through its operations, to cover all operating costs. It has also been successful in its mission to consistently deliver reliable services at acceptable costs – to the great appreciation of its valued customers.
During the past six decades, Midvaal has acquired vast and valuable experience in process technology applicable to wastewater and potable water. Water engineering, the operation and maintenance of potable water treatment plants and wastewater purification plants, bulk metering, and radio telemetry systems, are some of the fields of expertise. The Company has service level agreements with all its clients, which are periodically reviewed to ensure their relevance in terms of operational, business and client needs alike.
The Company operates a SANAS accredited and well-equipped laboratory This department, the Midvaal Scientific Services, provides both analytical and consulting services concerning drinking water, underground water and effluents. This includes analysing and evaluating samples, recommending treatment processes and determining the suitability for various uses.
The Scientific Services Section of Midvaal has obtained accreditation status with South African National Accreditation System (SANAS) in 2002 as its activities are compliant with all the requirements of the ISO 17025 general requirements. SANAS is South Africa’s government-endorsed accreditation body. Through this system, laboratories are also recognised by the International Laboratories Association (ILA) which means that SANAS-endorsed reports are accepted by many of South Africa’s trading partners in Europe, North America, Australia and Asia. Midvaal Scientific Services is accredited as a test laboratory, with reference no T0132.
Please visit the SANAS website for verification and further information about SANAS.
Midvaal Water Company was established in August 1954 as a Pty Ltd. under the name of Western Transvaal Regional Water Company charged with meeting the water requirements of the local gold mines and then Stilfontein Health Committee in the KOSH region.
Capital to build the infrastructure of the purification plant was raised by way of a loan obtained from Anglo American Corporation in the sum of US $ 2 million. The loan was repaid out of the funds generated by water sales. GENCOR was the biggest consumer at the time and they were appointed under contract as managers, technical experts and secretaries for the Company.
The original design capacity of the purification plant was 56 ML/day. To meet the additional requirements of Klerksdorp the capacity of the plant was increased to 85 ML/day in 1958. A pipeline was also installed to supply water to Orkney. As demand for water increased, the capacity of the plant was again increased in 1962 to 114 ML/day. The booming mining industry added impetus to increase the demand of water further and finally the capacity of the Company was increased to 320 ML/day.
Initially the Company supplied 90% of its production to the mining sector and only 10% to the municipal sector. Due to decline in mining activity and increase in household consumption, the Company currently supplies 70% water for human consumption through the City of Matlosana and only 30% to the mines still operating in the KOSH region. The Company is the only bulk supplier of preference and repute in the KOSH region with an excellent and enviable track record.
To improve its position as a water services provider, the institutional status of the Company was changed to a Section 21 Company (a Non-Profit Organisation) in 1984. Furthermore, due to rationalisation of its operations, GENCOR sold its interests in the area of operation of Midvaal Water and cancelled the management contracts it had with the Company in 1997. The Company operates as an autonomous and independent entity as from that time.
In 1998, the name of the Company was changed to Midvaal Water Company to be in line with the current dispensation.
At the initial incorporation of the Company shares were held by the Mining Companies operating in the region and they represented as the shareholders. The shares were bought back by the Company and there is no shareholding or ownership interest in the Company. Therefore, the Company owns itself and all of its resources and assets belong to it.
The Company is a non-profit organisation registered under the Companies Act. It has enjoyed so far tax free status like any other local government organisation.
In terms of the provisions of the Companies Act 2008, the income and property of the company shall not be distributable to the company’s incorporators, members, directors, officers or persons related to any of the foregoing. Furthermore, the company shall apply all of its assets and income, however derived, to advance its stated objects, as set out in its Memorandum of Incorporation. Therefore, the funds generated are utilised solely for the purpose of maintaining and enhancing water supply services in the best interest of the communities being served.
In terms of the Memorandum of Incorporation, the members on the Board of Midvaal Water Company are nominated by its major consumers, who have entered into consumer agreements with the Company for the supply of water. The Board of the Company is constituted by seven nominated directors (of which four are nominated by City of Matlosana, its Water Services Authority, three board members are nominated by the Mining Sector) and three fully independent non-executive directors, to enhance the skills set, held by the Board.
The Board of Midvaal Water Company has demonstrated its commitment to highest calibre and standards of corporate governance and continues to espouse the principles of fairness, accountability, responsibility, transparency combined with ethical behaviour. As a result, the Company seeks to improve compliance with the generally accepted accounting and sound corporate governance practices and prides itself in attaining its objectives in this regard.
The Board has constituted the following Committees to maintain its oversight on relevant matters:
- Infrastructure Development and Maintenance Committee
- Audit and Risk Management Committee
- Human Resources and Remuneration Committee
These Committees have specific Terms of Reference and are assisting the Board to fulfil its oversight and governance responsibilities on matters affecting these committees. The Terms of Reference of these Committees are reviewed from time to time to align them with legislation and meet any newly identified requirements. The Board has also approved a comprehensive corporate governance policy which has strengthened corporate governance practices and clarified the role of the Board as well as Management and other structures.
The governance model of the Company enables the participation of the stakeholders in decision making in the most effective and democratic manner and is one of the most representative structures in the Country.
SIZE OF OPERATIONS AND ASSETS
The Company is a medium sized organisation in the sector and rated at the same level as Magalies Water and Bloem Water. The value of its assets recorded in the balance sheet is around R1,5 billion and a sizeable amount of investments through internally generated funds.
Please visit the SANAS website for verification and further information about SANAS