A South African consortium led by former Sibanye-Stillwater executive chairman Neal Froneman is exploring a $402 million project to turn a 600-hectare farmland into a Formula 1 circuit in order to bring racing back to the country by 2031, as per a report by Business Tech.Blue Mountain Racing has secured about 600 hectares in Swartland, near Cape Town for a proposed Formula One standard Circuit and wider hospitality, entertainment and property development. The proposal remains at the pre-feasibility stage and has not yet secured a Formula One race, but if successful it would mark South Africa’s return to the championship 38 years after its last Grand Prix at Kyalami in 1993.
From mining to motorsport
Froneman is best known for his career in South Africa’s mining industry, having led Aflease Gold, which became Gold One, and helped create Uranium One from Aflease’s uranium assets before becoming a prominent gold and platinum executive at Sibanye-Stillwater.But motorsport is also familiar territory for Froneman, a former racing driver, although he said the proposed development is a commercial venture. “I’ve always had a little bit of racing in me, but this is far more about a commercial opportunity,” he said to the local media.Froneman said modern Formula One events require much more than a race track, including capacity for about 125,000 spectators and transport systems capable of moving large crowds into and out of the venue within three hours. This is why, rather than updating the existing Kyalami circuit in Gauteng, Blue Mountain Range, Blue Mountain Racing plans to develop a new facility from scratch in the Western Cape. Froneman said modern Formula One events require much more than a race track, including capacity for about 125,000 spectators and transport systems capable of moving large crowds into and out of the venue within three hours.
More than a Formula One circuit
The racing circuit forms just one part of the broader development project that includes a 10,000 square-metre media centre, an amphitheatre and other entertainment facilities. The track would also be designed to host MotoGP and other racing categories, giving the development additional revenue opportunities outside Formula One race weekends.“This is not just going to be a Formula One track. It’s also going to be a MotoGP track,” said Froneman.The location of the project in Cape Town is also banking on its tourism appeal with its wine industry, restaurants, coastline and international visitor base.The project is expected to cost about R6.7 billion ($402 million), with 40% of the funding coming from equity and 60% from debt. Before raising the full amount, however, the developers plan to spend about R120 million ($7.2 million) on seed capital, feasibility studies, environmental approvals, engineering and other preparatory work.“You’re not going to get your equity funders to commit unless you have an agreement with Formula One,” Froneman said, while adding that Formula One would also require evidence that the project could be funded.However, he added that the property component provides a fallback should the Formula One bid not succeed, as the land could still support a high-end real estate development. “Even if you are unsuccessful with Formula One, you will still have very valuable land that underpins this that you could continue with the real estate development,” Froneman said.If successful, the Froneman estimates the project could create more than 15,000 jobs with another 8,000 people employed during race week.
