Mining tycoon plans to spend $402 million turning his 600 hectares of farmland into a Formula 1 circuit as South Africa eyes a return after 38 years

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, according to local reports

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.

South Africa has explored several Formula One comeback bids since then, although previous efforts have struggled with financing, infrastructure requirements and the commercial demands of hosting the global racing series.

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.

Motorsport is also familiar territory for Froneman, a former racing driver, although he says the proposed development is primarily a commercial venture.

Speaking to local media about the project, Froneman said: “I’ve always had a little bit of racing in me, but this is far more about a commercial opportunity.”

“I’m interested in the technology, but this is very much a commercial initiative and something that is, in my view, in the national interest.”

Rather than upgrade the existing Kyalami circuit in Gauteng, 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.

“It’s not as simple as just bringing it back,” he said.

The proposed Swartland site also has access to the N7 highway and rail infrastructure, with two additional off-ramps planned, while remaining within reach of Cape Town.

The racing circuit would form only one part of a broader development 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,” Froneman said.

The consortium is also banking on Cape Town’s tourism appeal, including its wine industry, restaurants, coastline and international visitor base, to broaden the commercial value of race week beyond the circuit itself.

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.

However, the main challenge is securing investor commitments before Formula One awards a race, while organisers will also want proof that the project can be financed and delivered.

“You’re not going to get your equity funders to commit unless you have an agreement with Formula One,” Froneman said.

If the project proceeds, Froneman estimates it could create more than 15,000 jobs, with another 8,000 people employed during race week.