http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 18, 2012

18/05/2012 (On-The-Air)

Back
safompod18052012
 
 
 
Engineering|Johannesburg|Africa|BHP Billiton|Engineering News|Industrial|Industrial Development Corporation|Mining|Mining Weekly|Projects|Resources|Road|System|Africa|Europe|China|Seychelles|South Africa|USD|ZAR|Machinery|Manufacturing|Manufacturing Footprint|Martin Creamer|Engineering News
Engineering||Africa|Industrial|Mining|Projects|Resources|Road|System|Africa||||Manufacturing|||
engineering|johannesburg|africa-company|bhp-billiton|engineering-news|industrial|industrial-development-corporation|mining|mining-weekly-company|projects|resources|road|system|africa|europe|china|seychelles|south-africa|usd|zar|machinery|manufacturing|manufacturing-footprint|martin-creamer|engineering-news-published-medium
© Reuse this



Every Friday morning, SAfm’s AMLive’s radio anchor Xolani Gwala speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

Gwala: The great China-led economic supercycle that has been boosting global economies for a decade appears to be coming to an end.

Creamer: It appears to be coming to quite an abrupt end if you take the example of some of the biggest companies in the world. Those that have been supplying China and relying on this very big resources supercycle, including South Africa, of course, suddenly putting on the brakes.

I’m talking now about the world’s biggest mining company, BHP Billiton, also has its headquarter down the road in Johannesburg. BHP has decided that it is going to relook and review its big expenditure programme. We are talking about $80-billion over five-years.

They are saying that they are no longer going to spend that. It is against the background of people demanding cash from these companies. It has gone back to that type of atmosphere that we had before the last economic meltdown where the investors say that you don't spend our money on new growth, you give us our money back in the form of dividends or share buy-backs.

We are back in that era that we were just 2008 where people are not looking at growth. The big five world mining companies that were looking to expend about $200-billion, I mean I’m talking close to R2-trillion in the next five-years.

Now they are under pressure from their shareholders not to do that, because people see that this supercycle is either come to an end or there is a huge interruption within it that makes them rethink. You get from the chairman of BHP Billiton speaking in Sydney Jac Nasser saying that improvement is not really underway in the world.

He says it is going to feel as if the ground is slipping under your feet. That is quite a statement from a person leading a company like that. So there is panic around and it is clearly going to effect expenditure on big growth projects, which will have a massive knock-on affect down the line.

Gwala: Some six-billion-rands in government help will be available to local manufacturers from June 4.

Creamer: And not to soon either, because we also have this uncertainty in the world with our manufacturers having reported a very bad month in March, a dismal performance there where things were down.

There has been a contraction of our manufacturing footprint for decades now. We have had this deindustrialisation and the government is coming in pretty quickly and saying look we do want you to compete, we do want you to put in that new machinery, don’t decide now to just operate as a cash-cow.

There are headwinds, your trading partners are not performing as well as they were in Europe, but make sure that you remain competitive now. In order to that, we will assist you. Nearly R6-billion will be available from June 4 and there will be an online system where people can work very efficiently.

The production incentives are being managed by the Department of Trade and Industry and then the working capital side of it will be managed by the State-owned Industrial Development Corporation.

Specifically to try and make sure that they do across a broader front what they have been doing in the clothing and textile industry. We know manufacturing shed 200 000 jobs during the 2009 recession, 200 000 out of a million in total.

They want to make sure that this particular part of the economy now stabilises and they are prepared to put their money where their mouth is and its close to R6-billion available. From June 4 people can apply to have this production incentive.

Gwala: The South African Navy is now allowed to operate in Tanzanian and Mozambican waters to stop piracy.

Creamer: This piracy is hitting the real economy. We have got enough headwind at the moment, we don’t need something like piracy.

We see that GDPs of islands around us like Seychelles at the height of this piracy fell 8%, because people don’t want to tour, trade is affected. We know that there are 100 000 cargo ships sailing through the Indian Ocean a year and we have been having an average of 200 piracy attacks a year since 2009 and 1 000 taken hostage.

This again, trading is becoming more difficult, our trading partners aren’t doing what they used to do. We don’t want anymore interruptions. There is a situation where our navy overheads are covered. We’ve paid for these ships, now they need to do their job.

They can’t do it very affectively unless the have a legal framework in which to work. The South African Navy has now made sure that it is allowed to operate within Tanzanian and Mozambican waters to stop this piracy.

They are also calling for even more amendments and adjustments to international legal frameworks to make sure that this becomes a smooth passage in combatting this maritime crime, which is ripping off billions of dollars a year from peoples’ purses.

Hopefully this won’t be another impediment. Interestingly in April, the South African Navy did assist in the tracking down and detention of seven Somali-based pirates and they were able to also assist with the freeing of six fisherman who were being held captive. So, it is also the fishing industry that is badly affected. By being there, the Navy can stop not only the piracy, but they can also stop all the smuggling.

Gwala: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he’ll be back with us at the same time next week.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
South Africans once mighty gold mining companies are preparing for worst-case scenarios. A major effort is being made to get cargo off the roads and back on to rail using a new app. The full weight of legislation is being thrown behind South Africa’s new...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96