Mar 27, 2009
Engineering|Gold|Johannesburg|Toronto|Vancouver|Africa|Central Rand Gold|CoAL|Energy|Engineering News|Exploration|Flow|Johannesburg Stock Exchange|London Stock Exchange|Mining Weekly|Nuclear|Renewable Energy|Renewable-Energy|Screen|Water|Africa|Canada|South Africa|United Kingdom|United States|Carbon Capture-and-storage Technology|Clean-coal Technology Centre|Clean-coal-technology Centre|Energy|Flow|Mining|Nuclear|Renewable Energy Initiatives|Consolidate Main Reef|Barack Obama|George Brown|Martin Creamer|Power|Rand Gold|Tim Modise|Trevor Manual|Water|Engineering News|Mining Weekly|Carbon Capture-and-storage Technology
© Reuse this
Modise: In an hour’s time South Africa will be launching its first major onslaught against global warming with the opening on a new clean-coal technology centre. Tell me more.
Creamer: At nine o’clock today the Minister of Minerals and Energy Buyelwa Sonjica will represent South Africa’s first onslaught against global warming. She will be opening this new clean-coal-technology centre called the Centre for Carbon Capture and Storage.
This carbon capture and storage is something that was punted by the new US President, Barack Obama, during his campaign. We also see that the Prime Minister of the UK, George Brown, is saying it must happen. The International Energy Agency wants 200 of these before 2030.
At the G8 Summit that is coming up soon, this is going to be an issue. People are really backing coal. We are a coal-based economy and we can see the world not wanting to move away from coal. Even though this carbon capture-and-storage technology is going to be expensive, they are still backing it ahead of going straight into nuclear.
If it becomes too expensive, nuclear might very much come into its own beforehand. What is envisaged it that the carbon capture and storage is taking that carbon dioxide that is pumped into the air by these power stations, capturing it and then injecting it into the ground.
It is a way of giving a breathing space so all the renewable energy initiatives can come in that will not be carbon forming.
Modise: The pouring of the first commercial gold from under the City of Gold is on track for the middle of this year. I thought mining was taken to other parts of the country and was no longer taking place in the City of Gold.
Creamer: Johannesburg, mining began here 123 years ago. We have forgotten about those days, but they’re returning. We see Central Rand Gold, which is listed on the London Stock Exchange and the Johannesburg Stock Exchange, now coming forward with an announcement that the first commercial gold coming out of there will be mid-2009.
By the end of 2009 they will be producing at a rate of 100 000 ounces a year. Then they want to move in 2010 to 250 000 ounces and eventually a million ounces a year from 2012. There is still a lot a gold under Joburg.
This is now being recognised by this company, Central Rand Gold. They are using techniques that are new, of course. There will be low-noise blasting and no mine dumps. They promise that they won’t pollute any water and they are using mechanised mining techniques more common in coal mining.
So, we see a lot of difference there now coming through. These old names that we remembered like Consolidate Main Reef, which is where they have started mining now, Crown Mines and Village Deep, Robertson Deep, all there old names are starting to come back on to the radar screen.
Modise: Finance Minister Trevor Manual is offering a 100% tax write-off to new small-mining initiatives.
Creamer: Yes, Trevor Manual wanted to emulate Canada. They have the flow-through scheme, which has created a mining investment culture second to none, with big investment in Canada, Toronto and Vancouver.
We thought that we are a mining country and we needed to emulate this. Trevor Manual then got studying this with his Treasury and then decided with the Minerals and Energy that they were going to reject this idea of just copying the Canadians with their flow-through scheme and would introduce a new scheme, which is quite interesting and it actually begins with the investor.
It looks like creating a new class of investor and venture capital companies. So, it is going to require people to come up to the plate to start making sure they benefit from this, but the people that will invest are the investors which are either individuals or listed companies.
They will have a generous 100 % tax right-off, but they have got to invest through funds that have still got to be formed. Venture capital funds and venture capital companies are the companies that will invest in the junior miners. There are a lot of conditions.
If there is any criticism it is perhaps because Trevor Manual is now targeting the very-low, bottom-end of the junior mining spectrum, and some people are a little bit disappointed with that, they wanted it more holistic.
It could be a good starting point and it is a very interesting model and it could create this culture that we have been looking for in investing in miners, particularly in the junior mining fraternity, and in exploration.
Modise: 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
Updated 7 hours ago Despite a degree of ambiguity around the transfer of small business-focused promotion programmes from under the auspices of the Department of Trade and Industry (DTI) to the newly formed Department of Small Business Development (DSBD), Small Business Development...
Updated 7 hours ago The International Monetary Fund (IMF) has once again lowered its 2014 growth forecast for South Africa to 1.7%, having previously forecast that Africa’s second-largest economy would expand by 2.3%. The 0.6% downward revision, which is contained in the World...
Updated 7 hours ago A study on the economic state of the City of Johannesburg’s (CoJ’s) economy has revealed lagging growth and a lack of diversification as the city struggled to return to pre-financial crisis growth levels. The ‘CoJ Economic Overview 2013: A Review of the State...
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Updated 51 minutes ago Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
Updated 53 minutes ago South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
Updated 53 minutes ago The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
Updated 53 minutes ago The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
Updated 53 minutes ago South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...