Jul 18, 2008
Daily podcast – July 18, 2008Back
Johannesburg|Aim Resources|Eskom|Potash Corp|Africa|Burkina Faso|South Africa|Zimbabwe|ZAR|Perkoa Zinc Mine|Energy|Steel|Bongani Nqwababa|Jacob Maroga|Mercedes Benz
© Reuse this This podcast is brought to you by Mercedes Benz Commercial, the right partner.
From Creamer Media in Johannesburg, I'm Fatima Gabru.
Making headlines today:
State-owned power utility Eskom has provided fresh insight into its much-anticipated funding plan for a 343-billion rand, five-year capital expenditure programme, which is viewed as essential if South Africa is to add some 19 000 mega watts of much needed generation capacity by 2017 and restore a reserve margin of 15%. The margin is currently standing at a paltry 8%.
The utility will go on an international road show next week to map out how it plans to close a 150-billion rand funding gap through borrowings on the South African and international capital markets, with CEO Jacob Maroga expecting clarity on the promised 60-billion rand shareholder injection from National Treasury ahead of that tour.
Finance director Bongani Nqwababa says he is unable to provide details on the precise nature of the injection, which many of the credit rating agencies have indicated will be crucial to stabilising Eskom's rating, but he confirms that the transfer will be ‘front-loaded'. In other words, the bulk of the injection would flow in the first few years, as opposed to the initial plan, which would have seen National Treasury injecting the bulk of the money in the last two years of a five-year rolling injection.
This trend is also unlikely to be reversed in the current financial year, with Eskom expecting to burn between 135- and 140-million tons of coal during 2008/2009.
Much of the additional coal is also being sourced outside of the confines of the State-owned group's favourable long-term contracts with tied collieries, dramatically increasing the direct cost of primary energy and its associated logistics, and placing strain on its financial ratios.
Eskom CEO Jacob Maroga:
Aim Resources attributed its funding woes to the current zinc prices and forecasts, which made it difficult for zinc projects to secure funding, as well as a downturn in both debt and equity markets.
The company said on Thursday that spot zinc prices had fallen "well below" the level required to provide an adequate return, and below the predicted cash break-even point.
Raids on steel companies may have unearthed cartel
In political news:
EU to widen Zimbabwe sanctions say diplomats
Edited by: Shannon de Ryhove© Reuse this Comment Guidelines
Other Intellectual Property Law News
Updated 3 hours ago Despite an uptick in year-on-year manufacturing output, the outlook for the manufacturing sector remained subdued, banking group Nedbank’s economic unit said on Tuesday. Against the market consensus of a 2.1% contraction and a 3.3% decline in September, Statistics...
Updated 5 hours ago Airline passenger demand was expected to rise more than 30% in the next four years, the latest report by the International Air Transport Association (Iata) revealed on Tuesday. The Iata Airline Industry Forecast 2013 to 2017 showed that, by 2017, there would be a...
Updated 5 hours ago Following her surprise resignation earlier this week, ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita has been appointed chairperson and nonexecutive director of the JSE, replacing outgoing chairperson Humphrey Borkum. Nyembezi-Heita, who had served as...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.