Jul 18, 2008
Daily podcast – July 18, 2008Back
Africa|CoAL|Diesel|Eskom|Flow|Mining|PROJECT|Projects|Resources|Road|Africa|Burkina Faso|Mine Development|Energy|Flow|Logistics|Maintenance|Steel|Power|Diesel
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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
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Other Intellectual Property Law News
Pedestrian Door Solutions specialists, ASSA ABLOY Entrance Systems South Africa (Pty) Ltd., have supplied and installed a number of Besam entrance systems to medical facilities both in South Africa and outside the country’s borders that offer fast, convenient and...
Rubber-in-compression couplings, from Renold Hi-Tec, provide fail-safe operation on applications such as mine winders, hoists, draw-works on drilling rigs and industrial overhead cranes. The intrinsically fail-safe construction of the couplings protects both people...
Engineering, management and specialist technical services company Aurecon achieved a first in Tshwane in 2011 when its Lynnwood Bridge Office Park building, situated just off of the N1 highway, achieved a 4 star GreenStar SA – [Office Design v1, Office Design v1]...
Updated 13 minutes ago South Africa's National Union of Mineworkers (NUM) said on Friday it would oppose any attempt by cash-strapped power utility Eskom to sell assets, especially its finance company which helps provide home loans to employees. "The NUM will never support any decision...
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This Week's Magazine
The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
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Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.