Monday, June nine, 2008

From Creamer Media in Johannesburg, I’m Shona Kohler

Making headlines today:

Credit-ratings agency FitchRatings, which has State-owned power utility Eskom on a "negative outlook", would probably move to downgrade the utility immediately if it failed to secure a 60% tariff increase from the regulator later this month, unless the announcement was associated with a clear signal from government that there would be further support beyond the R60-billion already promised.

However, FitchRatings director: corporates Alistair Crosbie did not concur with suggestions that a downgrade would limit the utility's access to international capital markets, given its position as a State-owned entity as well as its market dominance.

He agreed, though, that the pricing of any future debt raised by Eskom would be made more expensive should it be downgraded by Fitch and others.

Competition Tribunal chairperson David Lewis has added his voice to mounting concern about a provision regarding ‘personal liability' for directors in the Draft Competition Amendment Bill, which has been submitted to Parliament by Trade and Industry Minister Mandisi Mpahlwa.

Speaking at the second annual Competition Law, Economics and Policy in South Africa conference, held at the University of the Witwatersrand on Friday, Lewis said, "While I am happy to side with anyone who insists that no punishment is too great for a price fixer, there are strong grounds for fearing that criminalising the statute will not only fall foul of the Constitution, but will undermine the corporate-leniency programme, which has been the key instrument underpinning the Commission's recent successes in apprehending cartels".

Doubt over State-owned Eskom's ability to provide enough power to South Africa's mining sector will cause setbacks to platinum projects, and could prevent acquisitions in the sector, world number-two producer Impala Platinum said on Friday.

"I believe uncertainty in power supply will cause delays in projects, and could hamper acquisitions if no power is available," CEO David Brown told Mining Weekly Online.

On Thursday, he said that it would be difficult for the platinum mining industry to meet demand until there was a "clear plan" on power supply going forward.

Also making headlines:
Gauteng remains committed to growth target despite power woes Africa regional integration key to more trade
PetroSA to play leading role in SA's energy security plan
Australian antitrust regulator starts probe into BHP Rio Tinto bid
Sylvania says expansion projects on track to start output by year-end
And, Canadian explorer surges on review of coal prospect

In political news:

Hlope case to be considered in July
African NGOs urge regional arms freeze on Zimbabwe
Nigeria's senate approves new anti-graft chief
SA concludes economic talks with Spain
And, Zimbabwe suspends aid groups and detains diplomats

That’s a round-up of news making headlines today. For more on these and other stories, visit engineeringnews.co.za, miningweekly.com and polity.org.za