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Monday, March 9, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

Energy and chemicals group Sasol has reduced its capital expenditure forecast by 40%, or 28-billion-rand, for the next three years. This is as it forecast an extended period of suppressed and volatile market conditions.

On Monday, Sasol reported that the decision had been taken in line with its focus on cost containment and cash preservation. The company had announced in January that it was reviewing its 70-billion-rand, three-year project pipeline in light of deteriorating market conditions.

The company also reported that its gearing had been reduced. CEO Pat Davies said that Sasol's deleveraged balance sheet positioned the company favourably to weather the global economic crisis.

But CFO Christine Ramon said that the company didn't expect oil and product prices to recover in the short-term. Sasol had, thus, renewed its focus on cost containment, improving operational efficiencies, working capital improvement and capex reprioritisation.

However, she said that the group was continuing with the pre-feasibility and feasibility studies relating to its large growth projects.

Zambia has launched a 400-million-dollar power project on the Kariba North Bank which will add 360 megawatts to the country's existing power generation capacity.

The Kariba North Bank expansion is being constructed by China's Sinohydro Corporation to expand the power station's generation capacity to a total of 1 080 MW.

China's Export and Import Bank provided 85% of the funding. The Development Bank of South Africa provided the remaining 15%.

President Rupiah Banda said that the government would spend 2-billion-dollars in the long term to raise generation capacity for electric power.

Also making headlines:

Pipe manufacturer Rare lifts its interim headline earnings by over 50%.
Canada's Artumas Group says a Tanzanian power project will cost 700-million-dollars.
South Africa enhances its space participation with the launch of the national space policy.
And, the University of Pretoria says the economic downturn shouldn't diminish the demand for engineers.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.