Thursday, June nineteen, 2008.

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

Making headlines today:

The National Energy Regulator of South Africa on Wednesday granted Eskom an average tariff increase of 27,5% for the 2008/2009 financial year, which included the 14,2% it had already granted the state-owned power utility in December last year.

This would allow Eskom to recover primary energy costs of 2,8-billion rand, but disallowed 12,5-billion rand of the 15,5-billion rand that it had requested, Nersa chairperson Collin Matjila said.

If current economic conditions were to continue, the regulator projected electricity tariff increases of between 20% and 25% for the next three years.

South Africa's Treasury wanted to ensure power utility Eskom was restored to financial health in the shortest time to prevent electricity shortages, Finance Minister Trevor Manuel said on Wednesday.

The Treasury has already agreed to loan the company 60-billion rand over five years to help it fund a 350-billion rand capital expenditure programme to boost capacity, and Manuel said negotiations were ongoing.

A borrowing requirement for Eskom of 148-billion rand should be "fairly easily" absorbed in capital markets because government was significantly reducing its borrowing, he added.

Anglo American has evaluated possible major mergers amid a consolidation wave in the mining sector, but has not found anything that would create shareholder value, CEO Cynthia Carroll said this week.

She believed that there would be further consolidation, she said during a question period after a speech at London's Royal Institute of International Affairs.

Responding to a question about China taking a stake in rivals like Rio Tinto and speculation that Brazil's Vale may be interested in buying Anglo, she said the company was regularly looking, refreshing and assessing what it meant to be independent, and what the embedded value potential is in Anglo.

Also making headlines:

2010 World Cup faces fuel shortages
Alec Erwin announces equity injection for Eskom
Omnia invests 29-million rand in Zambia jatropha research
Latest power tariff increase to cost South Africa's mining industry 1,6-billion rand
BRC DiamondCore seeks court order against former BEE partner
And, Rio Tinto approves 667-million dollars for Australian iron-ore expansion

In political news:

Campaigning rockers Bono & Bob Geldof challenge Nicolas Sarkozy over Africa
Archbishop Desmond Tutu urges US Senate to pass AIDS bill
ANC sends observers to Zimbabwe
And, Thyssenkrupp cleared in German arms deal probe

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