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Friday, November 20, 2009.

From Creamer Media in Johannesburg, I'm Lindsey Berry.

Making headlines today:

Chief officer for generation at State-owned power utility Eskom, Brian Dames, has confirmed that the award of some smaller contracts for the group's 111-billion-rand Kusile power plant, being built in Mpumalanga, has been delayed. This will affect the project's overall delivery schedule by between 18 and 36 months.

It has been reported that the delay is linked to the utility's review of its tariff application to the National Energy Regulator of South Africa.

Dames says that Eskom doesn't want to "over commit" itself in the context of lower demand levels, which might also be relatively modest after the recession.

This is owing to the fact that Rio Tinto Alcan has decided to terminate plans for a proposed 2,7-billion-dollar aluminium smelter project, in the Eastern Cape.

In addition, discussions with potential independent power producers are progressing, which could enable South Africa to meet some of its supply-side objectives, even if cash-strapped Eskom decides to delay the implementation of Kusile.

Arms procurement agency Armscor has suspended its CEO, Sipho Thomo.

Chairperson of the board, Popo Molefe, says that Thomo was suspended with full pay after he and the board failed to reach an amicable agreement to end his 10-year tenure at the head of Armscor.

Molefe says that the suspension will continue pending an investigation of disciplinary charges, and the convening of a disciplinary hearing if there is evidence which justifies that.

He says that the board hopes to deal with matter as expeditiously as possible so as to avoid wasting public funds.

Also making headlines:

Volkswagen South Africa is set to double its exports and increase production by 50%.
Eskom's summer maintenance programme gathers momentum.
India expects investment in South Africa to remain strong.
And, Namibia seeks investment in manufacturing and infrastructure.

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