Feb 22, 2012
R700m injection for DenelBack
Denel|Public Enterprises|Richtersveld Mining Company|Alexander Bay|Northern Cape|Malusi Gigaba|Pravin Gordhan|Riaz Saloojee
The recapitalisation of Denel Saab Aerostructures (DSA) would take effect in the new financial year (2012/13), he said.
DSA is a designer and manufacturer of complex metallic and composite plane parts for the military and commercial aviation sector.
In a press briefing late last year, Public Enterprises Minister Malusi Gigaba said DSA was the major contributor to Denel's losses, incurring a R237-million loss in 2010/11.
Gigaba tasked newly-appointed group CEO Riaz Saloojee in November with concluding the process of turning around DSA.
Gordhan also announced the allocation of R350-million to mining parastatal Alexkor, which mines diamonds on land and under water in the Alexander Bay area of the Northern Cape.
According to the 2012 Estimates of National Expenditure, tabled by Gordhan on Wednesday, the R350-million "is earmarked for transfer to Alexkor to settle any outstanding unfunded obligations under the Alexkor/Richtersveld community deed of settlement, including the tax obligation of R69.9-million".
Following a 2007 settlement with the Richtersveld community, the company's land mining rights were transferred to the Richtersveld Mining Company (RMC) in March 2011.
RMC and Alexkor formed a joint venture in which Alexkor holds a 51% stake.
The document says pumping capital into both Denel and Alexkor will dramatically push up the Public Enterprises department's spending in the coming financial year.
The department was expected to spend R1.25-billion in 2012/2013, compared to R353.3-million in 2011/2012.
This would drop back down to about R200-million leading up to 2015.
Edited by: SapaComment Guidelines
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...
In support of the South African government’s mandate to create more jobs and promote sustainable development, multilevel marketing company Amway’ business model aims to assist government in easing the startup of business and encourage an entrepreneurial mindset...