JOHANNESBURG, Sept 14 (Reuters) – South Africa’s government
has approved a support package for troubled state-run power
utility Eskom, which will include the company raising over $4
billion in additional debt and receiving an equity injection
from the state.
The announcement highlighted the gravity of the situation
facing Eskom, which provides virtually all of the power to
Africa’s most advanced economy but has massive funding issues as
its costs are running way ahead of its revenues.
JOHANNESBURG, Sept 12 (Reuters) – South African-focused
bullion producer Sibanye Gold said on Friday it was
starting talks with unions and other stakeholders about possible
job cuts at its Cooke 4 mine to boost profits and productivity.
Sibanye said it had entered “into section 189 consultations
on the future of the Cooke 4 mine” – a reference to a legal
requirement that companies must talk with organised labour and
other affected parties in advance about potential lay offs.
JOHANNESBURG/LONDON (Reuters) – Africa’s biggest bullion producer AngloGold Ashanti is to restructure its mining and exploration operations outside South Africa under a new British-based company and aims to raise $2.1 billion in a rights issue.
The move announced by the company on Wednesday mirrors those of other large mining groups seeking to reduce exposure to South Africa, the vast resources of which come with the risk of a volatile labor market, policy uncertainty, dizzying shaft depths and soaring costs.
JOHANNESBURG, Sept 8 (Reuters) – Sasol is eyeing
potential expansion into Angola, Ghana and Tanzania but
Mozambique remains its immediate focus in Africa, the South
African petrochemicals company’s chief executive said on Monday.
Sasol reported a 14 percent increase in full-year earnings
on Monday, boosted by higher chemical prices and a weaker rand
but still short of analysts’ expectations.
JOHANNESBURG, Sept 3 (Reuters) – Swiss-based miner and
commodities trader Glencore still wants to sell its 25
percent stake in South African platinum producer Lonmin
at “the right time,” its chief executive said on Wednesday.
There has been some market speculation in recent weeks that
Glencore was considering raising its stake in Lonmin, given the
fall in the platinum miner’s share price this year.
JOHANNESBURG, Aug 28 (Reuters) – World no. 2 platinum
producer Impala Platinum said on Thursday it had
launched a strategic review that could include a shift to
mechanisation in the wake of a five-month strike that hit its
Rustenburg operations in South Africa.
The company also warned of a tough time ahead on the cost
front as it struggles to ramp up production after the strike and
rolls out pay increases of up to 20 percent.
JOHANNESBURG/LONDON (Reuters) – The chief executive of platinum producer Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz) denied assertions from mining industry sources on Monday that the company aimed to cut around 5,700 jobs as part of a drive to restore profits after a five-month strike.
“There are no plans like that. Our priority is to ramp up production,” Chief Executive Ben Magara told Reuters. He did not provide further comment.
JOHANNESBURG/LONDON (Reuters) – Platinum producer Lonmin aims to cut around 5,700 jobs, about 21 percent of its South African workforce, as part of a drive to restore profits after a five-month wage strike this year, sources familiar with the plan said.
The plan would see the closure of four to six of the company’s 11 shafts, the two mining industry sources, one in London and the other in Johannesburg, told Reuters.
JOHANNESBURG (Reuters) – Surviving sickness can make you stronger.
So while a western corner of Africa writhes in the deadly grip of the Ebola virus, there are signs this emergency may serve as a wake-up call to strengthen spending and investment on public healthcare in the world’s least developed continent.
“If anything, I think it is teaching us something,” Mustapha Sidiki Kaloko, the African Union’s Commissioner for Social Affairs, told reporters in Addis Ababa this month.
JOHANNESBURG, Aug 14 (Reuters) – The experience of Harmony
Gold provides a stark warning for investors and metals
traders banking on South Africa’s platinum sector making a swift
recovery from the crippling five-month strike that ended in
The world’s top three platinimum producers, Anglo American
Platinum (Amplats), Impala Platinum (Implats)
and Lonmin, boldly predicted in June that it would take
three months to restore production to pre-strike levels.