By Damon Vis-Dunbar
23 March 2009
A South African judicial ruling has opened the door for two plaintiffs to seek compensation for alleged expropriation of their mineral rights, in a case that echoes the complaints made by European investors in a pending international arbitration against South Africa under bilateral investment treaties.
The judgment* comes in response to claims lodged with the Pretoria High Court, in which the plaintiffs (Agri S.A. and AM van Rooyen) argue that their rights to coal and clay were expropriated without compensation in 2004 under the Minerals and Petroleum Resources Development Act (MPRD).
The MPRD Act is intended to boost the black population’s participation in the mining sector, and forms part of a wider effort by the South African government to address the country’s racial inequalities rooted in a legacy of apartheid.
Under the Act, private ownership of mineral rights was replaced with a system of licenses offered by the government. Companies who held mineral rights under the old regime were given an opportunity to apply for licenses under new regime; however, mining companies complain that so-called new order rights are not equivalent in value to the rights they enjoyed previously.
The Ministry of Minerals and Energy sought to dismiss the lawsuits by Agri S.A. and AM van Rooyen on the ground that they fail to provide sufficient facts to support their claims.
In 6 March 2009 ruling, however, the High Court has rejected the Ministry's charge that the plaintiffs' claims are "vague", allowing the claims to proceed to the merits stage.
Wednesday, 25 March 2009
Trafficking cops postponed
Tue, 24 Mar 2009 17:02
The case against four top cops arrested on charges related to drug trafficking was postponed in the Roodepoort Magistrate's Court on Tuesday, police said.
Crime intelligence spokesperson Senior Superintendent Tummi Golding said the case was postponed to Wednesday for bail application.
Senior Superintendent Dumisane Jwara, 45, Captain Landro Mokgosani, 40, Captain Victor Julie, 38, and Captain Sakhepi Caiphus Shange, 43, were in the meantime detained in the Johannesburg Central High Risk Facility Unit.
"The reason they were detained at the high risk facility unit was because of the merit of the case," Golding said.
The case against four top cops arrested on charges related to drug trafficking was postponed in the Roodepoort Magistrate's Court on Tuesday, police said.
Crime intelligence spokesperson Senior Superintendent Tummi Golding said the case was postponed to Wednesday for bail application.
Senior Superintendent Dumisane Jwara, 45, Captain Landro Mokgosani, 40, Captain Victor Julie, 38, and Captain Sakhepi Caiphus Shange, 43, were in the meantime detained in the Johannesburg Central High Risk Facility Unit.
"The reason they were detained at the high risk facility unit was because of the merit of the case," Golding said.
ANC amends tribunal views
Tue, 24 Mar 2009 16:45
The African National Congress said on Tuesday its view on establishing a media tribunal was "shifting".
Spokesperson Jessie Duarte said it was "not the time or place for a tribunal".
Duarte was speaking at a debate on political party's media strategies ahead of the upcoming national elections.
The ANC had proposed a media tribunal at its Polokwane conference in December 2007.
Duarte said the proposal was "still on the table" but that views about the setting up of a media tribunal were shifting.
The party was, however, still going ahead with earlier proposals to set up an ANC newspaper and had started the process with newsletters aimed at particular communities.
Duarte said the media in South Africa was historically hostile towards the ANC and still remained so.
The African National Congress said on Tuesday its view on establishing a media tribunal was "shifting".
Spokesperson Jessie Duarte said it was "not the time or place for a tribunal".
Duarte was speaking at a debate on political party's media strategies ahead of the upcoming national elections.
The ANC had proposed a media tribunal at its Polokwane conference in December 2007.
Duarte said the proposal was "still on the table" but that views about the setting up of a media tribunal were shifting.
The party was, however, still going ahead with earlier proposals to set up an ANC newspaper and had started the process with newsletters aimed at particular communities.
Duarte said the media in South Africa was historically hostile towards the ANC and still remained so.
Wednesday, 28 January 2009
India to build Cameroon power units in $250 mln deal
YAOUNDE, Jan 14 (Reuters) - Indian engineering firm Angelique International will build two hydro power plants in Cameroon as part of a 125 billion CFA francs ($251.5 million) aid deal, the central African country said late on Tuesday.
State-owned Export-Import Bank of India will loan the money to Cameroon, the second such deal signed between the Gulf of Guinea nation and Angelique in the past two months.
As well as power plants, the money will finance drinking water and sanitation projects.
Most of Cameroon's electricity is generated by hydroelectric power stations, but droughts can leave the country facing electricity shortages.
Cameroon's Water and Energy Minister Jean Bernard Sindeu said the deal signed on Tuesday was "a welcome relief for the millions of people living in rural Cameroon who are in dire need of electricity, drinking water and sanitation facilities."
Angelique was due to start work on the projects in July, Sindeu said.
Details of the loan repayment schedule and interest rate have yet to be finalised.
State-owned Export-Import Bank of India will loan the money to Cameroon, the second such deal signed between the Gulf of Guinea nation and Angelique in the past two months.
As well as power plants, the money will finance drinking water and sanitation projects.
Most of Cameroon's electricity is generated by hydroelectric power stations, but droughts can leave the country facing electricity shortages.
Cameroon's Water and Energy Minister Jean Bernard Sindeu said the deal signed on Tuesday was "a welcome relief for the millions of people living in rural Cameroon who are in dire need of electricity, drinking water and sanitation facilities."
Angelique was due to start work on the projects in July, Sindeu said.
Details of the loan repayment schedule and interest rate have yet to be finalised.
Angola's double-digit growth record to end -analysts
By Henrique Almeida
LUANDA, Jan 27 (Reuters) - Angola's economy could grow less than 6.3 percent in 2009, well below the double-digit growth that has sustained the oil-producing African nation since 2002, analysts said on Tuesday.
Angola, which rivals Nigeria as sub-Saharan Africa's biggest oil producer, has averaged 15 percent a year GDP growth since the end of a civil war in 2002, making it one of the world's fastest growing economies.
It has lured billions in foreign investment.
But Alves da Rocha, a leading Angolan economist, said weakness in the global economy and a sharp drop in oil prices should put the brakes on growth and hamper government plans to rebuild the country and improve the lives of ordinary Angolans.
LUANDA, Jan 27 (Reuters) - Angola's economy could grow less than 6.3 percent in 2009, well below the double-digit growth that has sustained the oil-producing African nation since 2002, analysts said on Tuesday.
Angola, which rivals Nigeria as sub-Saharan Africa's biggest oil producer, has averaged 15 percent a year GDP growth since the end of a civil war in 2002, making it one of the world's fastest growing economies.
It has lured billions in foreign investment.
But Alves da Rocha, a leading Angolan economist, said weakness in the global economy and a sharp drop in oil prices should put the brakes on growth and hamper government plans to rebuild the country and improve the lives of ordinary Angolans.
RPT-FEATURE-China marches on in Africa despite downturn
By Alistair Thomson
DAKAR, Jan 28 (Reuters) - Chinese businessmen are taking a long-term view and pursuing strategic expansion in Africa even though China's multiplying investments on the continent have lost some lustre in the global downturn.
Beijing and Chinese companies have pledged tens of billions of dollars to Africa in loans and investments mostly to secure raw materials for the world's fastest-growing large economy.
That long-term interest remains intact, despite a worldwide economic slump that has hit China's exports to the rich world and a sharp decline in Africa's mineral shipments to China.
China-Africa trade has surged by an average 30 percent a year this decade, soaring to nearly $107 billion in 2008.
DAKAR, Jan 28 (Reuters) - Chinese businessmen are taking a long-term view and pursuing strategic expansion in Africa even though China's multiplying investments on the continent have lost some lustre in the global downturn.
Beijing and Chinese companies have pledged tens of billions of dollars to Africa in loans and investments mostly to secure raw materials for the world's fastest-growing large economy.
That long-term interest remains intact, despite a worldwide economic slump that has hit China's exports to the rich world and a sharp decline in Africa's mineral shipments to China.
China-Africa trade has surged by an average 30 percent a year this decade, soaring to nearly $107 billion in 2008.
Monday, 19 January 2009
Sasol Discovers Antitrust Violations, Triggers Probes
By Carli Lourens
Jan. 19 (Bloomberg) -- Sasol Ltd., South Africa’s largest fuel producer, triggered cartel probes into the country’s fuel and piped-gas industries after discovering violations of antitrust law during an internal review and notifying regulators.
“We hope there will be more competitive prices” after the probes, which will be “long and detailed,” said Simon Roberts, an economist at South Africa’s Competition Commission, in an interview today. Pricing of fuels such as diesel, not regulated by the government at retail level, will be scrutinized, he said.
All members of the South African Petroleum Industry Association, or Sapia, will be investigated, Roberts said. These members are BP Southern Africa Ltd., Shell South Africa Ltd., Chevron South Africa Ltd., Total South Africa Ltd., Engen Ltd. and state-owned PetroSA, according to the industry body’s executive director, Avhapfani Tshifularo.
“I’m not aware of any cartel,” Tshifularo said by phone today, adding that the issues raised by Sasol have yet to be fully studied. None of the oil refiners could comment immediately when contacted by Bloomberg News today.
Sasol, the world’s biggest producer of motor fuel made from coal, is cooperating with the Competition Commission, according to a statement from the Johannesburg-based company. Two violations were found at its gas unit, and findings of unlawful conduct at its Sasol Nitro division are now more likely, it said. Some activities at the Sasol Oil subsidiary may also be viewed as anticompetitive, the company said.
‘Sizeable’ Penalty?
The commission is in talks with Sasol over a settlement, and a “sizeable” administrative penalty may be levied in relation to the two Sasol Nitro issues, Roberts said.
The two complaints may now be considered valid after the review uncovered additional information, Sasol said. They concern a probe of trading in phosphoric acid and one of several complaints by a company called Nutri-Flo.
Sasol, which was fined 318 million euros ($412 million) in October by European Union regulators for allegedly participating in a wax cartel, unearthed the violations after the start in July of an internal review of compliance with competition laws. The company said today it was granted leniency for the violations at the gas unit after reporting the acts to the commission.
“The intense scrutiny of the review initiated last year is unfortunately indicating areas of concern,” Chief Executive Officer Pat Davies said in the statement. “Our values do not leave any room for unethical behavior.”
Shares Retreat
Sasol fell 13.01 rand, or 4.5 percent, to 276.99 rand in Johannesburg trading, rebounding from a drop of as much as 6.6 percent. The stock has slid 13 percent in the past year, cutting the company’s market value to 176 billion rand ($17 billion).
“Because Sasol is the whistleblower, there is a smaller chance that they’ll incur the maximum penalty,” Nedcor Securities analyst Mohamed Kharva said by phone today from Cape Town. “There may still be a fine, but it’s very early to say what will be the impact.”
Jan. 19 (Bloomberg) -- Sasol Ltd., South Africa’s largest fuel producer, triggered cartel probes into the country’s fuel and piped-gas industries after discovering violations of antitrust law during an internal review and notifying regulators.
“We hope there will be more competitive prices” after the probes, which will be “long and detailed,” said Simon Roberts, an economist at South Africa’s Competition Commission, in an interview today. Pricing of fuels such as diesel, not regulated by the government at retail level, will be scrutinized, he said.
All members of the South African Petroleum Industry Association, or Sapia, will be investigated, Roberts said. These members are BP Southern Africa Ltd., Shell South Africa Ltd., Chevron South Africa Ltd., Total South Africa Ltd., Engen Ltd. and state-owned PetroSA, according to the industry body’s executive director, Avhapfani Tshifularo.
“I’m not aware of any cartel,” Tshifularo said by phone today, adding that the issues raised by Sasol have yet to be fully studied. None of the oil refiners could comment immediately when contacted by Bloomberg News today.
Sasol, the world’s biggest producer of motor fuel made from coal, is cooperating with the Competition Commission, according to a statement from the Johannesburg-based company. Two violations were found at its gas unit, and findings of unlawful conduct at its Sasol Nitro division are now more likely, it said. Some activities at the Sasol Oil subsidiary may also be viewed as anticompetitive, the company said.
‘Sizeable’ Penalty?
The commission is in talks with Sasol over a settlement, and a “sizeable” administrative penalty may be levied in relation to the two Sasol Nitro issues, Roberts said.
The two complaints may now be considered valid after the review uncovered additional information, Sasol said. They concern a probe of trading in phosphoric acid and one of several complaints by a company called Nutri-Flo.
Sasol, which was fined 318 million euros ($412 million) in October by European Union regulators for allegedly participating in a wax cartel, unearthed the violations after the start in July of an internal review of compliance with competition laws. The company said today it was granted leniency for the violations at the gas unit after reporting the acts to the commission.
“The intense scrutiny of the review initiated last year is unfortunately indicating areas of concern,” Chief Executive Officer Pat Davies said in the statement. “Our values do not leave any room for unethical behavior.”
Shares Retreat
Sasol fell 13.01 rand, or 4.5 percent, to 276.99 rand in Johannesburg trading, rebounding from a drop of as much as 6.6 percent. The stock has slid 13 percent in the past year, cutting the company’s market value to 176 billion rand ($17 billion).
“Because Sasol is the whistleblower, there is a smaller chance that they’ll incur the maximum penalty,” Nedcor Securities analyst Mohamed Kharva said by phone today from Cape Town. “There may still be a fine, but it’s very early to say what will be the impact.”
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