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Sunday, 05 August 2018 20:04

Mail & Guardian reports that plans to revive Lily Mine have finally been cleared after the liquidation application brought against its sister mine, Barbrook, was withdrawn on Thursday, clearing the way for a takeover of the parent company, Vantage Goldfields, by the Siyakhula Sonke Corporation (SSC).

The Barbrook creditors rendered services to maintain the mine for the past two years but have not yet been paid, and last week a meeting to adopt the business rescue plan was disrupted when Lomshiyo residents demanded further consultation.

The meeting was supposed to secure the creditors’ approval for the deal between SSC and Vantage Goldfields.

A R320-million joint investment by the Industrial Development Corporation (IDC) and SSC, supported by Mineral Resources Minister Gwede Mantashe, is meant to restart mining operations.

Operations at Lily Mine and Barbrook, near Barberton in Mpumalanga, came to a halt after a pillar collapsed underground three years ago, which trapped and killed three workers: Pretty Mabuza, Yvonne Mnisi and Solomon Nyarenda.

Vantage Goldfields was then placed under business rescue.

This year Koch applied for Vantage Goldfields to be liquidated on behalf of Stevridge Mining and Rock Mining Machines. But the company’s business rescue practitioner, Rob Deveraux, has since secured a buyout from SSC, a majority black-owned mining firm.

In his latest attempt to stall the deal, Koch wrote to Deveraux and cited an anonymous report from a mining consultant, claiming that repairs to the tailings dam and tests from a reputable laboratory on the state of the mine are incomplete.

This report was used to argue that the deal could not be concluded until the report’s findings were addressed.

Koch also claims that Deveraux had purposefully removed the voting rights of the creditors to prevent them derailing the deal.

“In order to protect the interest of the creditors it was elaborated to bring an urgent application to interdict this meeting from taking place,” Koch wrote to the rock drilling and maintenance creditors at Barbrook.

Koch has been accused of deliberately stifling the takeover because he previously consulted for Galane Gold, whose bid to buy the mine failed. Now he has accused Deveraux of lying about the money raised from the IDC and demanded proof of the approved loan.

Deveraux hit back in his letter to Koch, disputing his claims of bias: “I have always acted independently and in the interest of the company. If this [my integrity] was such a concern, you have had 17 months to address it. Clearly it was not a concern to you when Galane was looking to purchase the mine.”

Finally, in a shock capitulation by Koch on Thursday, the liquidation application was withdrawn. The meeting with Lomshiyo residents is now expected to go ahead on Monday, when the deal will be finalised.

The original of this report by Govan Whittles appeared on page 19 of Mail & Guardian of 3 August 2018

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Wednesday, 01 August 2018 10:54

The Star reports that electricity users should brace for load shedding that will last indefinitely as wage negotiations between Eskom and its protesting employees hit a brick wall.

Eskom spokesperson Khulu Phasiwe conceded that the industrial action was a result of Eskom and the National Union of Mineworkers (NUM) not reaching an agreement at the Central Bargaining Forum on Friday, where the unions planned to give feedback on the wage offer that Eskom gave two weeks ago.

“The parties met and deliberated on the wages and the additional demand for bonuses, and jointly resolved to reconvene on August 3 for further talks. Eskom is disappointed that the employees, through their trade unions, resorted to disrupt operations today (Monday),” said Phasiwe.

He warned the employees that the power utility was designated as an essential-service provider, and as such, employees were prohibited from participating in any form of industrial action that would further hurt the country, its people and the economy.

The service provider has since issued a load shedding schedule on its website and municipal platforms. “Due to the current industrial action, people are not at their workstations and others have been intimidated through acts of sabotage and obstruction of access controls, so that has affected productivity and operations at the various Eskom sites.

“We have since implemented a ‘supply and demand’ system by checking the hourly demand and capacity of power utilised. We also warn that from this evening (Tuesday), the risk of load shedding will be high for an unspecified period,” said Phasiwe.

The utility has advised that load shedding will be conducted from stage 1 to 4, depending on the capacity shortage. It said load shedding was being implemented as a last resort to protect the power system from total collapse or blackout.

“Eskom has sought the services of the Commission for Conciliation, Mediation and Arbitration to facilitate the engagement between the organisation and union leaders to resolve the impasse.

“We are hopeful that all parties will put South Africa first as we endeavour to find an amicable solution.”

The SAPS had been mobilised to maintain order and to enable safe access to power stations as these were national key points, Phasiwe added. NUM is demanding that Eskom pay bonuses for the financial year 2017/18.

The union’s spokesperson, Livhuwani Mammburu, said the issue of bonuses was “a deal breaker”.  “We remain adamant that the bonus payment is a deal breaker. Without a bonus there will be no agreement as per our members’ mandate. We demand that Eskom pay the hard-working workers who averted load shedding their bonuses. As it is reflected in the performance score sheet, workers performed exceptionally well,” Mammburu said.

He added the performance contract presented in May indicated that workers had performed well and therefore deserved bonuses.

Among those who took to social media over the load shedding threat was former Eskom executive Matshela Koko, who said: “To my former colleagues at #eskom, loadshedding is a bad by all means & hurts all of us, especially if rumours of sabotage are true. Security of electricity supply means a lot to preserving jobs. Leaders must lead on both sides, including government. Arrogance is hurting all of us.”

The original of this report by Siphumelele Khumalo appeared on page 2 of The Star of 1 August 2018

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Monday, 30 July 2018 07:23

Sowetan reports that the National Union of Mineworkers (NUM) has slammed the Palabora Mining Company in Limpopo for prioritising profits ahead of workers’ safety.

This was after operations at the mine resumed on Wednesday, following the deaths of six workers a week ago.

The miners died after a conveyor belt caught fire while they were working underground on July 15.

One of the dead miners, Russel Warne, is yet to be buried. His funeral is scheduled to take place in Namaqualand in the Northern Cape tomorrow.

Operations had been shut down since the incident. However, the company issued a circular advising workers to return to work on Wednesday.

The circular, signed by the company’s general manager for human resources Maboko Mahlaole reads: “All operational areas will be on day shift, except for Magnetite Logistics and Vermiculite, which will resume normal shifts”.

Mahlaole wrote that their focus will be on safety, health and risk assessments as part of revitalising their safety measures.

But NUM provincial secretary Phillip Mankge accused the company of prioritising profits.

“It shows how cheap the company takes the lives of its employees.

“How does it expect workers to return to work when investigations into the deaths of their six colleagues have not been concluded?”

Yesterday, a mineworker who spoke on condition of anonymity said he had been ordered to return to work.

“My shift starts at 7am tomorrow [today], but I don’t know what we are going to be doing,” he said, adding that he still feared for his safety.

Philly Ntivana, chairman of the Association of Mineworkers and Construction Union, said the company only wanted to brief workers.

“The company wants to give workers first-hand information about the direction it wants to take. It is not like it wants people to return to work,” Ntivana said.

The company also allegedly refused to provide transport for workers to go and bury Warne.

Spokeswoman for the company, Lydia Radebe, said the lifting of the stand down was to focus on maintenance to ensure that safety assessments were done properly.

“The area where the incident happened is still the subject of investigation and nobody who is not part of the investigating team is allowed to be in that area,” said Radebe.

She said she still had to ascertain whether the company refused to provide transport to go and bury Warne.

Nathi Shabangu, spokesman for Mineral Resources Minister Gwede Mantashe, said he was surprised by the developments at the mine yesterday.

The original of this report by Frank Maponya appeared on page 11 of Sowetan of 27 July 2018

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Monday, 30 July 2018 04:28

The Sunday Independent Business Report writes that Eskom has forecast a 9 percent increase in the per-ton price of coal in the 2018/19 financial year, compared with the 3.8 percent increase in 2017/18, according to the power utility’s integrated report for the year to March.

The coal price appears to be a major component of Eskom’s costs, as the power utility looks set to rely on short- and medium-term coal contracts amid reduced production from so-called cost-plus mines. Elevated coal costs would typically increase Eskom’s overall primary energy costs and lift the utility’s tariff requirements.

Since the 2015/16 financial year, coal price increases have been on a roller-coaster ride, as they dropped from 19.2 percent in 2015/16 to 3.5 percent in 2016/17. In the year ended March 31, coal prices increased by 3.8 percent. In its latest annual report, Eskom has forecast a 9 percent jump in the coal price.

An almost double-digit increase in the coal price would be inconsistent with Eskom’s focus on cost containment. Chief executive Phakamani Hadebe has flagged the risk of rising primary costs. “Eskom ... faces several operational and strategic risks going forward. Operational risks involve rising primary energy input costs at reducing quality,” Hadebe said in the integrated report.

Eskom said most of the costplus mines required significant investment in order to increase production. The utility said it expected reduced output from the coal collieries until they were recapitalised. Eskom said it would recapitalise these coal mines only “where long-term benefits can be demonstrated”.

Eskom said it planned to spend R10.7 billion on financing expansion at the collieries over the next five years. “However, a two-to-three-year delay can be expected before the capital investment will result in increased output and productivity levels,” Eskom said.

Meanwhile, Eskom has decided to stop production at expensive power stations Hendrina, Grootvlei and Komati in the 2019/20 financial year.

“The board has decided that these stations will be ramped down to zero production and placed in lean preservation in 2019/20 to minimise the operating surplus and optimise generation costs,” Eskom said.

Eskom said the move was subject to it hitting plant availability of 80 percent, as well as an assessment of the impact on employees and local communities. It said that if demand was higher than current assumptions, the stations would be “recalled” to meet demand.

In the year ended March 31, plant availability rose from 77.3 percent to 78 percent. Hadebe said Eskom was on course to achieve plant availability of 80 percent in the current financial year.

Eskom said the timing of new build beyond the Medupi and Kusile power stations, as well as the decommissioning of older power stations, would depend on the Department of Energy’s updated integrated resource plan.

The original of this report by Siseko Njobeni appeared on page 20 of The Sunday Independent Business Report of 29 July 2018

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Thursday, 26 July 2018 14:57

The Star reports that public sector unions have welcomed the institution by Finance Minister Nhlanhla Nene of an independent investigation into the affairs of the Public Investment Corporation (PIC).

On Wednesday, the Public Service Association (PSA), a union representing 230 000 civil servants, said the probe was the only way to deal with allegations at the PIC and clear some of the misconceptions plaguing the crucial organisation.

PSA deputy general manager Tahir Maepa said: “We’ve been more on the side of procedure. “What we’re saying is that if the board has done an investigation and as a result of that were satisfied that Matjila did nothing wrong, then we don’t see any reason why these things should be rehashed.”

Maepa said the investigation would pave the way for the PIC, which manages public funds and assets in excess of R1.9 trillion, to continue with its work.

“The investigation will help everybody clear all these misconceptions. We can’t continuously be discussing allegations that are not tested. We welcome the minister’s wisdom to institute the investigation,” Maepa said.

Cosatu spokesperson Sizwe Pamla said an independent inquiry was a good step, but maintained what was happening at the PIC was a fight between elites over workers’ money.

“An independent inquiry is a good step to ascertain what has really happened.

“Our standing is that it is a battle between the elite over who has control of the workers.

“We are interested in (finding out) who has been doing what,” Pamla said

Earlier this week, Cosatu, the country’s biggest trade union federation, said it was consulting with its affiliates regarding attempts to remove Matjila.

Nene announced yesterday that he met and informed the PIC’s board of directors that he was instituting an inquiry and a forensic investigation into the body’s affairs and allegations against some executives.

Nene, who did not specify which executives were being probed, said the move was aimed at looking into “governance issues” at the PIC.

“Further details on the independent inquiry, including the name of its head as well as its terms of reference, will be announced in due course,” said Nene.

PIC chief executive Dan Matjila has been embroiled in controversy for months. A whistle-blower alleged that he used the PIC’s money to fund a project in which his girlfriend was involved.

An internal audit instituted by the funder cleared Matjila.

But opposition parties believe an independent investigation was needed.

DA spokesperson on finance David Maynier said the inquiry would also give those implicated in wrongdoing a chance to have a say in the matter.

Maynier said he hoped the inquiry and forensic investigation would “get to the bottom of the various allegations and begin to restore public trust in the PIC”.

“However, there is now a risk that the outcome of the independent inquiry may be used as an excuse to put important legislation, aimed at strengthening governance and boosting transparency at the PIC, on ice in Parliament,” Maynier said.

UDM president Bantu Holomisa said Nene’s instruction for an independent inquiry into the PIC’s affairs showed that “there must be prima facie evidence of wrongdoing”.

“We are also surprised that the CEO has in fact not been suspended. This smacks of favouritism and protection of a person that might be on the wrong side of the law once the commission gets to work.

“The UDM will consult with its lawyers on what the next step will be on our side, given that we have taken the minister to court,” Holomisa said.

The original of this report by Sibongile Mashaba & Bongani Nkosi appeared on page 5 of The Star of 26 July 2018

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