Cape Times 2024-05-24

PETMIN-owned Tendele Coal Mining’s bid to resume and expand mining at its majority-controlled Somkhele coal mine in KwaZulu-Natal has sparked controversy with surrounding communities again. Community and environmental groups around the Somkhele mine are complaining about the company’s disregard for due process in the compilation of data for an environmental impact assessment (EIA), as well as in the relocation and resettling of displaced villagers. Somkhele, ultimately controlled by Petmin which de-listed from the JSE in 2017, is South Africa’s biggest mine for metallurgical anthracite, with capacity to produce 1.2 million tons of hard coal. The mine, which had depleted its life of mine, stopped operations in 2022. The resumption of operations hinged on an expansion project which, however, was opposed by communities around the mine, sparking off litigation actions…

US TREASURY Secretary Janet Yellen said yesterday she was concerned by a threat from Israel to cut off Palestinian banks from their Israeli correspondent banks, a move that would close a critical lifeline for the Palestinian economy. Yellen told a news conference ahead of a G7 finance ministers meeting beginning on Friday that the US and its partners “need to do everything possible to increase humanitarian assistance to Palestinians in Gaza, to curtail violence in the West Bank, and to stabilise the West Bank’s economy.” She said she would bring up the issue at the meeting of the Group of seven industrial democracies in the lakeside resort town of Stresa in northern Italy. “I expect other countries to express concern about the impact of such a decision on the…

IN THIS WEEK’S Personal Finance Saturday Page, we look at how the Pension Funds Adjudicator can help with unpaid pension contributions. Muvhango Lukhaimane, the Pension Funds Adjudicator, has recourse and can order employers to pay benefits that are due, and this order can be executed by a sheriff of the court. On investing offshore, we answer whether investors should wait for the rand to strengthen before taking their money offshore. We also look at the world of crypto- currency, and why there are fewer bitcoin billionaires than you think. South African learning institutions have been plagued with corruption for years. In this week’s edition, we look at how corruption at these learning institutions is much worse than anyone anticipated. If you have any questions on investment, tax, and insurance,…

PRICEWaterhouseCoopers (PwC) South Africa has called for sustain- able solutions to adequately feed the South African population following evidence that households were buying less food as their spending power declines alongside elevated inflation. In its fifth South Africa Economic Outlook report for 2024, PwC said failure to find solutions around food security could be problematic as the population is expected to grow by another four million people by the year 2030. PwC South Africa chief economist, Lullu Krugel, said South Africans were buying less food, because of pressure on household finances. “As a society, we need to make better use of our resources to ensure that food production is increased and that improved nutrition is available to more people at affordable prices,” Krugel said. “This requires agricultural players to produce…

FINANCIAL markets in South Africa retreated yesterday after the US Federal Reserve (Fed) remained hawkish about tapering monetary policy as inflation in the world’s largest economy was forecast to remain stubborn above the target range for longer. The JSE all share index was 0.6% lower at 79 024 index points while the rand plunged by 1% to R18.45 against the US dollar by 5pm yesterday on the back of the strengthening greenback. The JSE and the rand also weakened as the US economy showed resilience as the S&P Global Purchasing Managers’ Index (PMI) smashed expectations and pointed to robust economic growth in the US private sector activity and a fresh acceleration in inflationary pressures in May. However, it was the Federal Open Market Committee (FOMC) minutes that had driven…

LONDON Stock Exchange-listed Petra Diamonds is the world’s largest producer of rough diamonds by value and is focused on the highest margin section of the diamond pipeline. With South African miners susceptible to production disruptions from rotational power cuts by Eskom, Petra Diamonds has turned to independent renewable energy suppliers while also helping to curb emissions from operations. The company announced yesterday that it had entered into long-term Power Purchase Agreements (PPAs) for the procurement of wheeled renewable energy for its Cullinan and Finsch diamond mines with Etana Energy, a licensed South African energy trader. Petra Diamond CEO, Richard Duffy, said the agreements signed by the company will see Etana supplying each of Petra Diamonds’ two mines in South Africa with up to 72% of the expected load requirement from…