Star 2024-02-13

WITH THE RACE to electric vehicles hotting up, Anglo American is broadening its exposure into electric battery manufacturing after signing a memorandum of understanding to explore opportunities with the Finnish government. The diversified resources group believes that “low carbon technologies, such as renewable power generation infrastructure and electric vehicles (EVs) powered by batteries and fuel cells (will) generate additional demand for many metals”, including battery metals. While prices of some metals used in the manufacture of vehicles such as platinum have been volatile, spelling uncertainty for PGM producers such as Anglo American, Impala Platinum and Sibanye-Stillwater, the uptake of hybrid vehicles has provided some respite. Anglo American and Sibanye-Stillwater have also started to bump up their exposure in lithium mining. This has led to Anglo American and Finnish Minerals Group…

Sapa says it will co-operate with the envisaged inquiry, but is surprised that it is necessary FALLOUT from the Competition Commission’s decision to probe allegations of anti-competitive practices in the poultry sector continued to pour in, with, for instance, the South African Poultry Association (Sapa) yesterday expressing its concern and surprise at the move. Sapa said it would co-operate with the envisaged Poultry Market Inquiry, even though it was “surprised that the inquiry is considered necessary,” and was “concerned at some of the statements and assumptions” in the commission’s announcement. “Central to the inquiry will be the issue of the concentration of large companies in both the broiler and egg industries. There seems to be an underlying suspicion this is bad for the industry and for consumers. We will provide…

TRANSNET National Ports Authority (TNPA) will now be able to offload shipping containers at two of its ports in spite of inclement weather conditions after taking delivery of four hydraulic tension mooring units. TNPA yesterday said that the first batch of four hydraulic tension mooring units had been delivered and operationalised at the ports of Cape Town and Ngqura as part of the 52 units procured in the second half of 2023. In September last year, TNPA appointed Netherlands-headquartered Shore Tension for the supply of 52 additional hydraulic tension mooring units in a bid to improve operational efficiencies at the ports, reduce shipping delays caused by inclement weather conditions, and improve vessel turnaround time. This comes as TNPA suffered huge backlogs during the crunch time festive season, with vessels stuck…

THE RAND BEGAN the week on better footing, dipping below the R19-mark yesterday on the back of a subdued US dollar as investors were cautiously awaiting US consumer inflation data today for clues on the potential trajectory of interest rates. The US inflation numbers will give markets a new sense of direction, following recent resilient economic data coming out of the world’s largest economy that has further supported a cut in interest rates by the Federal Reserve (Fed). Fed chairperson Jerome Powell recently highlighted that rate cuts were “not likely” to happen in March, adding that he could not overstate how important it was to restore price stability, by which he meant inflation is low and predictable. This comes after the volatile domestic currency weakened to R19.15/$1 into the end…

THERE are two critical numbers to watch in the upcoming Budget Speech, as the government, the National Treasury, and Minister of Finance Enoch Godongwana seek to successfully chart a narrow path for the country’s fiscus through difficult terrain. Following significant shortfalls in expected public income from tax revenue, these are the country’s budget deficit and its debt-to-GDP ratio. Notably, both were revised upwards in the November 2023 Medium-Term Budget Policy Statement, as a weak global environment, and energy and infrastructure challenges weighed heavily upon the economy. Consequently, the Treasury estimated that tax revenue would total R56.8 billion in 2023/2024, with a further R121.1bn shortfall over the next two years. As a result, the forecast budget deficit has been revised from 4% in the 2023 Budget to 4.9%, while public…

THE ADVENT of artificial intelligence (AI) and impact of industrial automation has decimated a significant number of industries across the globe, in the process rendering certain skill-sets redundant in the new economic order and creating opportunities for new skill-sets. Could local mining become the next sector to face an existential threat in the wake of the global push for adoption of regulatory requirements some of which are aimed at supercharging the just energy transition? It’s a fact that local mining is a vastly transformed sector compared to the pre-1994 era. From how mining operations are run and measurably ensuring inclusive participation, the sector has evolved. During this period, new black-owned mining companies, including women- owned entities, have emerged, with the Industrial Development Corporation (IDC) playing a critical role in supporting…