Star 2024-05-07

RENERGEN, operator of South Africa’s only onshore producer of LNG and helium at a site in Virginia in the Free State, said yesterday liquid helium had successfully been produced, an announcement that also significantly boosted their share price. The project has been questioned by some in the retail investor community, who claim that the delays and other problems belie a project that is at its heart not likely to be commercially viable. Nonetheless, the group said yesterday that the successful production of the helium represented a “significant milestone” for the project. In response, the share price – the share has been a favourite among retail investors – closed 5.74% higher at R12.16 on the JSE yesterday, although the price remains 31% below the R18 of a year ago, after investors…

AFTER pausing its South Africa refinery operations in 2022, petrochemicals giant Shell yesterday confirmed that it was exiting its downstream operations from the country amid a bitter row with its BEE partner, Thebe Investment. Shell’s exit from South Africa has raised alarm bells of further impending corporate departures from the country. BHP’s bid for assets of Anglo American excluding its platinum group metals (PGMs) and iron ore operations could also pave the way for the Johannesburg and London-listed firm departing, while BNP Paribas has also put an end to its banking venture. “Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in Shell Downstream SA (SDSA). Considering SDSA’s illustrious history, this decision was not taken lightly,” Shell said in a statement yesterday. It said this…

SEAFARER Porto Emporios Shipping has lost an appeal against a R135 billion claim, plus another R15bn claim in Indian rupees, from Indian Oil Corporation which attached the vessel New Endeavour as additional security to recoup costs of a load of cargo lost at sea between India and Kuwait in 2020. Porto, which had had the matter dismissed with costs by the Durban High Court on Friday, had brought an appeal that the ownership of the New Endeavour could not be ascribed to it. Another vessel – New Elly – owned by Elly Maritime SA, was also held as part of the security. The matter dates back to August 2020 when Indian Oil chartered Porto for the carriage of 277 564 metric tons of crude oil on its vessel,…

MANUFACTURING activity in South Africa surged back to expansionary territory as the country was exempted from crippling power cuts the whole month, in spite of ongoing decline in business activity due to subdued demand. The S&P Global South Africa Purchasing Managers Index (PMI) moved back above the 50 points mark, increasing to 50.3 points in April 2024 from 48.4 points in March, indicating stabilisation in the country's private sector. This was in line with the seasonally adjusted Absa PMI which rose to 54 points in April, from 49.2 points in March, signalling a renewed expansion and the strongest activity since March 2022. At 50.3 points, however, S&P said the index signalled only a fractional strengthening of business conditions. S&P said there were signs of stabilisation…

AS SOUTH Africa gears up for the start of the 2024 citrus season, the orange industry faces ongoing challenges from European Union (EU) regulations on the false codling moth (FCM). These rules were introduced in 2022 had significantly disrupted South Africa’s orange exports to Europe, traditionally an important market. With another season approaching, it is time to examine the impacts these regulations have had and what they could mean for the upcoming harvest and exports. The new EU requirements for exporting oranges, mandating cold treatment and additional inspections for FCM, have posed major obstacles for South Africa’s citrus growers. When the rules came into effect in 2022, orange exports to Europe dropped 9% by volume compared to 2021, down to 570 020 tons according to industry estimates. The decline…

WHILE South Africa harvests a mere 200 tons of Aloe Ferox annually, our global competitors, like Mexico, churn out a staggering 400 000 tons of Aloe Vera. This stark contrast not only highlights a missed economic opportunity but also underscores a perplexing disregard for our own superior indigenous resources. Despite Aloe Ferox being scientifi- cally proven to contain double the amino acids and 20 times more antioxidants than its international cousin, Aloe Vera, our local markets and manu- facturers overwhelmingly favour the less potent import. Why do we neglect our own “green gold” in favour of an outsider? This preference for the foreign Aloe Vera over the local Aloe Ferox is symptomatic of a broader trend of self-inflicted economic wounds. While the latter has all the makings of…