Star 2024-09-18

THE NATIONAL Union of Mine- workers (NUM) is seeking the intervention of Mineral Resources Minister Gwede Mantashe to save the jobs of more than 1 000 workers from Seriti Resources who are facing retrenchment to ensure the company’s mines operate on a commercially sustainable basis. Seriti Resources purchased South32’s South African thermal coal business recently, while it also operates assets formerly owned by Anglo American. The company, which operates large-scale opencast and underground mines, is a big supplier of thermal coal to Eskom. Seriti Resources confirmed to Business Report yesterday that it had started a Section 189A consultation processes on September 16. It said this was likely to affect “up to 1 241 roles, of which 1 137 employees are likely to be retrenched” from its…

CONFIDENCE among consumers in South Africa is expected to remain buoyant for the rest of the year, after sentiment surged to its highest since 2019 in the third quarter, on the back of “a confluence of positive developments”. The FNB/BER Consumer Confidence Index (CCI), released yesterday, jumped to -5 points in the third quarter of 2024, recording its second consecutive 5-point increase from -10 points in the second quarter. The 5-point uptick in consumer confidence during the third quarter marks the third consecutive increase in consumer sentiment this year, propelling the CCI from an average of -20 points in 2023 to a 5-year high of -5 points, signalling a striking improvement in consumers’ willingness to spend. Concomitantly, FNB said the deceleration in inflation from 6% in…

JSE GROUP CEO Dr Leila Fourie is cautiously optimistic over South Africa’s economic and political future following the formation of the Government of National Unity (GNU) in mid-June and expects that investment demand to start increasing as sentiment improves. Speaking during PSG’s latest Think Big episode yesterday, Fourie said the new government was “much more business friendly … because it’s focused on getting the economy growing across key areas such as electricity, logistics”. Improved demand for investment from both local and international depositors would also lead to companies seeking to raise more capital. The JSE, she said, was outperforming emerging markets and both the Top 40 and the All Share indices are up following the formation of the GNU. Fourie added that South African stocks are undervalued, especially considering positive…

Shares in Metair surge 7%, closing at R16.06 on the JSE, after its deleveraging METAIR Investments’ disposal of its division in Türkiye – hit by economic and geopolitical turbulence over the past few years – for R2.95 billion to Quexco, a US investment holding company, adds to a growing list of South African companies that are finding the going tough offshore. The Turkish economy has struggled against inflation and an implosion in its lira currency that according to S&P forecasts is likely to weaken further this year. Metair expanded to Türkiye in 2013, seeking to diversify its operations. Yesterday, the company announced that it had entered into a sale and purchase agreement with Quexco Incorporated for the disposal of its entire shareholding in Metair Türkiye. The disposal will be…

IN JANUARY 2004, the Department of Water and Sanitation, under the leadership of Minister Senzo Mchunu, organised a two-day Water Services Authority Summit. The event was a response to the findings of the Blue and No Drop Reports, as well as the Green Drop Progress Assessment Report, which were published in December 2023. The Blue Drop certification evalu- ates the quality of drinking water systems, from purification to delivery to consumers. The Green Drop certification focuses on wastewater treatment systems across the value chain, including municipal, Department of Public Works and private systems. Both certifications assess operations, maintenance, skills, qualifications and the monitoring and control of water and wastewater infrastructure. The No Drop certification measures water use efficiency in municipal drinking water distribution systems. It uses non-revenue water as a…

A LANDMARK high court ruling found that business rescue practitioners (BRPs) can’t “have their cake and eat it too”. The case involving sugar giant Tongaat Hulett balances the principles of corporate rescue with the broader societal imperatives of industry regulation. The crux of the matter was whether BRPs could suspend certain statutory obligations during business rescue proceedings. Tongaat has been in voluntary business rescue since October 2022. Its BRPs sought as declarator that they were entitled to suspend any obligation of Tongaat that arose under the Sugar Industry Agreement (SI Agreement) during business rescue, including any local market redistribution payments and related levies that became due during business rescue. They also suspended payment of the redistribution and levies for the first six months of the business rescue. The Sugar…