WHAT plot is our much- loved Human Settlements Minister, Tokyo Sexwale, hatching in West Africa? A wandering albatross whose compass went astray flew in last night to say he had seen Sexwale in Guinea in the company of Mohamed Condé, son of the president of Guinea — he’s hard to miss because he towers over everyone at more than 2m (6ft 7ins) tall. And, far off in the background, the albatross thought he could see the figure of George Soros.
The whole thing is fascinating because Guinea is the repository of more than 25-billion tons of bauxite — perhaps as much as half the world’s known reserves. It also has about 4-billion tons of high-grade iron ore and substantial quantities of diamonds, gold and uranium.
With a small population of 10- million you’d think this richly endowed country would enjoy high living standards. Instead, it’s another African basket case.
Sekou Toure became president when Guinea gained independence from France in 1958 and hung on using violent oppression until he died in March 1984. Lansana Conté replaced him after a quick coup d’état and stayed in power until he died in 2008.
Moussa Dadis Camara seized control at the head of a junta in December 2008 until he was shot and wounded by an aide a year later. After many interventions a general election was held in November and was won by Alpha Condé, the current president, who fought off a fierce attempt to depose him last month; he has promised to reform the security sector and review mining contracts.
This is where it gets interesting. Compagnie des Bauxites de Guinea is the main player in the bauxite industry. It is owned 49% by the Guinean government and 51% by a consortium led by Alcoa and Alcan. It exports about 14-million tons a year. Then there’s CBK, a joint venture between the Guinean government and Russki Aluminium (Rusal), which exports 2,5-million tons a year to Russia and Eastern Europe. And there are a few rats and mice, alongside conventions requiring Alcoa- Alcan and Global Alumina to build alumina refineries with a combined capacity of 4-million tons a year.
There is also a joint diamond mining venture, gold mining, and Rio Tinto has signed a binding agreement to establish a joint venture for the Simandou iron-ore project, said to be of the same size as the massive Pilbara in Western Australia.
So what? Well, it seems that Sexwale, Condé junior and other politically well-connected West African associates are telling foreign investors they have pretty much bagged some vital mining assets. Which ones? That’s unclear, but the albatross says concessions or parts of them held by Brazilian house Vale and Rio Tinto may be in their sights. When I asked about Rusal, the giant aluminium producer led by oligarch Oleg Deripaska, the answer was that he’d seen what was coming and had "done a deal" with Condé.
If Soros is involved you can be sure he can tap into a rich vein of the world’s wealthiest investors. Many will remember that Soros was once labelled "the man who broke the Bank of England".
I guess that an offshore vehicle, or several, will be established to house these assets and to help raise the capital required to bring product to market.
So Sexwale, having made a large fortune from mining opportunities thrown in his path in SA, is establishing himself as a multinational mining entrepreneur with interests that may range across the continent. I’m not sure how this interacts with his role as a South African Cabinet minister but I have to presume he’s been given the nod by JZ.
TALKING about George Soros, 81, brings to mind that he is thought to be worth something north of $20bn. Well, that helps in securing happiness — but doesn’t guarantee it. Sexy Brazilian soap star Adriana Ferreyr, 28, a former girlfriend, is suing for $50m.
She says he promised to buy her an apartment and assaulted her. Soros’s lawyer says that’s "baseless. The complaint is obviously an attempt to extract money from my client, who is known to be a very wealthy man."
THE JSE has been something of a shrinking violet over the past decade.
In 2000 the stock exchange listed 617 companies; by 2003 that had fallen to 472.
It now lists 399 companies including those on the AltX, venture capital and Africa boards.
Still, the value of those companies was a modest R1,5-trillion in 2003. The value now, despite a fall in numbers of 35%, is R6,7-trillion.
A BDO Research report prepared in March carries a list of complaints gathered from interviews with the CEs of 30 listed companies.
They think the regulations of the JSE too onerous; its news service is considered out of date and needs re- engineering; the application of International Financial Reporting Standards is a significant problem; and the King Report on Corporate Governance is a "material burden".
Their most stinging criticism was of AltX. It is, they say, tarnished by poorly performing companies and those with compliance problems; many investors are precluded from investing in AltX companies by their own rules; there is a lack of liquidity; AltX shares receive little media prominence; stricter rules and more discipline are needed; and the lower standards set for AltX companies impair its image.
My friend Humphrey Borkum, the JSE’s chairman, will be cross that I have reported this but the message should be heard.
Many CEs think that the JSE has overbalanced on compliance, its AltX doesn’t match up to the standards of similar boards elsewhere, and not enough is done generally by its executives to cut costs.
- BusinessDay
The whole thing is fascinating because Guinea is the repository of more than 25-billion tons of bauxite — perhaps as much as half the world’s known reserves. It also has about 4-billion tons of high-grade iron ore and substantial quantities of diamonds, gold and uranium.
With a small population of 10- million you’d think this richly endowed country would enjoy high living standards. Instead, it’s another African basket case.
Sekou Toure became president when Guinea gained independence from France in 1958 and hung on using violent oppression until he died in March 1984. Lansana Conté replaced him after a quick coup d’état and stayed in power until he died in 2008.
Moussa Dadis Camara seized control at the head of a junta in December 2008 until he was shot and wounded by an aide a year later. After many interventions a general election was held in November and was won by Alpha Condé, the current president, who fought off a fierce attempt to depose him last month; he has promised to reform the security sector and review mining contracts.
This is where it gets interesting. Compagnie des Bauxites de Guinea is the main player in the bauxite industry. It is owned 49% by the Guinean government and 51% by a consortium led by Alcoa and Alcan. It exports about 14-million tons a year. Then there’s CBK, a joint venture between the Guinean government and Russki Aluminium (Rusal), which exports 2,5-million tons a year to Russia and Eastern Europe. And there are a few rats and mice, alongside conventions requiring Alcoa- Alcan and Global Alumina to build alumina refineries with a combined capacity of 4-million tons a year.
There is also a joint diamond mining venture, gold mining, and Rio Tinto has signed a binding agreement to establish a joint venture for the Simandou iron-ore project, said to be of the same size as the massive Pilbara in Western Australia.
So what? Well, it seems that Sexwale, Condé junior and other politically well-connected West African associates are telling foreign investors they have pretty much bagged some vital mining assets. Which ones? That’s unclear, but the albatross says concessions or parts of them held by Brazilian house Vale and Rio Tinto may be in their sights. When I asked about Rusal, the giant aluminium producer led by oligarch Oleg Deripaska, the answer was that he’d seen what was coming and had "done a deal" with Condé.
If Soros is involved you can be sure he can tap into a rich vein of the world’s wealthiest investors. Many will remember that Soros was once labelled "the man who broke the Bank of England".
I guess that an offshore vehicle, or several, will be established to house these assets and to help raise the capital required to bring product to market.
So Sexwale, having made a large fortune from mining opportunities thrown in his path in SA, is establishing himself as a multinational mining entrepreneur with interests that may range across the continent. I’m not sure how this interacts with his role as a South African Cabinet minister but I have to presume he’s been given the nod by JZ.
TALKING about George Soros, 81, brings to mind that he is thought to be worth something north of $20bn. Well, that helps in securing happiness — but doesn’t guarantee it. Sexy Brazilian soap star Adriana Ferreyr, 28, a former girlfriend, is suing for $50m.
She says he promised to buy her an apartment and assaulted her. Soros’s lawyer says that’s "baseless. The complaint is obviously an attempt to extract money from my client, who is known to be a very wealthy man."
THE JSE has been something of a shrinking violet over the past decade.
In 2000 the stock exchange listed 617 companies; by 2003 that had fallen to 472.
It now lists 399 companies including those on the AltX, venture capital and Africa boards.
Still, the value of those companies was a modest R1,5-trillion in 2003. The value now, despite a fall in numbers of 35%, is R6,7-trillion.
A BDO Research report prepared in March carries a list of complaints gathered from interviews with the CEs of 30 listed companies.
They think the regulations of the JSE too onerous; its news service is considered out of date and needs re- engineering; the application of International Financial Reporting Standards is a significant problem; and the King Report on Corporate Governance is a "material burden".
Their most stinging criticism was of AltX. It is, they say, tarnished by poorly performing companies and those with compliance problems; many investors are precluded from investing in AltX companies by their own rules; there is a lack of liquidity; AltX shares receive little media prominence; stricter rules and more discipline are needed; and the lower standards set for AltX companies impair its image.
My friend Humphrey Borkum, the JSE’s chairman, will be cross that I have reported this but the message should be heard.
Many CEs think that the JSE has overbalanced on compliance, its AltX doesn’t match up to the standards of similar boards elsewhere, and not enough is done generally by its executives to cut costs.
- BusinessDay
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