Monday, August 16, 2010

Is this how it goes?

So when Mittal failed to apply together with Kumba for the rights to mine the iron ore in the Thabazimbi mine, the government promptly gave more than 20% of the rights to Imperial Crown Trading, irrespective of the fact that Kumba had applied for the full rights. Should their application rather not have failed? How can you only get part rights?

Imperial Crown Trading then promptly said that Kumba could no longer supply Mittal with iron for cost less 3% as has always been the arrangement. Do they realise when they do this that it is the consumer that will carry the increase? The consumer being their own.

So to end the dispute, Mittal pays Imperial Crown R800 million for the rights on the Thabazimbi mine. Who are the instant millionaires? And what have they done to deserve it besides form a company that has not existed until a few months ago?

•Mabelindile Archibald Luhlabo;
•Mojalefa Mbete;
•Prudence Zerah Mtshali
•Pragat Investments (Jagdish R Parekh)
•Phemelo Ohentse Robert Sehunelo; and
•Zebo Lesego Edwin Tshetlho
Arcelor will pay R 800m for the stake, which will be payable subject to terms and conditions, including, inter alia, completion of a due diligence exercise to the satisfaction of ArcelorMittal South Africa (JSE:ACL).

According to the Mail and Guardian:

Zebo Lesego Edwin Tshethlo
Tshethlo is apparently a municipal manager of the Kgalagadi district municipality.

Phemelo Ohentse Robert Sehunelo
An advocate, Sehunelo served as Northern Cape provincial director of housing and city manager of Kimberley, but now holds business interests in the Northern Cape. He served on a ministerial task team on mining procurement in the Northern Cape and is a business partner of well-connected Kimberley businessman Trevor Pikwane. Pikwane and Sehunelo are involved in the controversial proposed Bongani Minerals tungsten mine in the Western Cape as well as in Kimberley Consolidated Minerals.

Mabelindile Archibald Luhlabo
Luhlabo was a founding director of the Mineworkers' Investment ­Company, though he resigned in 1999. He is also active in the ­diamond industry.

Prudence Zerah "Gugu" Mtshali
Mtshali is the former assistant in the ANC treasury department and reportedly Deputy President Kgalema Motlanthe's long-term romantic partner. Oddly, both Luhlabo and Mtshali reflect their addresses as the humble home of one of Pikwane's employees in Kimberley's Pescodia township.

Mojalefa Landlord Mbete
Son of well-connected businessman Lazarus Mbethe, he has extensive business interests in the Witbank area, notably in coal mining.

What impression do we give to the outside world when we, by voting in this government, give to the outside world? Do we think when our mining industry goes abroad to talk to investors that they will not question dealings such as these? And then... Do we defend the industry or do we defend the government?

No wonder they are also gung-ho to muzzle the press too!!

It makes me shudder!

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