WEDNESDAY, 11.30AM
GOVERNMENT has announced a deal with an international consortium led by Phillips oil to prospect for oil and gas deposits along a 1 500km stretch of seabed off the KwaZulu-Natal coast.
The consortium involves Phillips, with a 40% interest, and PanCanadian Petroleum, Energy Africa and Sasol, each with 20%. If oil or gas is discovered, the state will be able to exercise an option to a 10% stake via Soekor, which will also receive an undisclosed royalty.
However, the deal may fall foul of the Income Tax Act, because the deal involves a guarantee that the consortium will never pay more than 35% tax, a provision expressly forbidden by the Act, which precludes government handing out tax breaks or offering guarantees about maximum future tax levels.
Mineral and Energy Affairs Minister Penuell Maduna insisted, however, that Finance Minister Trevor Manuel has agreed to the “once-off” deal and that it is within the law.
BUSINESS BRIEFS
RISK PROFILE UP
SOUTH AFRICA’S risk profile has improved so much that it plans to raise R4 billion from abroad this year, finance director general Maria Ramos announced.
MINES MERGE
GENCOR and Anglo Vaal Gold plan to merge their gold mines Fairview and Western Transvaal Consolidated, which will cut costs by between 25 and 30%. The combined operation will be 55% owned by Anglo Vaal and 45% by Gencor
WORLD BRANDS
The annual edition of “The World’s Greatest Brands”, published in the UK, has included three South African brands for the first time: Krugerrand, Outspan and Appletiser.
CAR SALES FLAT
CAR sales of 29 749 units at the end of April were down 2,2% year on year, the National Association of Automobile Manufacturers of SA announced. New car sales of 19 206 units in April were up 0,3% over April last year
NEW GREAT TREK
TRADE and Industry minister Alex Erwin yesterday signed an agreement withthe Mozambique government to create the Mosagrius Development Company, which will settle South African farmers in land in the northern provice of Niassa.