/ 18 June 1997

Gencor tightens grip on world nickel market

WEDNESDAY, 11.00AM

GENCOR is on the verge of increasing its share of world nickel production through a partnership deal with Australian producer Queensland Nickel.

If the deal goes through, it will result in the formation of the third largest nickel producer in the world with an annual output of between 50 000 and 60 000 tons a year, or 7% of last worldwide 800 000 ton pruduction.

Gencor’s current nickel assets, the Colombian Carro Matosos mine, is at present ranked eigth in the world, with annual nickel output of 24 000 tons a year. Queensland Nickel ranks fifth or sixth, turning out 27 000 tons last year.

Gencor has refused to comment on any deal, but the link-up comes at a critical time for the company on the eve of its launch of a new base metals company in London on Thursday. Nickel is one of the more valuable base metals.

Queensland Nickel shares were on Tuesday suspended on the Australian Stock Exchange at the company’s request, pending an announcement after a board meeting on Wednesday.

BUSINESS BRIEFS

ALDWORTH SUES ABSA CONVICTED fraudster and disgraced banker Bob Aldworth will continue with his R8-million civil action against Absa Bank, Aldworth confirmed on Tuesday. Aldworth was dismissed by Absa in 1993 amid claims of fraud and theft. Earlier this month he pleaded guilty to a single fraud charge involving R414 000. He was convicted and fined R100 000. Aldworth said his case against Absa involves wrongful dismissal and other charges, which he declined to explain.

SIXTH KATZ REPORT DUE The sixth report of the Katz taxation commission will be issued this week. The latest report deals with benefit funds, and it is believed it proposes closing a current loophole relating to advantages enjoyed by employers who engage in preretirement funding of post-retirement medical aid benefits.

GOLD OUTPUT FALLS AGAIN SOUTH African gold output fell 2,4% to 39 681kg in May, from 40 649kg last year. Latest Chamber of Mines figures show that on a cumulative basis in the first five months of the year production fell 2,6% to 199 906kg compared to 205 296kg over the same period last year.