/ 8 September 1997

Billiton in Aus mining merger

MONDAY, 1.00PM:

The new UK-listed arm of Gencor, Billiton, will merge with the Australian nickel mining group QNI to produce the world’s fourth-largest nickel mining group, with a capacity to produce 60 000 tons next year.

The deal gives Billiton 52,4% of an enlarged QNI, the rest held by existing QNI shareholders, who will enjog capital returns of 30c per share. 455,8 milion new shares will be issued to Billiton.

The deal almost came unstuck at the weekend, with Australian analysts arguing that QNS had overvalued the nickel assets of Billiton, and that QNS had got the poorer deal.

BUSINESS BRIEFS

FOREIGN VISITORS The number of foreign air travellers who arrived in South Africa in July decreased by ten percent compared to the same month last year, but was up 36% compared to June 1997, the Central Statistical Services said on Monday. The CSS said there were 104 023 visitors in July this year, 82% of them overseas travellers. The CSS said 75 278 South African residents temporarily went abroad during July 1997, a 33% decrease compared to July last year.

Read the full CSS report

TRANSPORT UP The total tonnage of goods transported during the second quarter up to June 1997 was 156,6 million tons, 7,5% up on the corresponding period last year, and 1,1% up on the first quarter.

Central Statistical Services said on Monday that total tonnage carried by private undertakings during the three months to June 1997 increased by 7,1 percent compared with 1996. Tonnage transported by the parastatal Transnet increased by 8,2%. Private transporters increased their earnings by 4,9% or R37,7 million over 1996, and increased their travel by 5,2% to 10,7 million kilometres.

Read the full CSS report

NUMSA STRIKETHE Labour Appeal Court has urged the SA Motor Industry to allow the National Union of Metalworkers to call a one day strike tomorrow. Numsa has declared a strike in the motor retail sector where employers have allegedly refused to negotiate, and has asked members in other sectors to strike in sympathy.

LATE FLASH: Numsa has suspended tomorrow’s strike after failing to reach agreement with employers at the labour court hearing today.