/ 16 October 1997

Mobil returns to SA

THURSDAY, 1.30PM

The world’s third-largest oil company, Mobil Corporation, is set to launch an “aggressive marketing campaign” into lubricants in South Africa, to boost local subsidiary Mobil Oil SA. Local MD John Pototsky said on Thursday tens of millions of dollars will be invested in the South African oil market.

Mobil left SA in 1989 when US sanctions caused heavy tax penalties to investors in SA. Now Mobil is considering a link-up with a black empowerment group to begin a joint venture in lubricant blending. Possible candidates for the venture include Naledi Investments and Afric Oil.

While Mobil is eyeing out the fuel industry, Pototsky said for now its priority is the lubricants market.

BUSINESS BRIEFS

JOB LOSSES FEARED AT PREMIER

THOUSANDS of Premier Group employees may be retrenched in the next few weeks as the group’s baking, milling and oil operations are disposed of. Industry speculation is that Premier is unbundling its assets, in preparation for a distribution of assets to shareholders.

NUM MARCHES

MEMBERS of the National Union of Mineworkers marched on management at the Vaal Reefs mines after hours on Wedneday, in protest at the possible retrenchment of 4 000 workers. The workers look likely to lose their jobs following the sale of certain mine shafts.

LAND BANK LOANS

PARLIAMENT’s public accounts committee heard on Thursday the Land Bank has disbursed 579 loans worth R57,3-million to emerging farmers over the past two-and-a-half years.

BOND TRADES

THE Bond Exchange reported in its September journal, released yesterday, a 21% increase in volumes traded for the year to date to a total nominal value of R3,17-trillion. The increase came despite a 15% drop in reported trades. The volume represents about 10 times the market capitalisation of the Bond Exchange.

JAPANESE AID TO SWAZIS

JAPAN donated $458m to the Swaziland government on Wednesday, for the upgrading of several hospitals. The donation was made in the middle of a dispute between the country’s unions and the government over political reforms. Workers have been on strike since Monday, and repeated once again today that the strike will continue until the government concedes. The South African union federation Cosatu has pledged support, including blockades at the border.