WEDNESDAY, 11.00AM:
SOUTH Africa’s first black-owned mining house Johannesburg Consolidated Investments on Tuesday signed a three-year mining exploration deal with the Ethiopian governemnt.
In terms of the agreement, JCI subsidiary JCI (Ethiopia) acquires exclusive exploration rights in the Borena region, according to the Ethiopian ministry of mines, which added that JCI will pay up to $2,2-million during the period.
In September, JCI signed another exploration deal covering the western Ethiopian region of Welega.
Meanwhile, JCI chairman Mzi Khumalo has come under attck over another recent exploration deal — the company’s recent R250-million investment in exploration company Southern Mining Corporation was apparently not ratified by the group’s board.
Khumalo has confirmed that the purchase of 20% of the exploration company was not referred to JCI’s full board, but said it had been discussed ad hoc with several directors, not all of whom agreed with the deal.
Khumalo is under attack for the deal because of a perceived conflict of interest due to an option he holds on 2,5-million Southern Mining shares. Khumalo says he fully disclosed his interest prior to JCI’s purchase of Southern Mining shares. IN dispute is the true potential value of Southern’s exploration properties.
BUSINESS BRIEFS
TWO NEW EURORAND BONDS
THE World Bank on Tuesday launched its second eurorand bond in as many weeks with the announcement of its 30-year, R2-billion, zero-coupon bond. The European Bank for Reconstruction and Development also launched a 20-year, R2-billion global bond issue. The two new bond launches precipitated a rash of hedge buying on the local bond market, pushing yields down to their lowest levels in a month. The benchmark government R150 long bond strengthened from 14,2% to close at 14,08% yield.
CLINTON PLANS AFRICA TRADE TRIP
PRESIDENT Bill Clinton plans his first visit to Africa next year to promote a US-Africa trade and investment initiative. The Africa Trade Bill, to reach Congress by April, calls for a new US trade and investment policy for sub-Saharan Africa and an office responsible for promoting the region. Clinton’s trip, in the first quarter of the year, will include Ivory Coast, Ethiopia, Uganda, Mozambique, Botswana and Mauritius — but not South Africa or Zimbabwe.
PRISONS TENDER STORM
THE National Black Contractors Forum on Tuesday threatened to sue the public works department over its tender adjudicating process for the construction of new privately built and run prisons. The forum says the tender bid was was conducted by the department without reference to certain Acts, making the whole process illegal. The forum’s bid to construct the prisond, submitted with a US prison’design company, was rejected in favour of five other shorltisted groups. The forum said all the tender documents should have been submitted to the State Tender Board, which it says did not happen.