outh Africa's National Union of Mineworkers said Anglo American Platinum (Amplats), the world's largest platinum producer, again raised its wage offer on Friday, trying to head off a strike that could cause a jump in global prices of the precious metal. The platinum sector is the latest to be affected by a wave of disputes in the country's mid-year "strike season" after stoppages in other mines, steel and fuel threatened to dent growth in Africa's biggest economy. "There is an improved offer ...it will be taken to members for consideration," NUM spokesman Lesiba Seshoka told Reuters. He expects a vote to start on Monday and would not disclose details of the offer. The union will meet Amplats again on Aug. 31. The company on Thursday offered raises of between 7.5 percent and 8 percent, up from a previous offer of 6 percent to 7 percent. NUM lowered its demand to between 11 percent and 12.5 percent from 15 percent, which is triple the inflation rate. The union has said its members at Impala Platinum rejected a revised offer from the world's second largest producer of the metal and will refer the dispute to arbitration. "We insist on a double-digit increase across the board," said Eddie Majadibodu, the NUM's chief negotiator at Implats.
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According to a survey, the majority of South African citizens are against their government borrowing a USD 3.25-bil (ZAR 28-bil) loan from the World Bank to finish the outstanding 25% of the new 4,800 MW (6×800MW) Medupi power plant (the biggest of its kind in the southern hemisphere of its financially troubled power generating and distribution company Eskom. The study showed that the majority fear that the African National Congress-led South African Government is borrowing money for its own political purposes. The ANC-owned company Chancellor House owns a 25% stake in Hitachi Africa, which holds contracts worth ZAR 38-bil to supply boilers for the ‘Medupi’ and ‘Kusile’ coal-fired power plants.



Opposition leader Hellen Zille has accused the ANC for playing political black-jack as it could pocket as much as ZAR 950-mil via the Medupi deal alone. She called the benefits reaped in the dodgy deal by the ANC a “devastating blow for South African democracy.” To raise international awareness to the dangers, Zille has also turned to the US and British Embassies in South Africa. The World Bank has expressed that its loan to Eskom would fund only the constructions of Medupi that Hitachi is not involved in. But Zille argues that the power plant is one whole single project . She compared the current financing to a previous ‘Arms Scandal’ where many “unsolicited” contractors and sub-contractors also put their finger in the pie.



Zille told the US and British Ambassadors that the World Bank should not promote political party benefits in any way. Instead it should lend Eskom money only on condition that the ANC pull out of any companies involved in the Medupi project. Otherwise the world Bank would help South Africa become “a criminal state” before it becomes another “Zimbabwe,” she said. Opposition parties have questioned why the 4,800 MW Medupi power plant will cost an estimated ZAR 125-bil, when initially it was approved for almost half this amount.



At the same time the South African Treasury, claims that once Eskom secured the USD 3.25-bil, it may borrow a further USD 2.25-bil (of which USD 1.25-bil would be used to reduce CO2 emissions from the coal-fired plant. This was made in a statement composed by various ministries, including the Department of Public Enterprises, Eskom’s biggest shareholder, which argued that the South African economy will face dire consequences unless Eskom secures the loan. Although the US and British governments have agreed to support Zille’s initiative experts fear that other developing African nations alongside Brazil, China and India will approve the loan. Environmentalist groups, Greenpeace, Friends of the Earth and Christian Aid have objected the loan for the project that South Africa plans to commission for 2012. Experts say a 4,800 MW coal plant, such as the Medupi, would emit an additional 25-mil t/yr CO2 into the atmosphere. During the last 18 months the World Bank allocated a record $100 billion to developing countries at the request of member countries.



By Tamas S. Kiss



Source: the Budapest Record (April 8, 2010)