Anglo could pull plug on Eskom coal supply

Compton_effect said:
The gist of it. Eskom built the station near a big coal deposit Anglo owns. Anglo built a mine there to supply the station. Eskom won't buy from Anglo unless they have a 60% BEE rating. Government regulations state they only need 55%. So Anglo is taking its ball and going home. Nothing Eskom can do about it. Lets see who blinks first.
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I sincerely hope that Anglo do not blink. Why should they. All these rules just force business to go through back alleys and create false facades to get it done. Quite ridiculous, some of them.
 
Compton_effect said:
In 2011 when all the nationalisation strikes gained momentum, Anglo Kumba assured all staff that they would have positions at their other minesin Africa. I was at the one mine when management had that chat with staff.

They've slowly pulled out of SA. They have nothing to lose anymore.
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Kumba only has Sishen, Kolomela and Thabazimbi mines in SA. Their biggest expansion projects are in SA. In 2011, Kumba was 50% of AngloAmerican Global Profits.
 
garp said:
And the irony is that Anglo contributed probably more than any other single company to the industrialization of this country, provided huge financial support historically for the ANC (and it's struggle stalwarts personally as well as their children), and probably has one of the the biggest corporate social responsibility programs.

This is the time to be worrying about BEE percentages? I actually hope that Anglo pulls out and leaves this miserable bunch of ingrates to pick up the pieces.
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I'm wondering just how much of this country contributed to Anglo's mere relevance....
 
rza said:
It's not as simple as that. The state owns the minerals, so they can pretty much tell Anglo to take a hike and go back to London, which they won't because their biggest mine is Kumba. So Anglo will comply and ANC bigwigs will get BEE shares. It happens all over the world.
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Anglo wants to divest from coal in South Africa and Australia. However, both countries it wont be easy.
 
rza said:
It's not as simple as that. The state owns the minerals, so they can pretty much tell Anglo to take a hike and go back to London, which they won't because their biggest mine is Kumba. So Anglo will comply and ANC bigwigs will get BEE shares. It happens all over the world.
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+1,000,001
 
Pitbull said:
Not exactly true. The Mining rights given to them is with security. If the Government pulls the plug be sure that Anglo will get their investment with interest back as part of the agreement. No mine will invest billions into setting up a mine without their own interests being protected. It all comes down to the duration of this allocation of rights.
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We will chuck Anglo out of this country empty-handed if they want to be foolish. People think SA is made up of puss*es neh! They go to Zim and sign deals which screw them but cry foul here in SA. Anglo must comply or create space for those who will. Plenty of takers out there.
 
Must must must! Look the guy who believes dinosaurs still roam the earth found a fan boy.

Shamepies nie. Woke up full of hate again this morning.
 
ZCFOutkast said:
I'm wondering just how much of this country contributed to Anglo's mere relevance....
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Mark needs to achieve 15% ROI by 2016. He will do whatever it takes to get there. Anglo is restructuring its business around the world. Even Kumba Iron Ore, who were the jewel for AngloAmerican global profits are now retrenching left-right. Australia, South America is suffering same fate.

New Largo deal was known by Anglo well before feasibility studies in 2008. These are just tactics to flex negotiation muscle. Anglo usually does that with DMR. They threatened to leave South Africa in 1999 when DME talked about BEE targets. Instead Anglo made huge profits from Platinum and stayed.
 
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ZCFOutkast said:
Well then his salary&options are a good starting point. ;)
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hahaha true...anyway Anglo have nowhere to go. South Africa is their major cash cow. Include Botswana and that is pretty much most of AngloAmerican profits. They will exit Australia faster than any country. Canada will be saved by DeBeers. Chile is copper. In South Africa, they need Limpopo's platinum mine, Kumba Iron Ore, Manganese, DeBeers and Export Coal.
 
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dlk001 said:
Australia, South America is suffering same fate.
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South America understandable -> Political&Social instability; with a bit of deliberate US meddling so if those idi*ts can sink their own smaller crude producers to spite the Russians what do they care about Anglo's interests in SOuth America.

Australia->Yes, whites can't manage an economy too, they stuff up too. Just like the dot-com bubble, mining boom in Australia was always going to end, and it has. Just like ANC they are led by politicians who wanted to get elected. They made short-term decisions (taxes), at the expense of long term. Hope your buddies didn't sell their houses here. They'll need them pretty soon. :D
 
Anglo leaving SA :whistle:

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