Friday, October 3, 2008.

From Creamer Media in Johannesburg, I'm Liam Morrison.

Making headlines today:

Energy group Sasol will have to deposit the full 318-million euro amount that it has been fined by the European Commission for its leadership role in a paraffin-wax cartel, within three months. This is regardless of whether it decides to appeal or not.

Commission spokesperson Jonathan Todd said that, should Sasol lodge an appeal, the money will be set aside in a locked, but interest-bearing bank account for the duration of the appeal. The account itself would be in the commission's name.

He also stressed that the group and its subsidiaries were liable for the full amount. But, it could decide internally how the money would be divided between Sasol Wax GmbH, Sasol Wax International AG, Sasol Holding in Germany GmbH and Sasol Limited.

The group had not set aside a specific contingent liability for any possible fine arising from the commission's probe. Sasol argued in its financial statements that "a reliable estimate of the amount" could not be made.

Ford Motor Company of Southern Africa president and CEO Hal Feder said that it would start discussions with the relevant unions about possible retrenchments at its Struandale engine plant and the Silverton assembly plant next Wednesday.

The company had already offered salaried staff the option of voluntary separation and early retirement packages.

The National Union of Metalworkers of South Africa said in a statement issued last week that the manufacturer was now also planning to retrench about 800 workers from these two plants. This is owing to declining production capacity.

South African vehicle manufacturers and importers have been struggling with declining sales over the last year. This is as increasing vehicle prices, inflation rates and interest rates had seen customer spending retreat sharply.

Following weeks of speculation, world-number-two platinum producer Impala Platinum has come clean with a proposal to buy South Africa's Mvelaphanda Resources and Northam Platinum for about 21,2-billion rand in cash and shares. This will create a new platinum giant which will rival Anglo Platinum. Anglo is the world's biggest platinum miner.

The key to the deal is Mvela Resources' 63% interest in Northam, which owns the operating Northam mine. It hopes to build a 400 000 ton a month mine at the lucrative Booysendal project, which it bought, with Mvela's help, earlier this year from Anglo Platinum.

The Booysendal project contains 103-million ounces, and could be in production as early as 2011, ramping up to full production in 2014/15.

Also making headlines:

Naamsa says new vehicle sales fall further, and were down 18% in September.
Volkswagen South Africa backs a 1-billion rand plan to boost local content.
PetroSA gets its licence for the new 11-billion dollar Coega refinery.
Department of Minerals and Energy deputy Director General is appointed the acting CEO of South Africa's State Diamond Trader.
Protests and strikes hit the mining sector in Peru.
And, the upgraded Braemore plant is expected to expand smelter opportunities in South Africa's PGM market.

In political news:

Joe Biden and Sarah Palin clash over Iraq and the economy.
The UN says the drug trade and crime could drag Guinea-Bissau into chaos.
The Nigerian president may ask his challenger to join government.
And, the South African health minister vows to make AIDS a priority.

That's a round up of news making headlines today. For more on these and other stories, visit engineeringnews.co.za, miningweekly.com and polity.org.za