South Africa’s new coalition cabinet unveiled
South Africa's new coalition government has split the energy portfolio from mining and merged it with electricity, shrinking the remit of former mineral resources and energy minister Gwede Mantashe.
Responsibility for the merged portfolio has been given to the former electricity minister, Kgosientsho Ramokgopa, who proved successful in alleviating the country's rolling power cuts.
On 28 June, state-owned utility Eskom marked around three consecutive months without any power cuts. This compares with 2023, when South Africa experienced its worst year of loadshedding yet.
Mantashe, who wields significant political power as chairperson of the African National Congress (ANC), has been assigned a smaller mineral and petroleum resources portfolio.
A new ministerial cabinet was announced just over a month after the ANC lost its majority for the first time since it came to power, forcing it to form a government of national unity (GNU) with main opposition party the Democratic Alliance (DA). More parties have since joined, so that a total of 11 parties now form part of the GNU.
Contrary to the ANC's previously stated intention to reduce the number of ministers, the new national executive comprises even more "to ensure that [it] is inclusive of all the parties," said ANC leader Cyril Ramaphosa, who was re-elected as president for a second term.
"In some instances, we have considered it necessary to separate certain portfolios to ensure that there is sufficient focus on key issues," Ramaphosa said.
The Energy Intensive Users Group (EIUG) of South Africa welcomed the establishment of a dedicated electricity and energy ministry, which can exclusively focus on helping Eskom to fulfil its mandate.
The appointment of Ramokgopa as minister overseeing the new ministry also bodes well for continuity of plans already in place, the EIUG said. "We hope his broader mandate will expedite the much-needed transformation of the energy and electricity industry."
The Minerals Council South Africa (MCSA) welcomed the separation of the minerals and energy portfolios as it will allow Mantashe "to focus on and give urgency to creating the right legislative environment to grow the mining industry," it said.
South Africa's attractiveness as a mining investment destination has plummeted over the past decade and the country now ranks among the bottom 10 in the world, according to the Fraser Institute.
Regulatory requirements in various departments — such as water, agriculture, forestry, fisheries and environment — must be harmonised to expedite the awarding of exploration and mining rights, the MCSA said.
Equally important is the implementation of a mining cadastre, a digital platform to transparently and efficiently manage mineral right applications and licences, it said.
Under the new administration, former department of forestry, fisheries and the environment (DFFE) minister, Barbara Creecy, was reassigned as transport minister, while the DA's Dion George was appointed in her place to oversee the DFFE.
Former finance minister Enoch Godongwana, under whom South Africa recently achieved its first primary budget surplus in 15 years, was reappointed in the same position.
Related news posts
US adds 206,000 jobs in June, jobless rate ticks up
US adds 206,000 jobs in June, jobless rate ticks up
Houston, 5 July (Argus) — The US added a solid 206,000 jobs in June while job gains in the prior two months were revised downward and wage gains cooled. The job gains, which beat analyst estimates, followed downwardly revised 218,000 job gains in May and 108,000 gains in April, the Bureau of Labor Statistics (BLS) said today, for a combined downward revision of 111,000 for the prior two months. The US generated a monthly average of 220,000 jobs in the 12 months through May. Economists expected gains of about 190,000 in June, according to a survey by Trading Economics. The jobless rate ticked up to 4.1pc, the highest in more than two years, from 4pc. Still, the unemployment rate remains near five-decade lows. Construction added 27,000 jobs, while manufacturing lost 8,000 jobs. Gains also occurred in government, health care and social assistance. Average hourly earnings rose by 3.9pc from a year earlier, down from a 4.1pc annual gain in the prior month and the lowest in three years. Futures markets after the jobs report indicated a 71.8pc chance the Fed will cut its target rate by a quarter point from a 23-year high in September, up from 68.4pc odds on Wednesday. The Federal Reserve, after its last policy meeting in mid-June, had penciled in one likely quarter point rate cut was likely this year, paring that from a likely three cuts shown in March. Still, it also said it needs to see evidence that inflation is "sustainably" slowing towards its 2pc target before beginning to cut rates from 23-year highs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hurricane Beryl threat to US offshore oil lower
Hurricane Beryl threat to US offshore oil lower
Calgary, 5 July (Argus) — A northward shift in forecasts for Hurricane Beryl could bring the storm to the mid-Texas coast early next week, but its threat to US Gulf of Mexico oil and gas production appears limited. US Gulf oil and gas operators evacuated non-essential workers from some offshore facilities earlier in the week as a precaution. But on Thursday those concerns appeared to lessen, with BP saying the storm "... no longer poses a significant threat to our Gulf of Mexico assets". Beryl had weakened to a Category 2 hurricane, according to a 5pm ET advisory from the National Hurricane Center (NHC), with maximum sustained winds of 110 mph. The storm is expected to reach the Yucatan Peninsula in Mexico by early Friday, bringing heavy rain, hurricane-force winds and storm surge. Beryl will likely weaken to tropical storm status as it passes over the Yucatan but regain hurricane status when it enters the Gulf of Mexico late Friday-early Saturday. Current forecasts have it turning northwest to make landfall again somewhere between the northeastern coast of Mexico and the mid-Texas coast on Sunday. The US Coast Guard changed the status of the port of Corpus Christi, Texas, -- a key US oil export hub -- to "whiskey" on Thursday, meaning gale force winds are expected to arrive at the port within 72 hours. The port remains open to all commercial traffic. Earlier in the week Beryl was a Category 5 storm, which made it the strongest on record for the month of July. It was a Category 4 storm on Wednesday with maximum sustained winds of 140 mph as it brushed past the southern coast of Jamaica. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
European Bi, In price rallies stall on profit taking
European Bi, In price rallies stall on profit taking
London, 4 July (Argus) — European price rises for bismuth and indium metal have slowed as sellers accept lower prices to take advantage of the markets' sharp increases in the second quarter. Speculation and tighter feedstock availability in China prompted prices for bismuth and indium metal to rise sharply in the second quarter, and European sellers raised offers to keep up with rising replacement costs. But a bout of profit taking from sellers has led prices for both metals to dip slightly over the past two weeks. European bismuth prices rose by 77pc in April-June but dipped lower at the start of July as traders took some profit from the recent price rally by offering long-held low-cost material at a discount to higher-cost replacement material from China. Argus last assessed prices at $6-7.25/lb duty unpaid Rotterdam, down from $6.50-7.50/lb at the end of June as infrequent bismuth traders dipped into the market offering 1-2t lots as low as $6/lb, while sellers buying replacement material from China offered upwards of $7/lb. Likewise, indium prices peaked at a nine-year high of $375-410/kg duty unpaid in June but have since settled slightly lower at $375-400/kg. Prices slid lower after a dip in the domestic Chinese market, which prompted sellers in Europe to reduce their offers slightly and take any profits gained from a 35pc price rise in the second quarter. Prices for both metals rose quickly during the second quarter owing to higher replacement costs from China, despite sluggish demand from European consumers. Chinese export prices for bismuth rose by 63pc from April to June and were last assessed flat at $6.13-6.25/lb fob. Domestic Chinese bismuth prices have risen as a result of environmental checks restricting the supply of bismuth concentrates from lead and zinc refineries, but the rise was also exacerbated by trading firms and investors taking large positions in anticipation of further price rises. Environmental checks also restricted supplies of indium feedstocks from China's Hunan, Guangdong, and Guangxi provinces, but the price rises on indium were largely driven by activity on the Zhonglianjin trading platform. Chinese export prices peaked at $370-390/kg fob mid-May but trended down to $360-375/kg through June once activity on the Zhonglianjin platform slowed. Speculation feeds further minor metal price jumps These rapid price rises on bismuth and indium prompted speculation that other minor metals could follow suit, with selenium, tellurium and germanium prices already trending higher. Selenium prices in Europe were assessed at $10.50-13/lb duty unpaid Rotterdam today, up from $10.20-12.50/lb at the end of June. Selenium prices rose by about 7pc during the second quarter, driven by higher replacement costs from China and steady demand from consumers and traders. Similarly, tellurium prices rose by 13pc in June, and were last assessed at $90-99/kg duty unpaid Rotterdam, up from the 2 July assessment of $88-96/kg. Supply in European warehouses is tight and rising prices in China have prompted sellers to raise their offers. Finally, germanium metal prices rose to a nine-year high of $1,800-2,000/kg cif main airport on 2 July, up from $1,600-1,900/kg at the start of June, following a rise in export prices from China. Germanium prices have averaged around $1,627/kg through the first half of this year compared with the 10-year average of $1,344/kg as export controls have restricted the supply of material outside China. Spot demand for most minor metals in Europe is slow and expected to remain so over the summer. But market participants are watching China closely for signs of which minor metals could be the next to spike, as Europe is reliant on Chinese exports for many minor metals. By Sian Morris Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
British Steel BF problem weighs on UK sections supply
British Steel BF problem weighs on UK sections supply
London, 4 July (Argus) — UK supply of structural steel sections could tighten as a result of a problem with British Steel's Queen Anne blast furnace (BF) at its Scunthorpe site. Damp coke could have caused the furnace problem, according to market participants. British Steel closed its coke ovens in 2023 and relies on imported metallurgical coke. The problem has slowed semi-finished steel production and caused a shortage of process gas for rolling lines. The steelmaker's Teesside Beam Mill is estimated by market sources to have enough semi-finished steel for around two weeks of production when it re-opens next week after a shutdown The reduction in iron making and rolling has caused some gaps to appear in the company's stock and buyers are now having orders for July turned down. One trader was told it would only have availability for late August. Partially as a result of the issues, the company announced two £30/t increases for structural sections in June and is expected to announce another £30-45/t increase in the next few weeks. Steelmaker ArcelorMittal recently tried to implement its own £40/t rise and a leading longs trading firm has hiked its offer to around £750/t. But demand remains sluggish, meaning the increases are not being widely accepted by service centres, which are struggling to pass through rises to their own customers. "We have recently experienced an operational issue with one of our blast furnaces which we are confident will be resolved imminently. We continue to manufacture iron and steel, and are working closely with our customers to satisfy demand and ensure they get the high-quality products they require," a company spokesperson told Argus . By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more