The national Budget for 2012 contains confidence building elements, Metropolitan Health CEO Blum Khan said.

The national Budget for 2012 contains confidence building elements, Metropolitan Health CEO Blum Khan said on Wednesday.

“There is some element of optimism in that message,” Blum said in a live interview on eNews.

Declarations that the government would remove the waste and inefficiency in its system, and visible progress in the health system contributed to this.

Earlier, Finance Minister Pravin Gordhan said the new health system would require funding over and above current budget allocations to public health.

An additional R1bn conditional grant had been allocated over the next three years to cover the cost of National Health Insurance pilot projects, to be established in “selected districts” during this year and 2013.

Khan said the markets would have been surprised by the lower than expected Budget deficit of 4.6 percent projected for 2012/13, four percent in 2013/14, and three percent in 2014/15.

The proposals for R9.5 billion in personal income tax relief would also be welcomed, he said.

“There is a lot to be said for the way this budget came together,” he said. - Sapa

A boardroom was burnt down during ongoing violent protests at Impala Platinum Mine (Implats) near Rustenburg, North West police said.

A boardroom was burnt down during ongoing violent protests at Impala Platinum Mine (Implats) near Rustenburg on Wednesday, North West police said.

“The boardroom was set on fire in the early hours of this morning (Wednesday), at shaft 7A,” said Brigadier Thulani Ngubane.

He said no injuries were reported. A case of arson had been opened. No arrest had been made.

The protests, which are linked to a five-week long strike at Impala's operation in Rustenburg, have claimed two lives so far.

The mine dismissed 17,000 workers after they went on an unprotected strike demanding that salaries of rock drill operators to be increased to R9000.

The National Union of Mineworkers (NUM) negotiated with the mine to re-employed the dismissed workers.

Some workers, most of them at the north shafts, refused to return to work unless they were paid at least R9000 a month.

Most NUM members in the north shafts do not want to be represented by the NUM, claiming the union has failed them.

They want to be represented by a new union, the Association of Mining and Construction Union (Amcu).

NUM spokesman Lesiba Seshoka said more workers were coming forward to be re-employed, and by Tuesday over 8000 had been re-employed.

“The process is moving smoothly,” he said.

Implats said on Tuesday that discussions with the NUM would continue around any issues which still needed to be resolved once the workers were back at work. - Sapa

The Competition Tribunal has given its stamp of approval to settlement agreements reached between the Competition Commission and two major oil companies - Engen Petroleum and Shell South Arica Marketing - for alleged price fixing.

The Competition Tribunal has given its stamp of approval to settlement agreements reached between the Competition Commission and two major oil companies - Engen Petroleum and Shell South Arica Marketing - for alleged price fixing.

The two oil companies admitted to having fixed the price of bitumen with other oil companies by collectively determining and agreeing on pricing principles, including a starting reference price and monthly price adjustment mechanism. Engen has agreed to pay a penalty of R28.8 million and Shell has agreed to pay almost R26.3 million.

The settlement agreements follow the Commission's referral on 04 March 2010 of its findings against the Southern Africa Bitumen Association (SABITA) and seven major oil companies namely, Chevron SA (Pty) Ltd, Engen, Shell, Total SA (PTY) Ltd, Masana Petroleum Solutions (Pty) Ltd, Sasol Limited and Tosas (Pty) Ltd to the Tribunal for adjudication.

The Commission did not seek a penalty from Sasol and its subsidiary, Tosas, which were granted conditional immunity following the leniency application filed with the Commission by Sasol on 12 January 2009. The Commission previously concluded settlement agreements with Masana and SABITA in 2010 and 2011, respectively.

Bitumen is one of the by-products from crude oil refining. Bitumen and modified bitumen products are used to surface and rehabilitate roads, as waterproofing products and to suppress dust. The end customer of bitumen is mainly government road agencies and municipalities.

This case was initiated following information received from Sasol and its subsidiary Tosas in the leniency application. In its investigation the Commission found that the oil companies entered into an agreement and engaged in collusive conduct from around 2000 until at least December 2009.

The conduct included the exchange of competitively sensitive information relating to the pricing of bitumen and associated products, and the use of an agreed pricing formula to set the wholesale list selling price of bitumen.

This was facilitated through meetings convened by the industry association, SABITA, as well as correspondence through SABITA and direct communication between oil companies. - I-Net Bridge

Old Mutual announced that a preliminary non-binding offer has been accepted by Ecobank Transnational Incorporated (ETI) for the acquisition of Nigerian insurer Oceanic Life.

International long-term savings, protection and investment group Old Mutual plc (OML) announced on Wednesday that a preliminary non-binding offer has been accepted by Ecobank Transnational Incorporated (ETI) for the acquisition of Nigerian insurer Oceanic Life.

Oceanic Life was acquired by ETI in October 2011 as part of the Oceanic Bank Group.

Old Mutual and ETI are currently negotiating and finalising the relevant legal agreements. These agreements will incorporate the required conditions precedent for the transaction, including the relevant regulatory approvals from both a South African and Nigerian perspective.

Oceanic Life is a Nigerian life assurance company with a market share of 1.8% and a Net Asset Value of US$16 million.

The acquisition would form part of Old Mutual's stated strategy of expanding its presence in sub-Saharan Africa. - I-Net Bridge

Petmin has signed a renewable five year agreement which will enable it to export up to 600,000 tonnes of metallurgical anthracite a year from Grindrod Terminals Kusasa dry bulk facility at Richards Bay.

Petmin (PET) has signed a renewable five year agreement which will enable it to export up to 600,000 tonnes of metallurgical anthracite a year from Grindrod Terminals Kusasa dry bulk facility at Richards Bay.

The agreement, effective from 1 February 2012, gives Petmin the capacity to ship its expanded anthracite production from the Somkhele mine 85km north of Richards Bay.

Under the terms of the agreement, Petmin has been allocated 45,000 tonnes of exclusive stockpile and an indicated vessel loading rate of 12,000 tonnes per day.

The Grindrod facility replaces Petmin's previous throughput arrangements at Richards Bay.

Somkhele is increasing production from its current 535,000 sales tonnes per annum to in excess of 1.2m tonnes annually. Long term sales contracts are already in place with domestic and international customers.

The mine produces anthracite with low phosphorous and sulphur, and high vitrinite content, for export via Richards Bay (55% of production in 2010/11) to iron ore pelletizing and sintering markets mostly in Brazil, and for the South African ferro alloy industry (45% of production in 2010/11).

Anthracite produced by Somkhele is transported by road from Somkhele to Richards Bay, and to domestic customers.

The company said the operational update is not related to the cautionary announcement issued on 9 January 2012 and renewed on 20 February 2012. - I-Net Bridge

Mpact has advised that for the year ended December 2011, it expects its basic earnings and headline earnings per share to be in a range of 52 to 56 cents from 23.1 cents a year ago.

Mpact (MPT) which listed on the main board of the JSE in July last year following a demerger from Mondi, on Wednesday advised that for the year ended December 2011, it expects its basic earnings and headline earnings per share to be in a range of 52 to 56 cents from 23.1 cents a year ago.

It expects underlying EPS to range between 100 and 104 cents from 24.3 cents in 2010.

The company said the demerger gave rise to special items of cost that would not recur, including listing costs and the costs of restructuring debt. In order to reflect the earnings effect of these special items, the directors of Mpact have elected to provide an additional measure of underlying earnings per share.

In terms of a special resolution passed on 28 April 2011 the number of ordinary shares in issue was increased from 159,950 ordinary shares to 23,192,750 ordinary shares following a share split.

Furthermore, on 5 July 2011 an additional 140,853,726 ordinary shares were issued to the then shareholders as part of Mpact's capital restructuring prior to listing. Consequently the company listed on 11 July 2011 with 164,046,476 ordinary shares.

It said the increase in EPS over the prior year is due primarily to lower finance costs attributable to the recapitalisation of the company prior to listing.

Mpact expects to release its results on or about 8 March 2012. - I-Net Bridge

Massmart Holdings has confirmed that a member of the public had been shot dead in the parking lot of its Builders Warehouse store in Rivonia, Johannesburg, in an attempted robbery at the store.

Massmart Holdings (MSM) on Wednesday confirmed that a member of the public had been shot dead in the parking lot of its Builders Warehouse store in Rivonia, Johannesburg, in an attempted robbery at the store.

"At approximately 06:40 on Wednesday, four armed men confronted staff opening the Builders Warehouse store in Rivonia.”

"The armed men forced the duty manager into the administration office at gun point and demanded that the safe be opened, the duty manager was unable to open the safe due to the very strict security measures in place at the store, the armed men then left the store and in what appears to be an attempt to secure a getaway vehicle, they confronted a member of the public and a scuffle ensued and it is with the deepest and utmost regret that we have to that confirm the owner of the vehicle was shot and fatally wounded," Massmart said.

The company added that it was very grateful to the South African Police Service who responded very quickly and co-ordinated a pursuit of the men involved.

"Senior management from Builders Warehouse immediately travelled to and were on the scene," the retailer noted.

The store, which is now a crime scene, is currently not open for trade.

"Trauma counsellors will be available to assist the members of our staff and the public who were present. Further information will be made available as appropriate," Massmart commented. - I-Net Bridge

Poultry producer Rainbow Chicken has posted a rise in diluted headline earnings per share in the six months ended December 2011 to 68.4 cents, compared with 55 cents for the six months ended September 2010.

Poultry producer Rainbow Chicken (RBW) on Tuesday posted a rise in diluted headline earnings per share in the six months ended December 2011 to 68.4 cents, compared with 55 cents for the six months ended September 2010.

The company changed its financial year-end to 30 June so as to align with that of its holding company, Remgro.

Revenue was up by 15.8% to R3.9 billion largely as a consequence of the higher trading quarter included in period under review, from the previous comparative period. Operating profit was up 27% to R301.5 million.

“Rainbow's focus on added value has seen its contribution to total chicken revenue increasing from 47.8% in June 2011 to 53.1% in December 2011, again demonstrating that Rainbow's added value strategy remains integral to delivering an acceptable profit in challenging economic times,” it said in a statement. - I-Net Bridge

Rolfes Holdings has reported a 16.1% rise in diluted headline earnings per share to 17.3 cents for the six months ended December 2011 from 14.9 cents a year ago.

Rolfes Holdings, (RLF), the diversified manufacturer and distribution group operating in the chemicals sector, on Wednesday reported a 16.1% rise in diluted headline earnings per share to 17.3 cents for the six months ended December 2011 from 14.9 cents a year ago.

An interim dividend of 5 cents per share has been declared.

Turnover increased by 30.2% to R302.8 million and operating profit increased by 29% to R31.0 million.

The group said it had performed satisfactorily for the period considering the European financial crises resulting in unstable world-wide economic conditions and adverse local conditions.

Results were bolstered by the inclusion of the Agchem and Amazon results for two months from 1 November 2011.

Revenue increased by 30.2% notwithstanding a one month long labour strike during July 2011 affecting performance significantly during the first few months of the review period. Reduced European product demand prompted a decline in exports while certain high volume product demand reduced locally due to weak trading conditions and unfavourable import pricing, resulting in increased competition.

Exports into the rest of Africa continued to grow, albeit from a very low base. Total exports now comprise R34.7 million or 11.5% of revenue for the period.

The Agchem acquisition, included from 1 November 2011, contributed R35 million to group turnover and R4.6 million to profit after tax. Amazon, included from the same date contributed R4.2 million to group turnover and R0.2 million to profit after tax.

Looking ahead, Rolfes said it would continue to actively pursue new acquisition opportunities in the chemicals sphere, especially in the mining and specialty chemicals sectors. - I-Net Bridge

Afrox and Famous Brands have confirmed that the Department of Labour was making progress in its investigation into the cause of an alleged gas explosion at the Mugg & Bean restaurant in the Festival Mall Shopping Centre.

In a joint statement on Wednesday, Afrox and JSE-listed quick-service restaurant franchise group Famous Brands (FBR) confirmed that the Department of Labour was making progress in its investigation into the cause of an alleged gas explosion at the Mugg & Bean restaurant in the Festival Mall Shopping Centre.

The explosion, which occurred on February 2, left the restaurant badly damaged, and saw three staff members seriously injured.

The current phase of the investigation involves interviewing witnesses, studying CCTV footage and conducting a forensic explosion investigation.

“Afrox, the supplier of liquefied petroleum gas (LPG) to the mall, and Famous Brands, are working closely with the Ekurhuleni Fire Department, the LPG Safety Association and the Department of Labour to determine the cause,” the statement said.

“The safety of our customers and staff is paramount at all times in our operations - in this regard we are working closely with all relevant authorities to determine the cause of the alleged gas explosion.

“The investigation process is extremely comprehensive and once all the reports have been finalised, a further announcement will be made,” Kevin Hedderwick, Famous Brands chief executive, commented.

Brett Kimber, Afrox managing director said the company was keen for the investigation to be finalised as soon as possible so the cause of the incident could be determined.

“We are confident that the Department of Labour is making headway in this regard,” he added.

Mugg & Bean is a coffee-themed restaurant franchise chain, which was founded in 1996 by Ben Filmalter, one of SA's most prominent restaurateurs and a founding member of the South African Restaurant Association.

Other restaurants in Famous Brands' portfolio include, Steers, Wimpy, Debonairs Pizza, FishAways, Tashas, House of Coffees, Brazilian Cafe and Blacksteer. - I-Net Bridge