Whats your view of the Industrial Development Corporation (IDC) being the joint venture partner of Nkwe? First of all I will give you a pharagraph from a in depth history of Anglo and then my reasoning. The history was excellent reading too so I've supplied the link but suspect you all ready know it.
http://www.answers.com/topic/anglo-america
In 1942 the government established the Industrial Development Corporation to promote and finance--through war taxes imposed on the mining industry--the expansion of ISCOR and a range of private industrial concerns. This was in some measure an attempt to create a counterweight to AAC. Its ability to draw on foreign capital sources, as well as foreign technology and other expertise, meant that the counterweight soon fell.
1. If the IDC become a Joint Venture partner it helps achieve it objectives from so long ago
2. This would appease the youth faction of the ANC aligned with Julius Malemba because in effect in contributes to the nationalisation of South African mining industry.
3. They have already signed their intentions to invest in platinum projects of a similar depth last year.
"South Africa's Industrial Development Corporation (IDC) is to invest around 840 million rand (£75.1 million) in equity finance for the new Lesego platinum mine project, it has been reported."
"The total capital outlay is estimated to be approximately six billion rand [£536.5 million] and assuming a 50:50 debt to equity split, the IDC equity contribution will be approximately 840 million rand," IDC chief executive Geoffrey Qhena told Reuters."
4. Being Owned by the South African Government it would of been easy for Nkwe to prove that it had the financial capability as required by the DMR in the terms of issuing a mining right without publicly identifying the possible joint venture partner.
5. It has the finance available
"The mineral processing and renewable energy industries would be among the first big beneficiaries of a R102-billion five-year investment plan by the Industrial Development Corporation (IDC), chief executive Geoffrey Qhena said yesterday."
6. Our very own MD Mr Mphahlele has the contacts within the IDC
Maredi Mphahlele holds a degree in mineral resource management and a diploma in mine surveying from Witwatersrand University. He gained considerable investment and project finance experience while employed as business analyst at the Industrial Development Corporation of South Africa. Mr Mphahlele sits on the board of various engineering, trading and mining companies. He is also a member of the business advisory team that is tasked with implementing industrial, agricultural and mining businesses for the Mpahlele area in Limpopo Province in the northern part of South Africa.
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