$2.30 stock a possibility?, page-8

re: $2.30 stock a possibility.only if ?? The SA government is under increasing pressure to encourage industrial development and job creation, particularly in the impoverished and neglected areas such as the Eastern Cape's Wild Coast. Therefore, its not surprising that the government’s plans for the N2 toll road show that the intend route will serve a potential mine site at Xolobeni. The fact that this particular route is less environmentally friendly than other potential routes probably indicates which side the government favours.

MRC has received final approvals to secure a key investment by the South African Export Development Fund (SAEDF), which was established as a joint initiative between ABSA Bank Ltd and the South African Department of Trade and Industry. Its unlikely the SAEDF would be pumping money into the project if they didn’t know the project would eventually get a mining approval.

Futhermore, it would seem that the impoverished locals who desperately want a few human basics favour the mining project and are disinterested in the environmentally preferred eco-tourist proposals. It was the provincial government that actually approved the prospecting license, despite objections from the national Environment minister. WESSA has even accused MRC of bribing locals, which probably indicates that the Greenies know they are fighting a losing battle. It’s hard to fight a Green campaign when even the locals who would be most affected favour development.

While the Environment minister has been crowing on of late about declaring a Pondoland National Park by year’s end, I tend to believe this is nothing more than grandstanding given that the World Parks Congress happened to be in SA. No doubt the Minister was pressed on this issue so it would have been politically difficult to say anything else given the circumstances. Besides, its hardly likely that any minister for environment is ever going to publicly endorse a mining development. The fact is that the same Environment minister has been making the same declarations for years now and nothing has happened.

Reading between the lines it would appear that the Greenies are fighting a lost cause. The wheels for development are in motion and the momentum that has been gained is going to be very difficult for the Greenies to turn around.