Hi PitmanThanks for the article I think that both RES and FSE...

Hi Pitman

Thanks for the article I think that both RES and FSE will have a happy ending for it's shareholder's, most of us have been waiting for a while, so what's another 18 months to see this through for us.

Below is something of what I posted on my last post # 8577364,


In 2008, Eskom has estimated that it would need around 200 Mtpa of coal by 2018 and that South Africa would need 40 more coal mines at an investment of R100 billion. A number of old mines are nearing the end of their useful life and, according to Eskom estimates, new mines will have to contribute around 180 Mtpa within 10 years to meet Eskom, Sasol, other domestic and export demand.


You might know better then I of how many new coal mines there are in SA,( questions for you Pitman do you know just how many new coal mines in the last 5 years, there are in SA and what companies they belong too and where are they ?? )

I'm hoping that RES is one of the 40 new coal mines that are needed in SA, interesting times ahead for all in the coal industry in SA, will what that has happen regarding
the unrest in SA mining of late affected the coal industry in SA ??

Read the article below !!


JOHANNESBURG (miningweekly.com) – AngloGold Ashanti CEO Mark Cutifani has taken a firm stand against striking employees, stating that the company did not intend to “reward broken commitments, violence and threats of intimidation”.

He said AngloGold Ashanti was “deeply” disappointed that its employees had chosen to break their commitment to the current wage agreement and collective bargaining structures.

The majority of the group’s 35 000 workers in South Africa are participating in the unprotected strike, which started at its Kopanang mine on September 20 and spread to the rest of its operations five days later.

Cutifani said South Africa had to convince investors, local and international, banks and rating agencies that it was still an attractive investment destination. “The blunt truth of it is, if we cannot convince the world at large to invest in the future of South Africa, then our future looks grim and certainly in both the medium and long term, the job prospects for us as a country look grim.”

He warned that the wave of mining strikes could result in job losses and said that it could lead to “premature downsizing” of AngloGold Ashanti’s operations in South Africa.

The company was unlikely to return to closed down operations in the short to medium term, as the costs incurred to restart these operations would be too high.

“In a country where one in four people do not have reasonable work, it is incomprehensible to be threatening job losses in our most important sectors, which is an important building block for South Africa’s growth path,” Cutifani said.

The gold producer warned that it would not hesitate to take action against striking workers, and that there could be potential dismissals. “We certainly hope it doesn’t get to that, but clearly if we have to do something we will. We have to protect the long-term viability of the company.”

Meanwhile, the AngloGold Ashanti CEO stressed that if employees were to return to work and engage in constructive discussion, they would find a way for a sustainable and shared future.

“We are open to consider ideas to bring forward negotiations and work together with our social partners to renew our commitment to, and delivery on, our social compact for the mining industry, as agreed in the Mining Charter,” he noted.

Through collective bargaining at the Chamber of Mines, the South African gold industry negotiates wage agreements every two years. The industry is currently in the second year of its two-year wage agreement, with 2012’s increases ranging from 8% to 10%. A similar increase was awarded last year.

AngloGold Ashanti’s South Africa operations account for about 32% of the group’s total production.

http://www.miningweekly.com/article/anglogold-ceo-warns-strikes-could-lead-to-premature-downsizing-2012-10-01