sioc-cdt - the bbbee benchmark, page-4

Thanks yet again for the comment and articles Mihal.

Exercises the mind a tad more than the daily meanderings of CCC short term trading:-)

I think Connie Molusi said it best when he mentioned in the BBBEE annmnt a little while back that He EXPECTS this BBBEE JV to result in SIGNIFICANT RETURNS for both SIOC-cdt trust beneficiaries and shareholders.

It facinates me that the SIOC-cdt is prepared to stump up such a significant amount of their first years dividend into the CCC BBBEE arrangement.But then the fact that CCC have been able to attract EDF and KORES should really be just as facinating.

Don Turvey, said "Our partnership with the Sishen Iron Ore Company Community Development Trust is a landmark agreement for us and will transform the Company’s BUSINESS ACTIVITIES AND OPPORTUNITIES in South Africa. We welcome SIOC-cdt as our partners and believe together we will grow this business significantly in the coming years for all stakeholders".

These are LIKE-MINDED organisations with a business model with very similar corporate aims imo.

What is needed in South Africa is a RESTRUCTURING of the fractured assets available back into larger more viable projects.This can only happen with a broader based economic model that benefits those in the projects communities which is what the SIOC-cdt arrangement achieves.

The result will be larger projects with much more employement generation in areas that will benefit the economy.

I will not be surprised if we see some very interesting acquisitions over the next 12 months aligned with this business model/strategy.Wolvenfontein being the first.

Don Turvey has a DEEP understanding of this thermal coal producing region having developed a few of the bigger projects for the likes of BHPb.He will be very familiar with where the best thermal coal pickings are that work in well with either underutilised infrastructure and/or mines that are nearing their lifes end.It is knowledge like this that is the greatest asset to a company like CCC.

Some here will say these are just feel-good comments and the CCC ramping/promoters are at it again.Well I might ask those who would make such comments as to why the likes of EDF,KORES and the SIOC-cdt would bother to become involved with CCC both corporately and with large financial commitments.

It may well be taking longer to come together than most would want.But there is a very large foundation of potential being put under this company.We will more than likley look back at this company in 2-3 years and hardly recognise it from its 2009/2010 guise.

Growth transition was never easy in any corporate arena and South Africa would have to be one of the most challenging in the world today.Whether it be a mining company embarking on a project with new processing technology, or one with a challenging corporate business model, in such risk averse times such potential will be shunned and ignored.Just look at just about every share price on the markets today.

d.