ANC wants banks to be forced to fund South Africa coal mines

Eskom says new coal mines aren’t being opened quickly enough to ensure supply for its power plants.
A worker walks past coal stores at the Grootvlei power station, operated by Eskom. Picture: Dean Hutton/Bloomberg

South Africa’s banks should be forced to invest in new coal mines in the country, the ruling African National Congress’s head of economic transformation said.

Nedbank Group and Standard Bank Group have said “they are not going to put money in coal any more,” Enoch Godongwana said in an interview on Carte Blanche, a Johannesburg-based investigative television programme. “To me, that’s an invitation for prescribed assets,” he said in a reference to the party’s investigation of whether to force pension funds to invest in developmental projects.

Read: Prescribed assets ‘won’t work’ – industry

While Standard Bank and Nedbank, two of the country’s biggest lenders, have said they won’t invest in coal for environmental reasons, South Africa is heavily reliant on the fuel for power generation. The country has 66 billion metric tons of coal reserves, according to Godongwana. Eskom the state power utility, has said new mines aren’t being opened quickly enough to ensure supply for its power plants.

Read: Standard Bank withdraws funding of new coal IPP projects in SA

“Who determines policy? A government of the day determines policy,” Godongwana said. “You can’t therefore have individuals determine what is the policy of the country.”

A move toward prescribed assets, while mentioned in the ANC’s election manifesto, would concern international investors and could destabilise South Africa’s R4 trillion pension industry.

“Most investors and local business leaders appear to think that prescribed assets will never end up happening,” said Peter Attard Montalto, head of capital markets research at Intellidex. “This interview seems to suggest otherwise and in a surprisingly specific way on coal.”

© 2019 Bloomberg L.P

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All the more reason to vote the ANC out. They think they own you, first land, then next your wealth (wealth tax). Greedy buggers

This is an idiotic plan.
Why not get people to invest in the renewables and the future?

Completely, indescribably berserk.
“The country has 66 billion metric tons of coal reserves, according to Godongwana. Eskom the state power utility, has said new mines aren’t being opened quickly enough to ensure supply for its power plants.”
It is often said that we have enough coal for at least 100 years. Well, we have enough sun and wind and hydro for millions of years.
A 2016 CSIR report states that we could easily have 70% of all electricity from renewables by 2040. The rest from natural gas and nuclear.
Coal is the BIG BADDY, and has to be phased out ASAP.
Read my comment below:
mybroadband.co.za/news/energy/301186-eskom-created-fake-load-shedding-to-sign-r14-5-trillion-in-coal-contracts.html

Already more than R 200 b has been spent by private investors, for a large part FDI in the country’s renewable IPP programm.
All projects built, up and running in 1 to 3 years. Compare this to the 12 year+ that Eskom is trying to finish Medupi and Kusile.
Medupi and Kusile should never have been built.

Well how about getting all the “illegal loans / donations / plain stolen money that left the vaults of VBS returned. That would then ensure that VBS will become solvent again – no doubt about that I’m sure. Then an appeal to the faithful party supporters and sycophants – and not forgetting the tenderpreneur brigade – to subscribe to a massive share issue. That should generate a substantial capital base for a successful bank to be re-launched. The unions, all the BEE shareholder trusts, the PIC, even Julius, etc. will willingly contribute their savings and investments to the new NewVBS Bank. Then that bank can fund all the new coal projects and grass root corporations being established under BCM. Simply boycott these WMC banks. I’m sure there would be some Chinese & Russian investors willing to invest. Maybe some money from Dubai as well? Problem solved. Yes? If not why not?

Forcing banks to lend! When can we expect a proposal that will make foreign investors take us seriously?

Forcing banks to lend! When can we expect a proposal that will make foreign investors take us seriously?

And if you ever thought the anc gave a damn about the environment you dead dead wrong! They only care about the contracts given out to buddies for coal anything where they can squeeze out from the public.

A vote for the anc, eff is a vote for total destruction! Wait until they get your pension funds!

Enoch Godongwana said … “To me, that’s an invitation for prescribed assets

Yes, his neurons, used to triumphist, thieving and dictatorial behaviour would think like that.

Why not, being an invitation to kick the ANC parasites out of Eskom?

Rather persuade the Guptas and Zumas to bring back their lootings.

And does Godongwana have Thyme Bank in mind too?

Could we seriously look at how many coal mines we need after the 5 Eskom plants due for shutdown are closed?

Let’s just plan properly

The Centre for Environmental Rights has just SUED the ANC government for increasing the emissions limit, and for doing so by deviating from the prescribed legal processes that it needed to follow, but didn’t!

Godongwana can pay the bank’s legal fees from his own pocket if he tries to force them to finance filthy coal-powered electricity in SA. Why should the BANKS with shareholders be dragged into the ANC mess! The only shareholders the ANC and Godongwana have are those on the gravy train in the ANC and its trade unions.

Perhaps there is a link between Afrimats success and the ANCs plan to get banks to endorse investment into mining starting off with coal? Where does Exxarro ( Glencore) fit in this equation? Hard to join the dots but something is up.

End of comments.

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