Continued
"Here is another shady character who seems to be in cahoots with Gilbertson.
Victor Vekselberg.
Vekselberg owns Sual. Sual has just combined with RUSAL to produce the biggest alminium producer in the world.
He also own Renova. Renova seems to a company in which Vekselberg uses to acquire raw materials like manganese which are used to produce aluminium.
In the SMH article Vekselberg and Renova may invest in CSM via Pallinghurst.
I would say this is what will happen.
PALLINGHURST WILL SELL csm'S MANGANESE BUSINESS TO RENOVA AND MAKE A NICE TIDY PROFIT FROM THE DEAL.
Just wait and see.
In the meantime just check out this article about Vekselberg and the Renova group.
Tell me if you don't smell something fishy.
v
v
v
v
Don't count your roubles
Nic Dawes, Stefaans Brümmer and Vicki Robinson
08 September 2006 07:56
Russian President Vladimir Putin was in South Africa this week for his first official visit with President Thabo Mbeki. (Photograph: David Harrison)
The R7,2-billion in foreign direct investment promised by the Russian investment group Renova may not be quite what it seems, documents detailing the financial structure of the deal suggest.
The most prominent among the business people accompanying Russian President Vladimir Putin on his first visit to South Africa was Renova chairperson Victor Vekselberg, Russia’s third-richest man.
Putin on Tuesday described Renova’s plans to build a ferrochrome smelter at Coega, and to link it to manganese mines in the Kalahari, as a $1-billion (R7,2-billion) investment in South Africa. On Wednesday, Vekselberg told journalists that investment in the smelter and mining operations would reach $1-billion over five years.
But documents and corroborating information obtained by the Mail & Guardian suggest that the total investment could be less than half that, and much of the money may come from local sources.
According to a 2004 Renova document obtained by the M&G, the Russian company estimated the total project cost to be between $300- and $400-million. Renova’s website gives the same figure.
The document envisaged that only a part of this would be Renova’s own money, saying: “Once a bankable feasibility study shall have been prepared, Renova shall undertake to arrange financing for subsequent stages of implementation … using all available opportunities and connections with major financing companies.”
In a document submitted to government last year, Renova committed itself to providing up to $50-million (R350-million) of project costs ”” again, until a “bankable feasibilty study” is completed. Chief among these initial costs is an estimated R276-million in prospecting expenses. This document is silent on the smelter.
The only mention of a $1-billion figure is in the 2004 document. It says that the “estimated … market value” would be $500-million to $1-billion. This is a measure, not of the investment needed to get the project up and running, but of its value once that has been achieved.
It appears that a locally based consulting firm, Bateman, may be doing much of the fundraising legwork. According to the Russia Journal, which has published a series of articles questioning the plausibility of Renova’s investment promises, Bateman has confirmed in a statement that it is helping Renova to raise the funds. “Cooperation with Bateman on this aspect will allow Renova to exploit financing opportunities for joint projects, including ‘Manganese of Kalahari’,” the company said.
Last November Bateman confirmed the agreement with Renova: “As Bateman is not only a process engineering company, but also experienced in structuring financing packages for global projects of all sizes, the [memorandum of understanding] will allow Renova to exploit financing opportunities for joint projects.”
In short, there is no guarantee that more than $50-million will flow from Russia into South Africa. The balance of the required investment, which could be anywhere between $350-million and $950-million, would have to come from local and international financial institutions, or a stock market listing.
How that would affect the 51% BEE shareholding in United Manganese of Kalahari, the company through which Renova participates in the manganese project, is not clear. But it would almost certainly dilute it.
According to Business Day Vekselberg and Russian Natural Resources Minister Yuri Trutnev also hinted that Renova subsidiary Sual, headed by South African Brian Gilbertson, and rival firm Rusal were interested in the stalled $2,7-billion aluminium smelter project at Coega.
The two firms are currently the subject of intense speculation over a possible merger, which, according to Russia watchers, may or may not be in the works, and may or may not have Kremlin approval. The smelter, seen as the anchor tenant for the Coega Industrial Development Zone, has been on hold for several years. Pechiney, the company originally expected to build it, dithered over a final decision and it has since been taken over by Alcan.
Vekselberg, who serves on President Thabo Mbeki’s international investment council, is among the Russian oligarchs who have managed to stay on the right side of the Kremlin. Members of the Russian media travelling with Putin pointed out that unlike other business leaders in the delegation, who were greeted with a perfunctory nod, he was granted a brief informal chat with the Russian leader and Mbeki.
Speaking at a press conference on Tuesday, Putin told journalists that trade and investment between Russia and South Africa ”” currently a miniscule R1-billion per year ”” had lagged behind the closeness of political ties between the two countries.
Certainly it was political business, from Coega to nuclear collaboration, that was at the forefront of Putin’s visit.
South Africa has agreed to source fuel for the Koeberg reactor from Russia until 2010. Hitherto, it has come from France. Further nuclear cooperation is also on the cards as Public Enterprises Minister Alec Erwin seeks to accelerate development in the local nuclear industry.
Public enterprises spokesperson Gaynor Kast said no alternative to the Alcan plant was currently being considered. “Renova aretalking about manganese smelters,” she said.
Continued next post
"Here is another shady character who seems to be in cahoots with Gilbertson.
Victor Vekselberg.
Vekselberg owns Sual. Sual has just combined with RUSAL to produce the biggest alminium producer in the world.
He also own Renova. Renova seems to a company in which Vekselberg uses to acquire raw materials like manganese which are used to produce aluminium.
In the SMH article Vekselberg and Renova may invest in CSM via Pallinghurst.
I would say this is what will happen.
PALLINGHURST WILL SELL csm'S MANGANESE BUSINESS TO RENOVA AND MAKE A NICE TIDY PROFIT FROM THE DEAL.
Just wait and see.
In the meantime just check out this article about Vekselberg and the Renova group.
Tell me if you don't smell something fishy.
v
v
v
v
Don't count your roubles
Nic Dawes, Stefaans Brümmer and Vicki Robinson
08 September 2006 07:56
Russian President Vladimir Putin was in South Africa this week for his first official visit with President Thabo Mbeki. (Photograph: David Harrison)
The R7,2-billion in foreign direct investment promised by the Russian investment group Renova may not be quite what it seems, documents detailing the financial structure of the deal suggest.
The most prominent among the business people accompanying Russian President Vladimir Putin on his first visit to South Africa was Renova chairperson Victor Vekselberg, Russia’s third-richest man.
Putin on Tuesday described Renova’s plans to build a ferrochrome smelter at Coega, and to link it to manganese mines in the Kalahari, as a $1-billion (R7,2-billion) investment in South Africa. On Wednesday, Vekselberg told journalists that investment in the smelter and mining operations would reach $1-billion over five years.
But documents and corroborating information obtained by the Mail & Guardian suggest that the total investment could be less than half that, and much of the money may come from local sources.
According to a 2004 Renova document obtained by the M&G, the Russian company estimated the total project cost to be between $300- and $400-million. Renova’s website gives the same figure.
The document envisaged that only a part of this would be Renova’s own money, saying: “Once a bankable feasibility study shall have been prepared, Renova shall undertake to arrange financing for subsequent stages of implementation … using all available opportunities and connections with major financing companies.”
In a document submitted to government last year, Renova committed itself to providing up to $50-million (R350-million) of project costs ”” again, until a “bankable feasibilty study” is completed. Chief among these initial costs is an estimated R276-million in prospecting expenses. This document is silent on the smelter.
The only mention of a $1-billion figure is in the 2004 document. It says that the “estimated … market value” would be $500-million to $1-billion. This is a measure, not of the investment needed to get the project up and running, but of its value once that has been achieved.
It appears that a locally based consulting firm, Bateman, may be doing much of the fundraising legwork. According to the Russia Journal, which has published a series of articles questioning the plausibility of Renova’s investment promises, Bateman has confirmed in a statement that it is helping Renova to raise the funds. “Cooperation with Bateman on this aspect will allow Renova to exploit financing opportunities for joint projects, including ‘Manganese of Kalahari’,” the company said.
Last November Bateman confirmed the agreement with Renova: “As Bateman is not only a process engineering company, but also experienced in structuring financing packages for global projects of all sizes, the [memorandum of understanding] will allow Renova to exploit financing opportunities for joint projects.”
In short, there is no guarantee that more than $50-million will flow from Russia into South Africa. The balance of the required investment, which could be anywhere between $350-million and $950-million, would have to come from local and international financial institutions, or a stock market listing.
How that would affect the 51% BEE shareholding in United Manganese of Kalahari, the company through which Renova participates in the manganese project, is not clear. But it would almost certainly dilute it.
According to Business Day Vekselberg and Russian Natural Resources Minister Yuri Trutnev also hinted that Renova subsidiary Sual, headed by South African Brian Gilbertson, and rival firm Rusal were interested in the stalled $2,7-billion aluminium smelter project at Coega.
The two firms are currently the subject of intense speculation over a possible merger, which, according to Russia watchers, may or may not be in the works, and may or may not have Kremlin approval. The smelter, seen as the anchor tenant for the Coega Industrial Development Zone, has been on hold for several years. Pechiney, the company originally expected to build it, dithered over a final decision and it has since been taken over by Alcan.
Vekselberg, who serves on President Thabo Mbeki’s international investment council, is among the Russian oligarchs who have managed to stay on the right side of the Kremlin. Members of the Russian media travelling with Putin pointed out that unlike other business leaders in the delegation, who were greeted with a perfunctory nod, he was granted a brief informal chat with the Russian leader and Mbeki.
Speaking at a press conference on Tuesday, Putin told journalists that trade and investment between Russia and South Africa ”” currently a miniscule R1-billion per year ”” had lagged behind the closeness of political ties between the two countries.
Certainly it was political business, from Coega to nuclear collaboration, that was at the forefront of Putin’s visit.
South Africa has agreed to source fuel for the Koeberg reactor from Russia until 2010. Hitherto, it has come from France. Further nuclear cooperation is also on the cards as Public Enterprises Minister Alec Erwin seeks to accelerate development in the local nuclear industry.
Public enterprises spokesperson Gaynor Kast said no alternative to the Alcan plant was currently being considered. “Renova aretalking about manganese smelters,” she said.
Continued next post
