SOUTH Africa’s Mines Minister Susan Shabangu has approved recommendations allowing as many as four new black owned companies export entitlement at Richards Bay Coal Terminal. The recommendations are in terms of the long-awaited reorganization of South Africa’s Quattro system, which provides 4 million tonnes per year of export entitlement to black owned companies through RBCT.
The reorganization of Quattro became necessary when members of the Quattro scheme successfully applied for use of Phase V of RBCT’s expansion project commissioned in May last year. As a result, these Quattro members using both RBCT entitlement and Quattro have been double dipping.”
Bonga Ndabezitha chief director for mineral promotion at the minerals resources department said in terms of the recommendations roughly 700,000 tonne per year of export entitlement had been reallocated. Of this, Quattro members not receiving RBCT Phase V entitlement would be upgraded to 200,000 tonne per year while the balance would be provided to admit three to four new exporters to the system.
He told Minigmx that “The minister has approved the recommendations and we’ll begin the process of informing Quattro members from about Thursday or Friday next week.”
Quattro members who had won direct RBCT entitlement would not immediately lose their Quattro membership, but would be migrated from the system to RBCT direct entitlement over a period of three to four years. Access to rail and loading facilities is an enormously vexed subject. Although RBCT can export 91 million tonnes/year of coal following its Phase V expansion capacity limitations on the Mpumalanga-Richards Bay rail, which is managed by Transnet Freight Rail mean the terminal exports two-thirds of its capacity - possibly less this year.
Mr Ndabezitha said the appointment of Quattro’s new administrator would be decided next week. In February this year, the system’s administrator, Mhlatuze Bay Coal Administrators was subject to allegations it misappropriated ZAR 5.5million. The administrator was suspended pending an investigation.
In the meantime, an acting administer trading as UBU Logistics a company that, incidentally, has former public enterprises minister Alec Erwin as a director was retained to run Quattro while invitations for a permanent administrator were put out to tender. Two companies that tendered for Quattro’s management have been shortlisted with adjudication by the Code Industry Task Team.
Ndabezitha could not disclose if UBU was one of these companies. Mr Ndabezitha said that “We met last week to decide on criteria we would use to adjudicate the successful administrator.”
Criteria included the company's black economic empowerment status, track record, and its strategy for recovery administrative costs. Mr Ndabezitha said that “We will make a recommendation to the minister and we hope to make an appointment (on the new administrator) next week.” (sourced from Miningmx)
The reorganization of Quattro became necessary when members of the Quattro scheme successfully applied for use of Phase V of RBCT’s expansion project commissioned in May last year. As a result, these Quattro members using both RBCT entitlement and Quattro have been double dipping.”
Bonga Ndabezitha chief director for mineral promotion at the minerals resources department said in terms of the recommendations roughly 700,000 tonne per year of export entitlement had been reallocated. Of this, Quattro members not receiving RBCT Phase V entitlement would be upgraded to 200,000 tonne per year while the balance would be provided to admit three to four new exporters to the system.
He told Minigmx that “The minister has approved the recommendations and we’ll begin the process of informing Quattro members from about Thursday or Friday next week.”
Quattro members who had won direct RBCT entitlement would not immediately lose their Quattro membership, but would be migrated from the system to RBCT direct entitlement over a period of three to four years. Access to rail and loading facilities is an enormously vexed subject. Although RBCT can export 91 million tonnes/year of coal following its Phase V expansion capacity limitations on the Mpumalanga-Richards Bay rail, which is managed by Transnet Freight Rail mean the terminal exports two-thirds of its capacity - possibly less this year.
Mr Ndabezitha said the appointment of Quattro’s new administrator would be decided next week. In February this year, the system’s administrator, Mhlatuze Bay Coal Administrators was subject to allegations it misappropriated ZAR 5.5million. The administrator was suspended pending an investigation.
In the meantime, an acting administer trading as UBU Logistics a company that, incidentally, has former public enterprises minister Alec Erwin as a director was retained to run Quattro while invitations for a permanent administrator were put out to tender. Two companies that tendered for Quattro’s management have been shortlisted with adjudication by the Code Industry Task Team.
Ndabezitha could not disclose if UBU was one of these companies. Mr Ndabezitha said that “We met last week to decide on criteria we would use to adjudicate the successful administrator.”
Criteria included the company's black economic empowerment status, track record, and its strategy for recovery administrative costs. Mr Ndabezitha said that “We will make a recommendation to the minister and we hope to make an appointment (on the new administrator) next week.” (sourced from Miningmx)
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