Details of the seminar are as below. Cost for the day is R1767 incl. VAT excluding any discounts.

A 10% discount is offered on groups of more than 3 delegates. Should you wish to register at the discounted rate please contact Marc Ashton on 082-561-1585 or e-mail marc@rival.co.za

WALKING THE LABOUR LAW TIGHTROPE

Implementing Labour Law Productively

Workshop date/time: Friday 23 July 2010 Registration: 08H45 Close: 16h30 

VENUE:   SA Chamber of Commerce and Industry, 24 Sturdee Avenue,
                             Rosebank, Johannesburg.

SEMINAR PURPOSE AND CONTENT
In South Africa the biggest challenge for employers is the balancing act of achieving a productive workforce without infringing upon the countless powerful labour laws protecting employees.

Via a comprehensive case study laden with practical learning points workshop delegates have fun while gaining crucial insights from the wrongdoings of a fictitious company called Mile High Airlines. They receive detailed input on how to balance labour law compliance with the effective management of the following functions:

MANPOWER PLANNING RECRUITMENT, SCREENING AND SELECTION
JOB DESCRIPTIONS AND PERSON SPECIFICATIONS
JOB ADVERTISEMENTS
REFERENCE CHECKING
INTERVIEWING
PRE-EMPLOYMENT TESTING
RECRUITMENT AND SELECTION LEGISLATION
PROBATION AND INDUCTION
ACTING APPOINTMENTS AND LEGAL PITFALLS
RETENTION OF KEY STAFF
TRAINING AND DEVELOPMENT DESIGN AND IMPLEMENTATION
CAREER PATHING AND SUCESSION PLANNING
EFFECTIVE SUPERVISION
PERFORMANCE IMPROVEMENT, MOTIVATION AND TEAMWORK
EMPLOYMENT EQUITY AND DISCRIMINATION
DISCIPLINE AND DISMISSAL
FAIRNESS AND THE CCMA

About the presenter:
Ivan Israelstam, CEO of Labour Law Management Consulting
Ivan Israelstam has 14 years experience as a litigator at CCMA and 4 years as a CCMA Commissioner. He writes numerous labour law columns in major publications and is the author of labour law books. Ivan chairs SACCI’s Labour Relations committee and gives conference, seminar, radio and TV talks.

The competition is organised by financial journalist and entrepreneur Marc Ashton and supported by highly respected marketer and author Scott Cundill from Majestic Interactive.

“Locally there has been a lot of focus on start-ups – particularly in the technology sector – but start-ups are initially low impact employing a handful of skilled people and run very high failure rates,” says Ashton.

“What about the businesses that have already done the legwork, made their mistakes and are now looking to scale up? That is where a competition like Punk Your SME comes in,” he adds.

Based on the “Pimp your ride” reality TV concept, the competition will every three months see the team giving away advertising, marketing material, technology to make small businesses run better as well as a round table mentoring and strategy session with top South African entrepreneurs to provide suggestions for scaling the business up.

The competition also provides an opportunity for the organisers to collect data toward their Entrepreneur Confidence Index which will provide relevant information on entrepreneurial activity in South Africa as well as try identify pains that the small business sector may be experiencing.

How to get involved:
Entrepreneurs looking to get involved with the competition can send an e-mail to marc@rival.co.za with the subject line: “I Want To Punky My SME”.

Alternatively entrepreneurs can join the “Punk Your SME” Facebook group to be kept up to date with industry happenings.

One of the key strategies for the organisers is to leverage the “social lending” spirit which is becoming increasingly prominent in South Africa. Those looking to contribute skills, services, mentoring, products or make cash donations which can be put toward each quarters’ prize can contact Marc Ashton on 082-561-1585 or e-mail to discuss further.

The deal is designed to offer a more complete solution to their respective clients’ needs in the OHADA region and further develop their regional law practices. 

OHADA – the Organisation for the Harmonisation of Business Law in Africa – is an international organisation created in 1993 and currently comprising 16 member states.

Both firms have collaborated on projects and transactions in West Africa for a number of years.

Roddy McKean head of Webber Wentzel’s Africa Practice said that Webber Wentzel’s work in Africa now represents a significant and growing part of the firm’s practice. 

“Being able to draw on the recognised expertise and know-how of one of Africa’s leading law firms is a boon for us. Webber Wentzel gains access to Bile-Aka, Brizoua-Bi & Associés’ capability, knowledge and expertise under OHADA business law and its on-the-ground experience throughout West-Africa
 
“By combining our expertise with the insight of local partners, we provide our clients with a competitive advantage when operating in Africa. “

The firms will also share business and legal intelligence and set in place a secondment programme amongst other strategies to service clients.

Michel Brizoua-Bi, Head of the International Department at Bile-Aka, Brizoua-Bi & Associés commented: “Webber Wentzel has strong industry experience in key sectors in Africa.  The association of the two firms’ strengths and knowledge of African business environment reinforces our ability to provide legal advice of an international standard. 

“We have worked extensively with Webber Wentzel and have found that we share a similar vision about the need for more collaboration and integration between leading African firms”.

In a move to service better its clients in Francophone Africa, Webber Wentzel also recently appointed Steven De Backer as a director in the Africa Practice. Steven, who grew up in the Democratic Republic of Congo and was previously with Freshfields in Brussels and Mkono & Co in Burundi and Dar-es-Salaam, has brought extensive on-the-ground experience of leading transactions in Francophone Africa. 

Steven is backed by a team of French speaking and civil law qualified lawyers who are able to assist clients in relation to their transactions and operations in Francophone Africa.

Webber Wentzel is currently acting for Vale SA, the world’s largest iron-ore producer, in relation to its investment in Guinea and its implementation of the multi-billion dollar Zogota project. 

The firm is also currently advising clients on a variety of matters in Francophone countries such as the Democratic Republic of Congo, Burkina Faso, Côte d’Ivoire, Burundi and Senegal.

Dear Shareholder,

At the company’s Annual General Meeting held in Melbourne a few weeks ago, there was considerable discussion of the Government’s proposed Resource Super Profits Tax. Your board has serious concerns about the impact of this proposed new tax, not only for Rio Tinto and the mining industry, but indeed for the whole of Australia’s future economic prosperity. During the course of the meeting, it became apparent that your board’s concerns were widely shared by shareholders, as a result of which I have decided to write to you to express our misgivings in clear and simple terms.

When the Henry Tax Review was first announced by the Government two years ago, Rio Tinto indicated clearly that we wanted to be positively engaged in the process. We have been long time supporters of genuine tax reform that enhances the efficiency and competiveness of the Australian economy. The proposed super tax does not deliver either of these goals. In fact, the Government’s proposal will penalise efficiency, discourage competitiveness, curtail investment and limit jobs growth.

Rio Tinto, like the rest of the mining industry, has grave concerns about the fundamentals of the new tax. It has been developed in a vacuum and is divorced from the day-to-day realities of business. 

We are particularly concerned by the application of the tax to existing projects. The mining industry invests billions of dollars a year in new projects and most of these projects take years, even decades, to pay back that investment. Companies like Rio Tinto are naturally only prepared to make such major long term commitments in stable legal, tax and regulatory environments. The Government’s current proposals, arrived at without consultation, have now significantly destabilised that investment framework. As a result, there has been a considerable increase in the perceived risk of investing in Australia, threatening to make Australia a much less attractive place in which to invest.

The risk that unexpected and unforeseen government action will negatively impact on the value of investments is often referred to as “sovereign risk” and, with almost half our Group’s assets invested in Australia, I am sure you will understand why our Chief executive, Tom Albanese, recently referred to Australia as now being his number one sovereign risk concern.

Under the proposed super tax, the industry will be taxed at a rate approaching 57 per cent, which means that Australia will have the highest taxed mining industry in the world. With such a high tax rate, the attractiveness of investing in mining in Australia will be further reduced. Other countries will benefit as investment shifts from Australia to more attractive tax regimes.

We are currently reviewing all our projects in Australia under the worst-case tax scenario to assess the impact the proposed super tax will have on our future growth plans. However, what is abundantly clear to us, is that had this tax been in place ten years ago, we would not have invested as much as we have in the Pilbara, and Rio Tinto would have been a much smaller producer of iron ore today.

The mining industry has assumed a critical role in the ongoing economic success of Australia. We played a major part in ensuring that Australia did not suffer as harshly as the rest of the world from the effects of the Global Financial Crisis. It is crucial that any tax reform does not undermine Australia’s strongest industry. 

We are particularly concerned that the Government announced the super tax proposals without any prior consultation with the industry. Since that announcement, we have continued to emphasise our desire to enter into constructive engagement with the Government, on the basis that genuine consultation would require that all aspects of the proposed tax are open for discussion. We are keen to work positively with the Government on tax reform that would not damage Australia’s competitiveness, its mining industry or the superannuation funds of millions of Australians.

Rio Tinto’s contribution to Australia
I have been deeply concerned about the misrepresentations that have been made about Rio Tinto during the course of this debate. In particular, there has been speculation around the actual amount of taxation that we have been paying in Australia. Rio Tinto has always paid its fair share of tax. We recently released data independently verified by our auditors, PricewaterhouseCoopers, which confirmed that we have paid tax at an effective rate of 35 per cent on our Australian profits over the past decade.  From 2000 to 2009 our corporate tax and royalties paid amounted to A$20 billion.

The ten-year analysis also underlined how Rio Tinto has reinvested its Australian profits back into Australia.  From 2000 to 2009 we generated net profit after tax of about A$37 billion in Australia and re-invested about A$38 billion back into Australia – A$26 billion in capital expenditure and A$12 billion in acquisitions.

We are also proud of the wider contribution we make directly to the Australian community. In 2009, we employed more than 19,000 people across 36 operating sites, and we continue to be the largest private sector employer of Indigenous Australians. We supported more than 1,000 socio-economic programmes in Australia across health, education, business development and environmental protection, at a cost of some A$35 million. We also contributed a similar amount in direct payments via trusts and impact benefit agreements with host communities, taking our total direct community contributions in 2009 to more than A$70 million. I believe this clearly reflects our commitment and desire to actively engage in helping to build a better Australia.

What are we doing?
Rio Tinto has sought a genuine consultation process with the Government on the proposed super tax and has assured it that we remain willing and able to engage in constructive discussions.

We continue to work with our industry colleagues and the Minerals Council of Australia to ensure that our position on the super tax proposals is effectively communicated, not only to the Government, but also to the Australian community.

What can you do about the new mining tax?
If you want more information about this important issue and to make your voice heard,     I would encourage you to visit the Keep Mining Strong website at keepminingstrong.com. At this website you will find regular updates and it will also provide guidance about how you can actively participate in this debate.  For further information regarding Rio Tinto’s contribution to the debate please visit www.riotinto.com.

Rio Tinto has been contributing to Australia’s development more than 100 years and Australia has always played an important role in Rio Tinto’s success.  We believe we are part of an industry that has contributed hugely to the wealth, success and development of Australia.  We do not want that to change.  

Yours sincerely

Jan du Plessis
Chairman

Leading international fund managers have confirmed their attendance at the event in Harare on June 7 and 8, says Sean Gammon, MD of Harare-based Imara Capital Zimbabwe.

Imara expects investment professionals from the USA, UK, Europe and South Africa. Last year the Pan-African financial services group created history by successfully staging Zimbabwe’s first in-country international investment conference since the formation of an inclusive government.

“The follow-up indaba has a ‘let’s get down to business’ feel about it,” says Gammon. “The accent this time around will be on assessing the reality of corporate Zimbabwe, rather than just the undoubted blue-sky potential.

“The major signal sent on the run-in to the conference is that solid support is forthcoming from fund managers, despite concerns about the final form that Zimbabwe’s indigenisation legislation may take.

“It is no longer a novelty for African ‘frontier markets’ to be represented in the portfolios of major fund managers. Investment risk is different in Africa, but we’ve seen that developed economies also carry risk. All in all, the risk-and-return proposition within African markets has growing appeal. A follow-up investment indaba here in Harare confirms it.”

The conference format is designed to facilitate serious investment. After macro scene-setting, senior executives from major listed Zimbabwean companies will make individual presentations to fund managers.

One-on-one sessions will give prospective investors an in-depth look at the performance of market leaders that have achieved sustained growth with little reliance on debt.

Says Gammon: “Dollarisation has helped to resuscitate Zimbabwe’s economy and enabled many companies to step up production. The timing of the conference is important as it gives fund managers a chance to assess corporate performance post-dollarisation.

“Some investors may have taken a position soon after dollarisation and will be checking corporate performance one year on. Those who took a wait-and-see approach will be just as keen to assess dollarisation’s impact.

“In either scenario, the Imara conference fulfils a vital role.”

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Highlights                                                                     
-    ConRoast development programme successfully concluded;                    
-    ConRoast established as the solution for platinum industry:  smelts 50 000 tons of PGM concentrates during its development programme;                 
-    ConRoast outperforms the traditional smelting process on treatment of – chrome rich PGM concentrates; and                                          
-    Jubilee now focussed on construction of new commercial-scale ConRoast facility.
                                                                  
Abiel Mgomuzulu (CEO of Mintek) said “The successful conclusion of the research and development phase for the ConRoast smelting solution, affirms Mintek`s   successful track record of forming partnerships with Industry for the development of technologies that provides solutions to the challenges faced by  the Mining and Minerals Industry. Mintek remains committed to this process and will continue with technical support to Jubilee as they commercialise the ConRoast process.”

Colin Bird (CEO of Jubilee) said “Jubilee is delighted that the research and development phase has been successfully concluded.  The ConRoast process has throughout its development phase demonstrated that it is an environmentally friendlier, safer and more efficient processing solution than the traditional matte-collection furnaces for the recovery of platinum group metals from chrome rich concentrates.  To date the demonstration facility at Mintek has achieved  
the necessary results confirming that the ConRoast smelting route is the industry solution for chrome rich concentrates.  We thank Mintek for the support as our technical partner and look forward to our ongoing relationship during and after the commercialisation phase.”

At the end of March, Mintek and Jubilee concluded that the technology development necessary for the first commercial ConRoast smelter has been completed. Consequently, treatment of material in the Mintek facility for      
demonstration purposes ceased at the end of March, so that Jubilee could focus on the commercialisation of ConRoast. Jubilee is well advanced in the establishment of a commercial ConRoast facility. Mintek continues to support the process, and looks forward to seeing the first commercial project being implemented soon.

As part of the conclusion of the research and development programme, Mintek and Jubilee have agreed that ownership of the Braemore-installed demonstration plant at Mintek will pass to Mintek.                                                 

The furnace has been in operation for the past six years, primarily acting as a large-scale demonstration unit for Mintek`s patented ConRoast process, to which Braemore Platinum (Pty) Ltd (“Braemore”), a wholly owned subsidiary of Jubilee,  holds the exclusive worldwide rights. ConRoast is now widely recognised as an  environmentally friendly and safe way of smelting PGM concentrates, especially  for the troublesome high-chromium concentrates emanating from the UG2 Reef that have resulted in a number of furnace failures in the PGM industry over the past few years.

Since October 2007, the enlarged demonstration furnace at Mintek has been treating a wide range of PGM-bearing feed materials on behalf of Braemore. These final trials marked the conclusion of a very successful development period during which ConRoast established itself as the new, safe and environmentally  friendly smelting solution for PGM containing concentrates. Braemore has funded the further development of ConRoast through pilot plant testwork at Mintek and overseas as well as the expansion of the smelting facilities at Mintek. 

Consequently Braemore holds the exclusive rights to ConRoast for the roasting,  smelting and downstream refining of PGM-containing feed materials.Mintek will continue to investigate opportunities to use the facility for a    
combination of further development work, process demonstration, for revenue-generating and training purposes. 

This work will assist in establishing further opportunities for the use of DC-arc furnace technology, especially with regard to facilitating opportunities related to junior and black-economic-empowered entities.

Eskom Acting Chairman, Mpho Makwana, explains: “The agreement, effective 31 March 2010, removes the impact of embedded derivatives on Eskom’s balance sheet, as well as all onerous conditions.  This amended agreement is also an important step in ensuring that both Eskom and BHP Billiton continue advancing the growth and development of southern Africa. We commend BHP Billiton for this unprecedented step on signing the amended Mozal contract, which shows their commitment to South Africa and the SADC region.”

Whilst discussions relating to the South African smelters are continuing over the coming months, the BHP Billiton smelter contracts at Hillside and Bayside in Richards Bay will remain firm and binding. Eskom will maintain its interruptibility at the smelters in line with the provisions of the contract.

Xolani Mkhwanazi, BHP Billiton Chairman, said: “BHP Billiton remains acutely conscious of the electricity supply challenges facing South Africa and the region and has been exploring innovative and sustainable solutions to these challenges. With the announcement of the amended Mozal agreement, Eskom and BHP Billiton remain confident that, given the necessary time and commitment, innovative and mutually beneficial solutions will be found for the South African smelters. The smelters continue to make an important contribution to the South African economy and at present continue to fulfil a commitment to a 10% power reduction. Eskom’s success is our success and we will continue to work with Eskom to address issues of common concern.”

The new pricing agreement will be submitted to the National Energy Regulator of South Africa for approval.

Retail commodity warrants allow investors to access the global commodity market from South Africa. Warrant holders will have the opportunity to make a rand profit from the upward or downward movement in the rand price of platinum. 

Brett Duncan, Director Equity Derivatives at Standard Bank says: “Investor interest in commodities as an asset class is growing steadily. Commodities provide local investors with the opportunity to build wealth on top of physical demand for metals, while also providing for a rand hedge instrument. The newly launched platinum commodity warrants give investors access to reasonably priced assets at higher than average yields.”

To invest in warrants investors pay a small price for the warrant but are exposed to the full value of the underlying asset. A small change in the price of the underlying commodity or exchange rate will therefore result in a greater change in the value of the warrant. The advantage of warrants for retail investors is that losses are limited to the initial purchase price of the warrant. Standard Bank is the only flat rate warrants broker in South Africa.

Duncan says: “The introduction of gold, platinum and oil warrants is aimed at providing for increased demand in commodity instruments. The introduction of these commodity warrants builds on other offerings which will provide investors with further exposure to commodities.”

Leanne Parsons, JSE Chief Operating Officer says: “We are delighted to welcome Standard Bank’s platinum warrant to the exchange. In listing this product, Standard Bank has expanded the number of ways that individuals can gain access to platinum investments. We look forward to working with the bank’s team to welcome more commodity reference warrants to the market in the foreseeable future.” 

For more information on platinum and gold commodity warrants and for educational information on warrants visit www.warrants.co.za

Credit insurer Coface South Africa says many of the bigger players were assisted by the demand for hundreds of thousands of tons steel required for Eskom’s new power stations. South African companies have been awarded the largest orders for structural steel in South African history and all this steel is being produced locally.

South Africa also has a significant backlog of infrastructural reinvestment that needs to be addressed. Because of this, sustainability of government’s Infrastructure Roll-Out Programme should last well beyond 2010. Therefore, South African steel producers are not looking at the current economic conditions as a threat to the future of the programme, with the recent drop in prices only alleviating some of the pressures associated with funding.

A further decline in the market is not expected, but current conditions should continue in the foreseeable future, with an improvement towards the end of the first quarter of 2010. Cashflow for many steel suppliers will remain the major issue, with the aim now being survival.

The few companies with the cashflow to carry some capital expenditure for a few months may attempt to position themselves to up their market share, if the market should turn in early 2010. Meanwhile the steel construction industry has doubled its production capacity since 2006 by investing heavily in new production facilities, equipment and materials management systems to the extent that South Africa currently has one of the best equipped and most productive steel industries in the world.

All indicators point towards a recovery in the steel price in 2010. This view is based on projected price increases in the raw materials used in the manufacturing of steel, electricity price increases, and an expected increase in demand for steel from the manufacturing sector.

A global iron-ore price settlement, 10% up on current prices, is expected from price negotiations between the major suppliers and consumers in the near future, with the rest of the world following suit. There are already indications of stockpiling taking place by major steel manufacturers, in anticipation of 2010 price increases.

The global demand for steel fell in the last 12 months. This resulted in a subsequent drop in the demand for coking coal. The most significant growth potential for coal lies in steel manufacturing. Some definite positive signs of an increase in demand for steel are already evident through the subsequent demand for coking coal.

The spot prices of coking coal and thermal coal have increased by 33% and 18% respectively in the last few months, with Eskom’s expected increased consumption also adding to the increase in demand. South Africa’s severe power shortages are likely to continue unless there is significant investment in new power stations with the resulting increase in demand for coal, and the demand for steel to build these power stations.
The biggest local consumer of steel products is the manufacturing sector, with structural steel (used mainly in infrastructure development) being the largest subsector, and building and construction; mining; and automotive sectors being the other major consumers.

The South African manufacturing sector bottomed out in April 2009, and although recovery has been painstakingly slow, there is a definite upward trend with year-on-year production decreases shrinking every month.

Given the delay or suspension of mining projects, necessitated by the current global economic slowdown, it is expected that the mining sector’s steel demand will also increase in 2010 as these projects get back on track.

The greatest threat to a recovery in the South African steel industry is the proposed increase of 35% per year for the next three years in the price of electricity. This will not only have a significant effect on the cost of producing steel, but also affect the production costs of manufacturers of fabricated steel products, and impact on the cashflow and steel consumption of the end-user, which effectively drives the whole industry.
Some inventory build-up to take advantage of the rising prices could also lead to a ‘technical recovery’ in the industry. As was the case in 2009, this ‘recovery’ could stimulate the industry and result in increased production by manufac-turers, but ultimately be short-lived. Should wholesalers and retailers become fully stocked, further orders could die down with the resulting cut in prices due to lack of demand. All stocks held will be devalued overnight and force players to reduce their margins or in severe cases even sell at a loss.

CEO Andries van Heerden says he is satisfied with the purchase consideration in light of the underlying net asset value and absence of debt in the acquired business.  The price will be settled fully in cash from available funding facilities.  The acquisition remains subject to statutory and regulatory approvals.   

With an annual output of approximately 1,2 million tonnes the Glen Douglas quarry south of Johannesburg will become the largest in Afrimat’s portfolio.  The mine was opened in 1954 and today holds dolomite reserves for the next 30 to 40 years.  Van Heerden is confident the acquisition will yield significant benefits for the group once Afrimat’s turnaround strategy optimises the mine’s efficiencies.  He realistically sees a two-to-three year horizon for realising its profit potential.  “The intention is to take advantage of the high volume output at Glen Douglas while reducing cost bases to equate more on a par with the group’s profitable quarries currently.”

He continues: “The metallurgical product from the Glen Douglas mine has a strong, loyal client base in the industrial minerals industry to the future benefit of our bottom line.”  Metallurgical dolomite is currently supplied to the steel industry.  Further, agricultural lime is provided to the agricultural industry in the vicinity.

However van Heerden points out that the acquisition is complementary to, and not divergent from the group’s current offering.  “The acquisition does not expose Afrimat only to new markets as around 50% of the product sales still falls into our traditional market,” he says referring to the mine’s commercial aggregates for surrounding construction projects.  Glen Douglas further holds a new order mining licence.

He highlights that the quarry entrenches Afrimat’s footprint in Gauteng and is ideally positioned for maximum growth with a highly competitive position over a wide radius.  “Glen Douglas will complement existing Afrimat quarries on the West Rand in serving the rapidly developing Western, South Western and Southern parts of Gauteng.”

Van Heerden concludes that the acquisition reflects the focused attempts of Afrimat’s management team to predict economic trends and pre-empt any negative impact with proactive growth strategies.  “Our management team’s ability to anticipate the direction of the market is a major competitive advantage.  It enables Afrimat to devise early innovative and creative solutions to counter tough trading challenges.”  In this vein he says other expansion initiatives of a similar nature may be on the cards and will be announced to shareholders when appropriate.