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BHP CEO Mike Henry has called for a "small set of common standards" covering environmental, social and governance (ESG) to underpin the access to capital required to unlock investment in the critical minerals needed for the transition to electric vehicles and renewable energy generation.

Speaking at the International Energy Agency's (IEA's) inaugural critical minerals summit in Paris, France, Henry argued that there were currently too many standards for the same ESG dimensions.

"This leads to confusion and dissipated effort," he said, while noting that investment in the production of minerals such as copper, nickel, lithium and some steelmaking raw materials was lagging energy transition requirements.

Using copper as a case study, BHP estimated that about $250-billion in growth capital to 2030, in addition to sustaining capital, was needed to support the decarbonisation needed for a "plausible 1.5 degrees scenario".

"Currently committed growth projects over this period only amount to around $40- or $50-billion today. More projects need to be identified, permitted and given the green light by those who are to invest in them," Henry said.

Addressing a gathering that included several government Ministers, including US Energy Secretary Jennifer Granholm, who cautioned about the potential for critical minerals supply to be "weaponised", Henry called for a global convergence of ESG and governance standards.

"We need a small set of common standards, upheld by all, and where performance against those standards is a greater and increasing determinant of access to capital."

Such investment should be done with the least possible impact to the environment.

Miners, he added, should be granted access to resources based on the value they create, including for host communities and First Nations peoples.

"Opening a mine, done well, creates sustainable wealth and jobs [and] it brings tax revenues which, in turn, fund public services like health and education."

Granholm added that regulatory conventions needed to be "aligned like never before" to ensure ongoing security of supply.

"We are going to have to think creatively about more than just how to do this work, but how to do it right - we're in a race to save our planet and our people and we can't make that race a race to the bottom."

IEA director Fatih Birol said the issue of ESG standards harmonisation would feature during the closed portion of the conference and had also been identified as a priority by the IEA, which has already started raising concerns about the need for scaled-up investment to improve security of supply and to diversify supply chains.

In a recent report, the IEA highlighted the concentration of supply currently, with the Democratic Republic of Congo dominating cobalt supply, China holding half of planned lithium chemical plants and Indonesia representing nearly 90% of planned nickel refining facilities.

This point was underlined by European Commissioner for Internal Market Thierry Breton who said the European Union was determined not to "replace a fossil fuel dependency with a raw material one".

"We know that some could weaponise these dependencies against us," Breton added, noting the price that had been paid recently in the bloc following Russia's invasion of Ukraine.

Meanwhile, Henry also highlighted the potential difficulties in ensuring ongoing security of supply.

"This is going to be hard, as the grade or the percentage of metal in a given volume of ore is falling in existing operations.

"This means that more ore is going to be mined that doesn't need to be mined just to stand still.

"Newly discovered and developed deposits are, on average, incrementally lower grade as well; they're increasingly hard to find [and] oftentimes deeper and oftentimes smaller.

"Opportunities are being pursued in jurisdictions with less well developed or less established mining industries, institutions and governance.

"And, of course, societal expectations in respect of ESG and how va...

Eskom is aiming to limit loadshedding to Stage 4 during the summer months to the end of March by restricting unplanned breakdowns to 14 500 MW during what is also its high-maintenance season, when planned outages of about 7 000 MW will be implemented.

Interim CEO Calib Cassim indicated on Wednesday that the addition of 2 880 MW from the Kusile power stations would be critical for narrowing the prevailing supply/demand gap in the coming months and providing the space required for maintenance.

It would also be crucial to limit the use of the expensive diesel-fuelled open-cycle gas turbines (OCGTs), which were used extensively during winter to limit the intensity of loadshedding.

The utility has spent R11.9-billion since April 1 to operate its own OCGT plants at Ankerlig and Gourikwa, against a R30-billion budget for both its plants and the private OCGT facilities.

Despite this, loadshedding was implemented for 153 days during winter, with Stage 6 loadshedding implemented on 39 of those days.

No similar summer reprieve will be provided by the Koeberg nuclear station, however, where Unit 2 will be removed from service in early November once Unit 1 resumes operations on November 3.

Unit 1 has been out of service since December 10, when it entered what was originally meant to be a 180-day outage to facilitate the much-delayed replacement of its three steam generators; a requirement for it securing a licence to operate for a further 20 years.

There is no certainty yet, however, on whether Koeberg will secure a Long-Term Operation licence ahead of the expiry of its current 40-year licence in July next year.

There is also no clarity on whether the regulator will agree to separate the Unit 1 and Unit 2 licences to reflect the fact that Unit 2 entered operation in November 1985, a year and a half after Unit 1.

Generation head Bheki Nxumalo confirmed again that Unit 3 at Kusile could be commissioned immediately once Eskom secured all its environmental approvals.

Ahead of Eskom's summer outlook presentation, Forestry, Fisheries and the Environment Minister Barbara Creecy upheld the decision of the National Air Quality Officer to permit the temporary operation of the Kusile coal power station using temporary stacks that bypass the flue gas desulphurisation pollution-control plant.

Therefore, Eskom was now only awaiting a decision by the Nkangala district municipality relating to an Atmospheric Emission licence appeal.

Nxumalo expressed optimism that it was still possible, once all the approvals were secured, to meet the revised return-to-service schedule of October 14 for Unit 3, followed by October 30 for Unit 1 and November 30 for Unit 2.

Nevertheless, he highlighted that the units had been idle for nearly a year and that there were likely to be "teething issues" during commissioning.

Besides Kusile, Eskom also expected to secure 1 500 MW from the troubled Tutuka station, which operated for most of winter with only one unit.

Nxumalo reports that three Tutuka units are currently operating and producing 1 600 MW.

He also reported solid progress in Duvha and Majuba's turnarounds, but said Kendal still required attention.

Transmission head Segomoco Scheepers said that, should breakdowns be restricted to below 14 500 MW during summer, there would be 116 days of loadshedding across the 213 days until the end of March and that the intensity of such cuts would be restricted to Stage 4 or below.

Should breakdowns rise to 16 000 MW or 17 500 MW, however, the number of loadshedding days would rise to 187 and 211 respectively, while the intensity of the cuts would be between Stages 5 and 7.

Government has committed to finalise a Freight Logistics Roadmap, outlining a sequenced set of actions to fundamentally reform the logistics system, by the end of October.

The commitment was made at a meeting of Cabinet members and senior business leaders held at Discovery Place in Sandton on September 26, chaired by President Cyril Ramaphosa.

In a joint statement following the meeting, government and business reported that their current collaboration in the logistics focal area was centred on ensuring implementation of immediate operational interventions, which had already been defined, alongside the development of the Freight Logistics Roadmap.

Business again emphasised the urgency of the roadmap in the context of the ongoing challenges in the logistics system, with Transnet's rail business being a particular problem area.

Both business and government, meanwhile, stressed the need to support the Transnet board in its turnaround efforts.

On September 1, Public Enterprises Minister Pravin Gordhan gave the board three weeks to provide him with recommendations and decisions on the operational transformation of the business and to identify the root causes of the inability of management and staff to meet performance targets.

He also demanded a review of the executive management, with a view to establishing "whether persons with the right skills are optimally utilised to deliver on the mandate".

In a joint statement, government and business also confirmed that six of the eight work streams of the National Logistics Crisis Committee (NLCC) were fully operational, while the remaining two woud transition from Operation Vulindlela to the NLCC.

"Interventions to improve the operational performance of the multimodal bulk freight rail network and port system are well under way through the NLCC.

"Corridor Recovery Teams have been established for five strategic corridors, comprising Transnet managing executives, industry representatives and independent experts, and a delivery plan has been developed with specific actions and timeframes to achieve the targeted increase in freight volumes."

In addition, a multi-disciplinary team had been formed to address congestion at the Lebombo border crossing, which had reportedly resulted in a reduction in the border processing time.

Law enforcement agencies were also working to protect rail infrastructure through a range of interventions, including aerial surveillance on the North and Central Corridors as well as the Majuba rail line.

Government and business also reported that a dedicated work stream had been established to expedite the restoration of passenger rail services.

ENERGY & CRIME?

The other focus areas being pursued under the collaboration initiated in June related to the ongoing electricity crisis and interventions to tackle crime and corruption.

Progress highlighted in the electricity sector, included:

delivery, through the National Energy Crisis Committee, on the Energy Action Plan, which should result in over 12 GW of generation capacity being recovered or added to the system by the end of 2024;

coordination through the Energy Council of South Africa of nearly 130 volunteers from the private sector to work in partnership with Eskom and government, including the deployment of technical support teams at Kendal, Kriel, Majuba, Matla and Tutuka, as well as to support the return of three inoperable Kusile units;

the tabling of the Electricity Regulation Amendment Bill in Parliament, which had since launched a public comment phase;

the approval of three licences for the National Transmission Company of South Africa; and

the establishment of a one-stop shop for energy projects and the signing of a memorandum of understanding with the Energy Council of South Africa to enhance capacity and further streamline regulatory processes.

In the crime and corruption area, the collaboration was focused on building capacity within the National Prosecuting Authority (NPA) and Directorate for Priority Crime...

Forestry, Fisheries and the Environment Minister Barbara Creecy has upheld the decision of the National Air Quality Officer (NAQO) to permit the temporary operation of the Kusile coal power station using temporary stacks that bypass the flue gas desulphurisation (FGD) pollution-control plant.

The NAQO, in concurrence with the Nkangala district municipality, confirmed on June 25 that it had granted a postponement for the Kusile power station to meet Minimum Emission Standards (MES) from June 5, 2023, until March 31, 2025.

The decision, which carried several conditions, was made to enable Kusile to resume production, using temporary stacks, some 12 months earlier than would have been the case had the power station's three units been restored permanently.

The units were damaged on October 23 after the Unit 1 flue duct collapsed owing to a build-up of slurry. The collapse also compromised the Unit 2 and Unit 3 flue ducts, which share a chimney with the Unit 1 flue.

However, the NAQO decision was appealed on July 6 by the Vukani Environmental Justice Movement in Action and groundWork, represented by the Centre for Environmental Rights.

In the appeal, the groups acknowledged their concern about ongoing loadshedding, but also calculated at R24-billion the health impact costs of allowing for the FGD to be bypassed.

Eskom required both an adjudication of the MES appeal by Creecy, along with a decision on the Atmospheric Emission Licence appeal by the Nkangala district municipality before it could begin producing using the temporary stacks.

Appeals of this nature take 30 days to adjudicate and it is understood that Eskom submitted its responding statement on August 18 and that the last responding statement was received on August 21.

The Minister's decision was communicated to Eskom through the Department of Forestry, Fisheries and the Environment (DFFE) appeal office on the morning of September 26. The Nkangala decision on the appeal of the Atmospheric Emission license was still awaited.

Eskom told Engineering News that Creecy had included two amended decisions which required it to report progress with the repair of the permanent stack and on compliance with the conditions of the decision monthly rather than quarterly.

The reporting would include ambient air quality and health monitoring, with Creecy also adding a requirement for the inclusion of health monitoring of chickens and pigs at nearby farms.

The original decision stipulated only that Eskom should take measures to mitigate against the exposure of its employees and surrounding communities to harm and the utility's health impact mitigation plan was approved by the DFFE on September 18.

"Eskom has made progress with the implementation of this plan on site and has placed additional ambient monitoring stations in communities which could be impacted by increased sulphur dioxide emissions," the utility said in response to questions posed by Engineering News.

Speaking during a briefing on the implementation of the Energy Action Plan on Tuesday, generation head Bheki Nxumalo confirmed again that Unit 3 at Kusile could be commissioned immediately should Eskom secure a favourable appeals outcome.

Responding to an Engineering News question on whether it was still possible to meet the revised return-to-service schedule, of October 14 for Unit 3, October 30 for Unit 1 and November 30 for Unit 2, Nxumalo expressed confidence and reaffirmed that the project was ahead of schedule.

Nevertheless, he highlighted that the units had been idle for nearly a year and that there were likely to be "teething issues" during commissioning.

"But we should be able to meet the timelines that the Minister [Kgosientsho Ramokgopa] has shared previously."

The Industrial Development Corporation (IDC) has reported a 147% surge in disbursements to R17.8-billion for 2022/23, up from only R7.2-billion in the prior year - a performance that is within range of the R20-billion target that has eluded the development financier for several years, and which the Covid pandemic disrupted further.

The State-owned institution also recorded a 29.4% rise in approvals to R20.7-billion and outgoing CEO TP Nchocho told Engineering News that the transaction pipeline remained strong, despite difficult trading conditions that were being compounded by ongoing power and water cuts and the collapse of the freight rail service.

Nchocho attributed the rise in disbursements partly to the fact that several large transactions were concluded during the period, including a R3.5-billion deal to support a Northam Platinum expansion.

However, he also highlighted efforts that had been made internally to improve transaction origination and execution, including an initiative to ensure that investment and risk teams were working more closely upfront to accelerate due diligence processes.

This "new ways of working" initiative had also not been dislodged, he said, by the departure of several senior executives who had been headhunted during the period.

Some 30% of the group's energy team had been appointed elsewhere, while Reginald Demana was named CEO of the South African National Roads Agency Limited.

Whether the approval and disbursement performance could be repeated in 2023/24 would depend largely on whether some of the bigger transactions in the pipeline - such as ones being progressed in the automotive, coal, agriculture, and renewable-energy sectors - could be progressed to financial close before year-end.

While the public procurement renewables programme had failed to advance at the scale initially anticipated when procurement resumed in 2019, the IDC had a large pipeline of private independent power producer transactions in which it was hoping to participate.

"But even these have been tricky to bring to financial close," Nchocho revealed, with only R540-million in new approvals during the year and R1.1-billion in disbursements.

The IDC had earmarked some R7-billion for renewable energy approvals in the current financial year, while continuing to focus on industrial, mining, and agricultural investments and also pursuing opportunities linked to the nascent green hydrogen sector.

Group profit during 2022/23, meanwhile, rose 70% to R10.7-billion from R6.3-billion in 2021/22, supported by turnarounds at both Foskor and Grinding Media, which was formerly a Scaw subsidiary.

Foskor reported a R2.8-billion profit from a R477-million loss, the company's first positive contribution since 2012. However, the Foskor performance was supported by a R2-billion reversal of an impairment, which would not be repeated in the current financial year.

IDC's asset base decreased 5% to R161-billion from R171-billion, largely as a result of shifts in listed share prices, many of which remain linked to the commodity cycle, which had softened during the period.

Impairments and non-performing loans also remained of concern, although the non-performing load ratio fell to 34% from 56% in the prior year.

Three clients, including a Uganda hotel development, Kalagadi Manganese and Foskor accounted for 43% of the total non-performing loan book, which stood at R21.5-billion.

Nchocho, who would step down at the end of December, hoped his successor would be able to continue to sharpen the IDC's ability to execute transactions so as to sustain the momentum that had been re-established after the group was forced to retreat into survival mode during Covid.

He was also hopeful that the new leader would be able to support a more "distributed" investment model that facilitated the creation of many enterprises in varied locations rather than only a few large ones.

Following the acceleration of 2022/23, however, Nchocho expected the current year to be on...

The Department of Fisheries, Forestry and the Environment (DFFE) has confirmed that Minister Barbara Creecy is still adjudicating an appeal of the National Air Quality Officer's (NAQO's) decision to postpone a requirement for the Kusile power station to meet Minimum Emission Standards.

The NAQO, in concurrence with the Nkangala District Municipality, confirmed on June 25 that it had granted a postponement from June 5, 2023, until March 31, 2025.

The decision opened the way for Eskom to begin operating three units that have been out of service since October last year using temporary stacks that bypass the flue gas desulphurisation plant.

The units became inoperable on October 23 after the Unit 1 flue duct collapsed due to a build-up of slurry. The collapse also compromised the Unit 2 and Unit 3 flue ducts, which share a chimney with the Unit 1 flue.

On July 6, the Vukani Environmental Justice Movement in Action and groundWork, represented by the Centre for Environmental Rights, confirmed that they were appealing the decision.

The environmental group's stressed that they shared the concerns about loadshedding and its impacts on the economy and livelihoods. However, they questioned whether Eskom and the NAQO adequately evaluated the proposed solutions given the expected consequences and costs of the bypass.

"The increased emissions from Kusile are projected to result in 670 excess deaths, 3 000 asthma emergency room visits, 720 000 days of work absence and a societal costs of health impacts to the tune of up to R24-billion," the groups said. They added that bypassing the FGD would result in 280 000 t of sulphur dioxide emissions and a 40% increase in the emission of mercury.

During the appeal, Eskom is disallowed from returning the three 720 MW apiece units, the absence of which has contributed to 2023 being South Africa's worst-ever year for loadshedding.

The utility indicated recently that the project to build temporary stacks on units 1, 2 and 3 was ahead of schedule and that Unit 3 was now due for return on October 14, rather than the November 28 date initially communicated.

Under the revised schedule, once Unit 3, which is said to be ready for commissioning, is returned, it will be followed by Unit 1 on October 30, and Unit 2 on November 30.

Speaking following a seminar on future grid financing options, Electricity Minister Kgosietsho Ramokgopa reported that meeting the new return-to-service schedule "was a function of receiving an approval from the Minister [Creecy]".

He said Creecy was applying her mind to the matter and that he would "not be placing any pressure on her" to make a decision.

Ramokgopa confirmed that Eskom had provided Creecy with its response to the issues raised in the appeal.

"So, it's up to the Minister to either uphold the appeal or to reject it [and] that's what we are waiting for," he added.

DFFE spokesperson Peter Mbelengwa confirmed with Engineering News that an appeal had been received and indicated that it was envisaged that the decision would be the finalised in 30 days.

As D-Day for the Medium-Term Budget Policy Statement (MTBPS) approaches, it is evident that the National Treasury will need to go against the political grain if it is to achieve its objective of presenting a "credible fiscal framework".

That political grain is determined by the fact that 2024 is not only an election year, but an election year in which there is a real possibility that the governing African National Congress (ANC) might not achieve an outright majority, even though it is likely to secure the most votes.

Besides loadshedding, which remains the most obvious outward sign of the ANC's governance failings, voters are increasingly angered by the role that corruption and the deployment of under-skilled cadres have played in the collapse of most State-owned companies and the decay in just about every public service, from water and road repair to health and education.

While the Covid pandemic undoubtedly amplified the country's well-documented socioeconomic ills, blaming the pandemic is unlikely to win many votes. Likewise, there is a growing intolerance of those who blame apartheid nearly 30 years into democracy - a reality that has not yet dawned on some.

Given the short time left before elections, those in government would undoubtedly like to use the remaining months to put as much lipstick on the socioeconomic pig as is feasibly possible, using both 'show' and 'tell' techniques.

Through manifestoes, they will aim to 'tell' voters how resources will be directed their way in the form of everything from social grants to new services, while incumbent politicians will want to 'show' that they are delivering by having as many ribbon-cutting events as possible.

The last thing they want is a party pooper, who says there is no money for either show or tell. To deliver a credible fiscal framework, however, that is precisely the role the National Treasury must now play.

The reasons are clear for all but the ideologues to see: the lack of growth, together with ongoing and significantly more expensive borrowing, has placed South Africa on the very edge of a debt crisis; tax revenues are not keeping pace with the 2023 Budget forecast as the commodity windfall of 2022 dissipates; and daily power cuts and the collapse in the freight rail service are undermining any immediate turnaround.

Adding to its party pooper potential is the National Treasury's lead role in the review of the configuration of government, which many see as bloated, and its programmes. The reconfiguration is likely to result in departments and programmes either being culled or downsized.

These changes will receive a mixed response. They will be described as long overdue and insufficient by some and raise the ire of others, who will argue that austerity will further undermine the economy's recovery.

Given the stakes, the National Treasury should gird itself for the prospect of becoming a convenient scapegoat for those Ministers and party activist who will need someone to blame for their poor performances.

Eskom has indicated that it has sufficient funding for the coming three years for the grid infrastructure investments that will be pursued in line with its Transmission Development Plan, but says additional financing will be required beyond that point and that alternative funding and delivery models may also be required.

Speaking following a closed-door grid financing event hosted jointly by government and the JSE, Eskom transmission head Segomoco Scheepers said that the division currently worked on a five-year investment horizon and that it planned to invest R70-bilion over that period on new power lines and transformation capacity.

He reported that the investment pipeline was fully funded for the coming three years, largely as a result of the R254-billion debt relief package extended to the utility by the National Treasury, but that there would be a funding gap thereafter. Currently there is also a moratorium on Eskom raising additional debt.

Eskom, Scheepers said, was working with suppliers to ensure that there was sufficient capacity in place to meet its immediate requirements for new large transformers, as well as new power lines, which would require a secure supply of materials such as steel. It had also integrated an engineering procurement and construction approach to facilitate an acceleration in its delivery of new transmission infrastructure.

In addition, it was pursuing low or no capital options, such as curtailment and spatial diversity of generation sources, to unlock additional capacity in the short term, including for the upcoming public procurement rounds for additional wind and solar, as well as for gas-to-power.

Eskom and independent power producer (IPP) battery storage programmes were also expected to help unlock additional capacity.

The utility and government are hoping these interventions, together with new grid-access rules, will avoid a repeat of Bid Window Six when no wind projects advanced to preferred bidder status based on an assessment that the grid had been fully absorbed in the wind-rich Eastern, Western and Northern Cape provinces.

An assessment that was conducted subsequently found that the capacity of the existing Western Cape grid to host variable renewable generators could be doubled under a scenario where no more than 10% curtailment was implemented.

Curtailment involves the active reduction of output from wind and solar plants in response to system security needs or temporary transmission capacity constraints and is widely used by system operators to facilitate the introduction of renewable generators globally.

Eskom is expected to release its new curtailment framework soon after it publishes and updated Generation Connection Capacity Assessment, which will outline what grid capacity remains available for use and where.

However, it is also estimated that about R250-billion will be required to add 14 000 km of new power lines by 2023 at a yearly tempo of 1 500 km, up from a current yearly tempo of only 300 km, as well as to install 122 600 MVA of new transformation capacity, representing 77% of Eskom's current installed base.

Such an expansion would be needed so as to connect the 53 GW of new generation capacity that will be required by the early 2030s as coal plants are retired.

Electricity Minister Kgosientsho Ramokgopa indicated that the balance sheets of both Eskom and the national fiscus were unlikely to be sufficient to cover the country's future grid investment needs, but stressed that there was as yet no agreement on the approach to be taken regarding private sector participation.

He planned to produce a report for Cabinet to make a decision on the preferred approach.

Various possible models were assessed at the conference, including those in countries such as Brazil, Peru and the Philippines and the Minister highlighted, too, that South Africa already had some experience in auction models, given the success of the IPP procurement programmes.

The discussions that took place at th...

Engineering News editor Terence Creamer discusses the National Energy Regulator of South Africa's approval of two more licences required for the National Transmission Company South Africa (NTCSA) to begin operating, when the NTCSA is expected to start operating and what still needs to be done before then. He also discusses Parliament's call for public comments on the Electricity Regulation Amendment Bill.

The Strategic Partners Group (SPG) is the empowerment partner in the Gautrain, the rapid rail link owned by the Gauteng provincial government and run by the Bombela Concession Company (BCC).

When the current concession expires in 2026 will SPG continue to be a Gautrain participant, is the question that Engineering News put to SPG executive chairperson Mzolisi Diliza, who is also well remembered as the former CE of the then Chamber of Mines, which is now Minerals Council South Africa.

The Gautrain has been a significant component of SPG's business profile since the start of operations in 2012 as a viable black economic empowerment entity and is vigorously committed to extending its Gautrain involvement beyond the 2026 termination of the existing concession.

However, SPG's continued role as a Gautrain partner is not a foregone conclusion.

It has been made clear that the appointment of the organisations to maintain, upgrade and modernise the Gautrain, for what will probably be a 15-year extended period, will be subject to a tender process and Diliza made it very clear in his Zoom interview with Engineering News that SPG will definitely enter the tender process, which will most likely be conducted under the jurisdiction of the Gauteng MEC for Transport and Logistics. (Also watch attached Creamer Media video.)

SPG was formed in 2002 when Diliza, its founder, was on the lookout for investment opportunities that demanded the participation of a wholly owned black South African business entity and which would create value for the shareholders who had come on board.

SPG went to the market and raised the investment capital required from several financial institutions. The loans that were granted have subsequently been repaid.

Two South African companies - SPG and Murray and Roberts (M&R) - were signatories to the original Gautrain construction agreement.

British company Bombardier, a manufacturer of transportation equipment, and Bouygues a similar French manufacturing company, also signed and RATP-Dev, a French specialist high-speed rail transportation operator was involved on the periphery. RATP-Dev was subsequently absorbed into the Bombela Operating Company (BOC) from where it manages and supervises the operational needs of the Gautrain.

Of the four companies that signed the original Gautrain agreement, SPG is the only one that remains an active Gautrain participant.

In its current figuration, the Gautrain system is managed and controlled by the Gauteng provincial government, BCC, and operated by BOC. SPG has shareholdings of more than 35% in each of these organisations and a substantial portion of SPG's revenue is received in shareholder dividends paid by BCC and BOC.

Apart from dividends paid to shareholders, SPG also derives additional benefits from its Gautrain involvement.

At the time that the agreement was signed by the four startup entities, SPG, unlike the other three signatories which were well established global business organisations, was a commercial entity in a state of early growth and development.

As a result, Bombardier, Bouygues and M&R made commitments to a protocol agreement aimed at promoting revenue-enhancement opportunities for SPG in the supply of goods and services which would be subject to agreement on pricing, timing and capacity to deliver.

The Gautrain revenue enhancement opportunities offered to SPG were in advertising and kiosks; the commercial ICT Network; the fibre network; rail station WiFi; cleaning and maintenance services and, security services.

Virtually all of these operational opportunities have been exploited by SPG with security, cleaning and maintenance services provided at various Gautrain stations.

Gautrain advertising is a particularly active area of business with SPG having established a profitable joint venture with JCDecaux, a global outdoor advertising agency.

Many of South Africa's major companies, particularly in the finance and banking sectors regard the Gautrain stations as attra...