Tuesday, August twelve, 2008.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

Ratings agency Moody's Investors Services announced a cut in State-owned Eskom's local and foreign currency ratings on Monday. It also cut its baseline credit assessment, while sustaining a negative outlook for all three indices.

This was despite assurances from the National Treasury that it would frontload its promised R60-billion support for the power utility, as well as hints of possible additional support that Finance Minister Trevor Manuel offered in July.

Moody's said that it viewed government's recent announcements positively, but that there was still uncertainty over "the likely future behaviour of government towards its wholly-owned subsidiary". It lowered the local currency rating of Eskom to Baa2 from A1.

JSE-listed construction firm Group Five said on Monday that the construction sector, particularly in South Africa, would remain strong for the foreseeable future.

CEO Mike Upton reported a 77% increase in full-year profit. He said that the company was confident about growth in the next few years.

He noted that Group Five had significantly moved its place to align itself with where the hot markets were. These markets included oil and gas, power, mining, the public sector and projects in Dubai.

(audio clip)

The National Union of Mineworkers said on Tuesday that more than 700 union members at the Helem diamond mine in Swartruggens near Rustenburg have downed tools to demand better wages.

Spokesman Mxasi Sithethi said the union was demanding a minimum wage of R2 300 a month for surface workers and R2 500 a month for underground workers.

All workers are currently earning R1 500 a month.
Workers refused the 12% increase offered by the company. This increase would have boosted their earnings to R1 680 a month.

Also making headlines:

Tony Leon says that South Africa's future will be better than its past
The DTI promises a comprehensive offset update and denies that some projects are duds
South Africa is to unveil R5-billion in tax incentives for large projects later this year
ArcelorMittal buys 49% of Brazilian iron-ore miner
Former Sentula managers have been implicated in ‘irregular activities'
And, GFMS says the global gold hedge book is at its lowest level in over 20 years

In political news:

Robert Mugabe and the opposition are under growing pressure for a deal
Villagers refuse to move for Sudanese dam
The World Trade Organisation's farm mediator calls for the talks to restart soon
And, an Algeria suicide car bomb kills 6 people and injures 18

Sign off:
That's a round up of news making headlines today. For more on these and other stories, visit engineeringnews.co.za, miningweekly.com and polity.org.za