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

Making headlines today:

On Friday, the National Energy Regulator of South Africa said that it had granted Transnet's petroleum pipeline system an increase in allowable revenue of 7,73%. However, not all pipeline tariffs would increase by this amount.

Nersa regulator member Dr Rod Crompton said that each pipeline was treated on its own merit. This was why the tariff percentage increase varied from pipeline to pipeline. The variation is between 0 and 10,2%, although the precise percentage increase for each pipeline is not clear.

Transnet Pipelines applied for a 15% tariff increase for the period April 2008 to March 2009. The company operates about 2 775 kilometres of liquid fuel pipelines in KwaZulu-Natal, Free State, Gauteng, North West and Mpumalanga.

On Friday, gold miner Gold Fields reported that it is closing the main shaft at its key Kloof mine for 6 months. This is to improve safety at its operations.

The move will cost the company in the order of 500 kilograms a month of gold. The company will lose a further 400 kilograms production of gold this year at its biggest mine, Driefontein. This is also owing to safety related measures.

On top of this, the company has put on hold 130 000 ounces a year of gold production from pillars-and-remnant areas at its two biggest mines. Further cutbacks are a possibility after it has completed a review on this type of mining at the end of the month.

CEO Nick Holland:
(audio clip)

South African synthetic fuels producer Sasol has hedged about 30% of its planned local synthetic fuels production for the remainder of the 2009 financial year.

The hedge will provide downside protection if the monthly average dated Brent crude oil prices are to decrease below 90 dollars a barrel on the hedged portion of synfuels production.

Conversely, Sasol will incur "opportunity losses" on the hedged portion of production if the monthly average oil prices are to exceed a volume weighted average of 228 dollars a barrel.

Also making headlines:

Transnet and Kumba announce a 4-billion rand railway expansion
Production of South Africa's superthin solar innovation is delayed
Telkom and trade unions fail to reach a pay deal
Harmony and Monarch terminate their Mount Magnet deal
Nick Holland says the gold price could hit 1 500 dollars an ounce next year
And, Eldorado Gold is getting back on its feet after its Turkey mine reopens

In political news:

Thabo Mbeki denies the arms deal allegations
Zimbabwe crisis talks resume
The ANC youth league resolves to asl for the recall of President Mbeki
And, a global AIDS conference begins in Mexico City

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