CIC Energy launches coal-to-liquids studies for Mmamabula

Toronto-listed CIC Energy Corp has begun a feasibility study, as well as a detailed market study, into a proposed coal-to-liquids project in Botswana, at the company's Mmamabula coal project, the firm said on Wednesday.
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CIC launches coal-to-liquid feasibility study

CIC Energy changes CEOs and launches a feasibility study into making gas and liquid fuel from its massive coal deposits in Botswana.
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CIC Energy announces commencement of coal-to-hydrocarbons feasibility study

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Other Corporate News In other corporate news, CIC Energy is pleased to announce that the Government of Botswana has approved the Environmental Impact ...
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Standard in R2.4bn home loan deal with partners (Dec 10, 2007)

Standard Bank has concluded a R2.4-billion home loan securitisation issue to help three financial institutions meet their Financial Sector Charter obligations.

This is a first for the South African market.

The Siyakha Fund (meaning we are building ), comprising R2.4-billion worth of low-income housing loans established by Standard Bank, has been structured as a private placement and issued to Liberty Life, Old Mutual and Investec Bank.

They will each receive equal portions of the issue.

Standard Bank’s Kennedy Bungane said: “This transaction is the first securitisation in South Africa of low-income housing loans, a new innovation for the South African debt capital markets.

“It is a landmark transaction in terms of utilising securitisation technology as a mechanism to enable financial institutions provide funding in respect of low income housing and thereby gain charter points.”

On conclusion of the charter in October 2003, Standard Bank committed to help those charter co- signatories whose business models precluded them from being able to directly provide housing finance to lower-income individuals to meet their charter obligations.

“Standard Bank is in the process of fulfilling its charter commitment to provide housing loans to the lower-income market.

“This has allowed us to package our surplus low-income housing loans and offer them to our charter partners,” said Bungane.

In the four years since the charter’s inception , Standard Bank has provided housing finance of R10.7- billion to the low-income housing market .

The target for the industry is R32-billion in low-income housing loans by 2008.

Botswana Investors Now Account for 15% Share in African Diamonds (12/11/07 15:12)

Investec Group Limited of Botswana purchased more than 7.5 million shares in African Diamonds, representing 10.09 percent of the issued share capital. Botswana based investors now hold more than 15 percent of the company, according to African Diamonds.

John Teeling, chairman of African Diamonds, said, "Over 10 percent of African Diamonds is a significant commitment and is very positive news for our shareholders insofar as knowledgeable investors on the ground in Botswana see value in our shares."

Botswana holds the "best diamond exploration address in the world" and Orapa (diamond mine) is the "best street," Teeling said. "African Diamonds intends to be a significant diamond industry player in its own right in Botswana."

Stillwater investors prevail in lawsuit

ou may have missed the article in The Moscow Times, but former directors of Stillwater Mining Co. have lost a lawsuit to some disgruntled investors.

On Monday, Bloomberg News Service picked up the story, apparently first printed in Russia, that investors who sued Stillwater officials for a breach of fiduciary responsibility five years ago have won a $2.6 million settlement.

According to Stillwater's last annual report, in 2002 some investors sued company officials in a Delaware Chancery Court and in federal courts in New York and Montana over "misleading statements about the company's financial performance" and its ore reserves. The New York District Court case was moved to Montana.

Negotiated settlement

On Dec. 7, Delaware Chancery Court Judge Stephen Lamb approved a negotiated settlement of $2.6 million, plus $50,000 in attorney fees.

"Plaintiffs achieved what they set out to achieve," Lamb said, according to the Bloomberg report.

The Delaware Chancery Court is a special court in Delaware that focuses on corporate matters with the authority to issue declaratory judgments and temporary injunctions. A federal judge in Montana also must approve the settlement.

The majority of stock - nearly 55 percent - in the Billings-based Stillwater Mining Co. is owned by Norilsk Nickel of Moscow. Norilsk bought controlling interest in the only U.S. producer of platinum and palladium in 2003. The precious metals are primarily used for jewelry and in catalytic converters for cars and trucks.

The Russian mining giant is the world's largest producer of palladium and nickel and a leading producer of platinum and copper. And the corporate partner to Stillwater Mining may be undergoing big management changes.

Last February, news reports said that one of Norilsk's two top investors, Mikhail Prokhorov, offered to sell his shares in the mining company to the other top investor and executive, Vladimir Potanin. Other reports speculated that outgoing Russian President Vladimir Putin may try to renationalize Norilsk Nickel as he consolidates control of oil and gas and other mining assets.

Premium price

Last June, after a fight with a Swiss-based company, Norilsk Nickel paid a premium price of $6.4 billion for LionOre, a Canadian nickel and gold producer that also operates in Botswana, South Africa, and Australia.

Stillwater Mining operates two Montana mines, the original at Nye and a second along the East Boulder River. The company was named as a "nominal defendant" in this investor lawsuit and no damages were sought, so the company issued no press release or U.S. Securities and Exchange Commission announcement about the settlement.

"The only reason I knew about it is it appeared on this clip service that we are trying out," said Dawn McCurtain, Stillwater Mining's marketing and investor relations officer. "I wouldn't expect to see this appear first in Moscow (and then) through Bloomberg."

Stillwater Mining isn't financially responsible for the settlement, McCurtain said.

"It actually comes from the insurance company," she said.

Investors who owned stock between April 20, 2001, and April 1, 2002, are eligible for part of the settlement, according to Bloomberg. No further details about the names of the former directors or how to apply for a settlement were immediately available.

"The entire litigation proceedings haven't been completed yet," McCurtain said. "When they are, information will be released on what to do next."

Stillwater Mining reported $613 million in sales in 2006. The mining stock has had a volatile ride this year, hitting a 52-week high of $16.47 on April 26 and a low of $7.93 on Aug. 16.

SMC, which trades on the New York Stock Exchange, closed at $10.34 on Tuesday, 48 cents off the opening price.

Modubule against liberalisation of power supply ( 11 December, 2007)

Some parliamentarians have questioned the logic behind governments proposal to liberalise the electricity supply sector to include independent power distributors who will depend on the Botswana Power Corporation (BPC) infrastructure.

Commenting on the electricity supply amendment bill last week, the MP for Lobatse, Mr Nehemiah Modubule rejected the proposal, saying it will not enhance competition because the competitors will be forced to use (BPC) infrastructure.

Mr Modubule argued that the main reason behind the proposed liberalisation is to prepare BPC for privatisation, adding that his party is opposed to the privatisation of public enterprises, especially those that are offering essential services such as power and water.

He said the government should have created an electricity supply regulatory body before it proposed amendments to the electricity supply law.

Mr Modubule appealed to the government to ensure that electricity connections were affordable, saying they were currently far beyond the means of ordinary people.

He also complained that people who apply for connections at new places that do not have electricity facilities are required to pay huge sums of money to purchase transformers, but that subsequent applicants are not required to contribute towards reimbursing the first applicant.

He said the ownership of the transformer purchased by the BPC consumer is not for that individual but is the property of the corporation.

Mr Modubule proposed that the government should absorb the costs of connecting electricity to houses and allow customers to pay the costs in installments.

Mr Mephato Reatile of Ngwaketse West said he supports the bill. He, however, questioned the criteria that the corporation uses to determine connection fees, adding that in some cases the cost of connection was higher than the value of the house being connected.

For his part, Mr Nonofo Molefhi of Selebi-Phikwe East also supported the proposed amendments. He expressed hope that the electricity cooperation between South Africa and Botswana would include other projects.

He suggested that the government should collaborate with the Botswana Development Corporation to identify investors who could embark on projects of the magnitude of Mmamabula and then later sell shares to local entrepreneurs as a means of citizen economic empowerment.

Mr Molefhi said he was worried that some Batswana sell their licence stakes without appreciating the benefits that they could get in the long term.

He urged the government to bear the costs of connecting people to ensure that electricity was accessible to the majority of the population.

Another MP who supported the bill is Mr Isaac Mabiletsa of Kgatleng East. He urged the government to ensure that Batswana had shares in important projects such as the Mmamabula coal mine and power station by facilitating their entry into big business ventures.

He requested the minister of minerals, energy and water resources to explain how the proposed project would impact on the unemployment and on what the revenue accrued from the project would be used for.

He proposed that the government should draft laws to compel big companies to enter into joint ventures with locals in order to empower them economically.

He said it was regrettable that Botswanas economy was by-and-large controlled by foreigners.

Stanbic Wins "Emerging Markets Bank of the Year" Award

11 December 2007

Stanbic Bank Botswana, a subsidiary of Standard Bank, has won The Banker's prestigious 'Emerging Markets Bank of the Year Award 2007'.

The accolade, presented at the annual Banker Awards dinner, held in London on 28 November, acknowledged the banking group's commitment to playing a key role in the financial services sector of several developing countries.

Stanbic Bank Botswana got the accolade after surpassing the P2 billion in their loans and advances utilization this year. In addition, the property division of the Standard Bank Group has just concluded the purchase of the premises of Stanbic Bank Botswana Head Office, in Fairgrounds.

Craig Bond, Chief Executive of Standard Bank Africa said: "These awards and achievements are a tribute to the strength of the group. Not only is Standard Bank the largest bank in Africa, but it is also both Pan-African and global in its reach and expertise. We believe that the combination of these attributes holds the key to developing a world-class banking sector in many of the emerging markets of Africa within the foreseeable future."

The Standard Bank group is particularly active in Africa, where efforts are focused on enhancing their portfolio of retail, corporate and investment banking services.

Standard Bank's contribution to the African nations where it has an established presence also resulted in the group receiving several country awards during The Banker awards ceremony - notably South Africa, Lesotho, Malawi, Mozambique, Swaziland and Zimbabwe.

Bond added: "The recognition inherent in these awards is most gratifying as it underscore's Standard Bank's position of being an African bank, run by Africans, to the benefit of the continent as a whole."

As one of the world's most established financial services groups and the largest banking group in Africa in terms of assets, earnings and market capitalization, Standard Bank currently operates in 39 countries across the globe.

The group has representation in 18 countries in Africa, including Botswana, and 21 on five other continents, including the key financial centres of Europe, the Americas and Asia. In Africa alone, the group has more than 1 000 points of representation.

A full range of banking, investment and lending products and services is offered to entities ranging from multinational corporations to individual income earners and their families.

These latest accolades build on an array of awards afforded Standard Bank for its activities in emerging markets. The list includes being named the leading banking group in sub-Sahara Africa in this year's The Top 1000 World Banks list. It placed 106th overall, up twelve places from the 118th spot in 2006. The annual rankings, published by The Banker and Financial Times, provide a comprehensive listing of the world's leading commercial banks based on Tier 1 Capital. The research and evaluation criteria include an assessment of banks' strengths worldwide, as well as diverse performance indicators - such as growth in real profits, profits on capital and return on assets.

Botswana: FNB Launches Firstplus

11 December 2007

First National Bank of Botswana (FNBB) has launched the FirstPlus Campaign, which brings an innovative array of products and services from the bank.

The package for the new products which FNBB launched under the FirstPlus campaign are the are the FirstCardPlus (FirstCard), e-Plus (Electronic Banking), MortgagePlus (Home Loans), ChequePlus (Cheque Accounts), Savings Accounts - SavingsPlus, and WesBank - WheelsPlus.

Bomolemo Selaledi, Head of Marketing and Communications said her bank is now going to the market with an array of solutions that have been bundled and packaged to meet a specific and growing need, proven through recent customer research feedback.

The integrated campaign will still maintain separate product identity and personality, though focusing on cross selling of the different single products as a bundled package, with the main purpose being not only sell the product or service sought by a customer, but also offer other value added features and products from other product houses and retail branches.

FNBB chief Danny Zandamela explained that, this approach meets the stated needs of FNBB customers as regards greater information regarding the products of the bank and their applicability to the needs of various clients. Furthermore, the campaign increases our client's access to our large and varying suite of products and value-adds, ensuring that we respond to client requests coming out of customer satisfaction research, thereby continue building enduring and rewarding relationships.

The campaign will be visible nationwide through a mass media roll out.