President Zuma on Trade Visit To China

South African President Jacob Zuma, right, is seeking to boost trade on a trip to China this week. South Africa aims to tap trade and investment in "BRIC" economies Brazil, Russia, India and China.

For Beijing, the visit by Zuma will be an opportunity to consolidate ties with African countries, where China is increasingly turning for resources, markets and diplomatic support. Late last year, Chinese Premier Wen Jiabao offered Africa $10-billion in concessional loans over three years.

Many ANC officials are starting to see the fast growth of China and other BRIC economies as proof that the state should be doing more to nurture growth -- a departure from the free-market orthodoxy that has prevailed since the end of apartheid in 1994. While Zuma is in Beijing, China and South Africa are expected to sign agreements that will include cooperation on mineral resources and transport, and to address lopsided bilateral trade flows.

China is South Africa's largest trading partner, but last year South Africa ran a $2.7-billion trade deficit with China. A Comprehensive Strategic Partnership Agreement that Zuma will sign is expected to address that. This agreement is expected to deal with the trade imbalance between the two countries and with the fact that South Africa still exports raw materials to China while importing finished products into our market. (Engineering News, 8/23/2010)

Sasol's China CTL Deal: Application Review Almost Complete

Sasol expects China’s National Development and Reform Commission to conclude a review of its application to build a 90 000-bl/d coal-to-liquids (CTL) facility in that country. Sasol entered into a 50:50 venture with Shenhua Ningxia to develop the $10-billion project, which is said to be the largest foreign single project direct investment in China and also the country's largest-ever CTL fuels project. China's National Energy Administration has appointed Chinese International Engineering Consultative Company (CIECC) to arrange a panel of experts to facilitate a review of the ‘project application report.'

The CTL plant would be Sasol's first CTL investment outside South Africa, where the technology is used to produce about 40% of the country's fuel. President Jacob Zuma traveled to China on Monday for the State visit. Zuma will visit Shanghai to view the South African Pavilion at the Shanghai 2010 World Expo. The expo was opened on May 1, and will continue until October 31. (Engineering News, 8/23/2010)

Treasury Considering Carbon Tax on Coal

According to industry sources, the Treasury is considering a proposal to introduce a carbon tax at source, probably of about R100 per ton. Coal companies would be taxed on the coal they deliver to Eskom, which emits the largest amount of greenhouse gases, although Eskom itself would not pay the tax. But a carbon tax of R100-R200 a ton could cause a 1 percent decline in gross domestic product in the first six years. SA has undertaken to reduce its greenhouse gas emissions 34 percent by 2020 and 42 percent by 2025.

Eskom would face higher prices for coal, forcing it to look for more carbon-efficient ways to generate electricity or it would pass the cost on to the consumer. It would also result in less incentive for Eskom to invest in technology such as carbon capture and storage. Ultimately, demand for fossil fuel would drop.


A tax of R100 a ton could generate about R45-billion in tax revenue as the country generates about 450-million tons of greenhouse gases a year. But around R650-billion in tax revenue was collected last year, so the proposed carbon tax represents a substantial additional burden and would be inflationary. (IAAfrica, 8/3/2010)

Israel & South Africa Nuclear Weapons Alliance History

C-SPAN VIDEO

Sasha Polakow-Suransky, a senior editor at Foreign Affairs, and author of "The Unspoken Alliance," looks at the secret military partnership between Israel and apartheid South Africa following the 1967 Six-Day War (including the transfer of nuclear technology). The relationship lasted 27 years.

Commentary was provided by Avner Cohen, author of Israel and the Bomb and the forthcoming The Worst Kept Secret: Israel's Bargain with the Bomb.

This event, "Nuclear Pariahs," was hosted by the Carnegie Endowment for International Peace. Thomas Carothers moderated.

Wanted: Nominees for Scientific Advisory Committee

The Center for Disease Control and Prevention is soliciting nominees to serve on an NCEH/ATSDR Board of Scientific Counselors Advisory Committee. The deadline to submit nominations is November 30, 2010. Federal Register /Vol. 75, No. 130 /Thursday, July 8, 2010 /Notices/ 39265

For questions, contact Sandra Malcom. Please feel free to share this announcement to your colleagues.

'Wind Atlas' Announced at Clean Energy Ministerial

Energy Minister Dipuo Peters, left, used the first-ever ‘Clean Energy Ministerial' meeting, which took place in Washington DC this week, to announce that South Africa would in August release a comprehensive ‘wind atlas', as well as a ‘carbon dioxide (CO2) geological storage atlas.'

The meeting was hosted by US Energy Secretary Steven Chu and attended by delegations from 24 countries, representing 80% of global energy consumption. The atlas would identify potential sites and provide "accurate information" on the wind resources within the country - information that could be used by potential renewable-energy investors. South Africa is in the final stages of drafting an integrated resource plan for electricity, dubbed ‘IRP2010', which will provide an energy-mix road map for the next two decades.

Potential investors are still awaiting: the IRP2010; finality on the rules governing power purchase agreements; as well as the assurances that the playing fields will be levelled through the creation of a single buyer that is ring-fenced from South Africa's power utility, Eskom. Eskom is currently designated as the single buyer of power arising from independent power producers (IPPs), whether conventional, or renewable.

However, 92,8% of South Africa's power is still derived from coal, a higher percentage than most countries. Further, much of South Africa's transport fuel is also derived from coal, making the domestic economy one of the world's most carbon heavy globally. In 2009/10, Eskom alone burned some 122.7-million tons of coal and produced 224.7-million tons of CO2, while generating 232 812 GWh of electricity. (Engineering News, 7/21/2010)

DTI Promoting Investment Opportunities in China

Department of Trade and Industry Promoting SA Investment Opportunities at China Trade Expo

The Department of Trade and Industry has launched South Africa's two-month trade and investment promotion at the Shanghai World Expo 2010 in China. The intitial focus on is on minerals, metals and capital equipment. China has a need for mineral products coming from the African continent, which creates a number of synergies and possibilities of productive relationships between the two countries.

The DTI delegation included around 30 different South African executives and companies from the country's mining, metals and capital equipment sectors. The delegation is promoting investment opportunities in South Africa, identifying opportunities in China, and enhancing existing trading activities. The focus is on energy, engineering and information and communication technology. China's investment in South Africa is now expanding to new industries, such as energy, minerals, mechanics and construction. The two countries should still work together in sectors such as natural resources, capital, human resources and technology, since both countries have different advantages. The Shanghai World Expo 2010 has seen more than one-million visitors since it started in May. (Engineering News, 6/6/2010)