EIA for the proposed 400 MW Pebble Bed Modular Reactor Demonstration Plant (PBMR DPP)

As part of the EIA process for the proposed 400MW Pebble Bed Modular Reactor Demonstration Power Plant (PBMR DPP) the public is hereby notified of the availability of the revised Social Impact Assesment (SIA) Specialist Report and Final environmental impact Report for review.

Approvals for new private sector projects continue to fall

The number of square metres approved for private sector building projects fell by 25% y/y based on a 12 month moving average, with a stronger 29% drop in residential and a 13,6% drop in non-residential project approvals. The decline in approvals for new building construction accelerated to and dropped by  28,4% y/y while approvals for renovations also accelerated but at a slighter weaker annual rate of decline of 18%.  The outlook for private sector construction therefore remains bleak, despite considerable monetary policy easing in recent months.

All of the nine provinces reported negative growth in the number of square metres approved for private sector projects. Over the last 12 months square meters approved fell by over 6 million, mostly affecting Gauteng and Western Cape.  Approvals in Gauteng were down 32% (or over 3 million square metres) over the last 12 months, and down 35% or 1,8 million square meters in the Western Cape.  Kwazulu Natal only recently started reporting negative growth, and was lower 15% in the 12 months to April 2009. North West Province and the Free State are the only two provinces that reported single digit declines - all the other provinces are experiencing double digit declines.

Steel price increase expected in July 2009

Steel prices are expected to increase by between 4% and 6% in July 2009, following an announcement by ArcelorMittal, that it would increase the price of its long and flat steel products.  Flat-steel prices will increase by between 4% and 5% and long-steel prices by between 5% and 6%.  Local prices are set by a basket of domestic prices in four countries, namely China, Russia, the US and Germany - and adjusting the outcome to exchange rate variations.

The July increase is based on the expectation that the South African currency will not strengthen beyond current levels and that the price of steel in the countries mentioned will show some upward movement. According to ArcelorMittal, clients have already been informed of the pending increase.  The steel industry is currently under investigation, accused of price fixing.

Economic Monitor May 2009: No turnaround in sight

Economic conditions during May 2009 remained depressed, despite 4,5 basis point cuts in the prime lending rate. Governor of the Reserve Bank has now turned his attention to financial sector saying that there is no need to set the prime lending rate at 3,5 basis points above the repo rate. This debate will continue for some time, but the fact of the matter is that lending rates have been lowered aggressively in view of weak economic performance and an improved inflationary outlook. However, inflation continued to perform above the 6% target level, coming in at 8,4% in April 2009. Demand side of the economy, in terms of retail sales, motor vehicles, house price growth and plans approved for new private sector construction, all continued to perform badly, while the supply side (manufacturing and the purchasing manager's indices) also deteriorated. The economy does not react speedily to changes in momentary policy and given the current global situation, the recovery may be slower compared to previous slumps.  GDP growth fell by 6,4% in the 1^st quarter of 2009, much worse than expected, as nearly all economic sectors reported a decline. The construction sector, supported by government and parastatal expenditure, slowed to an annual growth of 9,4%.  Business confidence fell to its lowest level in 7 years to an index value of 81,9 in April 2009.

Economic Monitor May 2009 available to subscribing clients.