African Exploration & Mining Finance Corporation
IT’S all good and well to have grand plans, but if one can’t find the money to bankroll them, the chances are slim that they’ll come to fruition. This is the position in which Sizwe Madondo of African Exploration & Mining Finance Corporation, or AEMFC for short, finds himself. Madondo announced a number of expansion plans in the state-owned mining company’s latest annual report, but he had to admit to members of parliament that raising finance proved difficult. In the current financial year, the AEMFC only managed a 2% increase in revenue, which Madondo attributed to Eskom’s cutbacks in coal off-take and the cancellation of contracts to supply coal to the Kriel power station in Mpumalanga from AEMFC’s Vlakfontein mine in the same province. Madondo told parliament a new contract with Eskom was on the cards that would enable the company to sell more coal at a higher price. In addition, the AEMFC intends to double its coal production by 2017 so as to provide the mineral to the Kusile Power Station when it comes on stream. Notwithstanding the company’s meagre profit margin and uncertainty about funds, Madondo put on a brave face for his CEO report, saying he was delighted to present the annual financial statements. “[They] clearly show a company that is on a positive growth trajectory despite the current challenges,” he burred.
LIFE OF SIZWE
Media-shy Madondo previously served as COO of the Strategic Fuel Fund. Talks that the AEMFC would soon be transferred to the Department of Mineral Resources seemed to have died down and for the time being South Africa’s state-owned mining company still resorts under the Central Energy Fund.
- Web Address: www.cef.org.za