for subscribers

Mailbox: The Great Zupta, IDC con. Worthless Shiva mine now valued at R14.7bn.

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

From Biznews community member Daniel Sutherland

A brief history of the Dominion mine is that it was first owned by Aflease, and then by Uranium One.

An extensive and professional feasibility study on Dominion was published on 13 September 1996, by the then Gold and Uranium Division Geology Department of Anglo American Corporation of South Africa. It concluded decisively that despite the size of the deposit, it could not be mined economically [Noseweek issue # 198]

In November 2008, Uranium One announced that its erstwhile flagship, the Dominion mine in South Africa, was effectively closed. Uranium One wrote down mineral interests, plant and equipment to the tune of $1.8bn on Dominion, which had been attributed with a “salvage value” of $50.5m. [Noseweek issue #198]

On 14 April 2010, the Guptas used their Oakbay vehicle to acquire Dominion, apparently for the equivalent of $37m, and renamed it Shiva. Whether the Guptas paid a cent for the privilege is another question. It is evident that most if not all of the acquisition was funded by the SA Industrial Development Corporation (IDC).

When Oakbay was listed in Johannesburg in 2014, IDC loans to Oakbay amounted to R399m. Of this, R257m was capitalised interest – interest which Oakbay had not paid – and was converted into equity (shares) in Oakbay upon its listing. Yes, the Guptas had failed to pay a cent of interest – which rapidly built up to R257m. [Noseweek issue #198]

Read also: Oakbay concludes $145m Optimum Coal deal despite banking cloud

I have it on impeccable authority that Chinese investors offered $96m for the Dominion mine, but the Guptas walked away with it for $37m.

At Shiva, the problems are legion. The plant is inappropriate and needs to be reconfigured, at a cost of billions of rand.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
16.33
(-0.06)
ZAR/GBP
21.08
(-0.04)
ZAR/EUR
19.33
(-0.03)
ZAR/AUD
11.90
(-0.03)
ZAR/JPY
0.16
(-1.15)
Gold
1949.72
(+0.03)
Silver
26.74
(+0.09)
Platinum
928.80
(+0.44)
Brent Crude
43.52
(-0.32)
Palladium
2356.01
(+0.63)
All Share
54673.65
(-0.66)
Top 40
50399.16
(-0.59)
Financial 15
9841.32
(-2.14)
Industrial 25
72558.00
(-1.08)
Resource 10
55438.10
(+0.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1296 votes
It depends on how the funds are used.
73% - 8622 votes
No. We should have gotten the loan elsewhere.
16% - 1898 votes
Vote