In choppy waters it’s all hands on deck for Carroll

ANGLO American CEO, Cynthia Carroll, has added the chairmanship of diamond producer, De Beers, to her list of responsibilities, which include the chair at the world’s largest platinum producer, Anglo American Platinum.

It’s an all-hands-on-deck attitude, seeing that most of the operations in Anglo’s miners portfolio are paddling through some choppy waters.

Anglo owns De Beers, the world’s biggest diamond producer, as well as the world’s biggest platinum producer. In August, it expected growth in global demand to slow to 3%-5% from 10% last year.

US demand, which accounts for about 45% of global diamond jewellery sales, is expected to slow this year as the country struggles with sluggish growth. The slowing Chinese demand has reduced the miner’s outlook for the world’s secondbiggest economy. Demand is fore- cast to rise 5%-10% compared with as much as 30% last year.

Luxury goods retailers such as Burberry have witnessed a slowdown in the segment. Revenue from the sale of watches and jewellery has slowed in China ahead of a once-a-decade leadership transition later this year.

That’s the diamond business. The platinum industry and Anglo American Platinum’s particular issues are well documented. Since Carroll was appointed chair of the unit, the headlines have got progressively worse.

The business remains under review, and current labour ructions must be making it even more difficult to see the wood from the trees. If she manages to turn the unit around, it will be considered one of her greatest victories. Key to the strategy was moving Chris Griffith from the success story, Kumba Iron Ore, to head the operation.

Griffithwas supposed to be leaving behind a Kumba in a secure position. However, the health of the steel and in turn iron-ore sector has deteriorated quite significantly.

BHP Billiton, the biggest miner of the metal, last month said iron ore was heading for the longest bear market in 20 years. The pace of demand for iron ore from China has slowed down by more than half, one of the mining houses executives was quoted as saying.

Since Xstrata made a bid for Anglo, Carroll has had to take on a hands-on management style — shown in the various management shakeups in recent years. Chairing De Beers and Anglo Platinum are just part of that ethos.

With clouds gathering over iron ore, one has to wonder if she does not have too much on her plate.

SO, IT’S a new CEO and an outsider to boot. That’s what some, including myself, have argued as the only way forward for the struggling grocer, Pick n Pay.

After eight months of much speculation whether or not a foreign buyer was about to sweep in and end the reign of the Ackerman family, they’ve gone for someone who’ll bring an entirely new thinking to the company.

Pick n Pay said Richard Brasher is strong on the convenience food category, a strength of its rival, Woolworths. He was also responsible for the UK giant Tesco’s entire supply base, a Shoprite strength.

He comes from a UK grocer that has seen an assault on its market share, which will prepare him for his biggest tasks domestically.

First is to defend turf in what is shaping up as a highly competitive retail environment and to find avenues to start stealing back its lost share in the South African space. Expansion into the rest of Africa, is best left for another day.

GAUTENG drivers will know how e-tolling will be implemented tomorrow, according to a statement from an interministerial committee on the province’s contentious freeway improvement project.

I read that as confirmation that e-tolling is part of the future for anyone who uses the province’s freeways. The Congress of South African Trade Unions (Cosatu) has already objected. The noise will grow louder over the coming weeks when the gantries on the highways come into operation.

But is there really any alternative to the system? Government’s purse is not overflowing at the moment, as tax receipts remain under pressure.

There is not enough money going around for the South African government to fund planned infrastructure. A full 57% of the national budget caters for social services; 10 years ago it was under 50%.

The user pay principle looks like the only way forward, which means even more strike action.

Cosatu has already said it would resist the e-tolls with all the power it has.

E-mail: derbyr@bdfm.co.za Twitter: @ronderby