Africa Mining – Page 175 – Republic of Mining

Tanzania: Fipa – the Myth of Reciprocity – by Paula Butler and Evans Rubara (All Africa.com – August 8, 2013)

August 9, 2013

The new investment code between Tanzania and Canada raises questions as to whose interests the Tanzanian state really serves, why, and to whom the Tanzanian state is accountable. Such a far-reaching investment regime has been adopted with minimal public awareness and debate among Tanzanian citizens. Hypocritical! This may be the most accurate word to characterize the recent Foreign Investment Protection Agreement (FIPA) between the United Republic of Tanzania and Canada.

Since the infamous demise of the proposed Multilateral Agreement on Investment (MAI) in 1999, Canada has been quietly using bilateral trade agreements to introduce the very investment terms that were then opposed by a groundswell of Global South countries and informed citizens. The most recent of these is an investment agreement with Tanzania.

WHAT TRANSPARENCY?

While Canadian government officials pose as champions of transparency in the realm of global governance, and have touted their support for the Extractive Industries Transparency Initiative (EITI) in Tanzania, this Agreement has had minimal public visibility.

South African gold output continues its decline – where will it end? – by Lawrence Williams (Mineweb.com – August 9, 2013)

August 9, 2013

http://www.mineweb.com/

Statistics South Africa has just released its latest figures on the country’s metals and mineral output and they don’t make for happy reading with gold and platinum still on the decline.

LONDON (MINEWEB) – For South Africa, the latest figures from the country’s government statistical department, make fairly dismal reading, particularly with respect to its once word-dominant gold mining sector. The June figures, released yesterday, showed .that gold production continues to fall year on year – it was down 14% on that for June 2012 – and is now only the country’s fourth most important mined metal by value, having been overtaken by iron ore. Coal remains the most important metal or mineral by sales value, with platinum second, but the latter too is showing a year on year production decline.

According to the report the country’s overall mining production decreased by 6.2% year-on-year in June 2013. The largest negative growth rates were recorded by ‘other’ metallic minerals (-38.0%), diamonds (-22.9%), PGMs (-18.9%) and gold (-14.1%). The main contributors though to the overall 6.2% decrease were platinum group metals (contributing -4.6 percentage points) and gold (contributing -2.3 percentage points). Iron ore (contributing +2.0 percentage points) was the most significant positive contributor.

In value terms, the latest figures released are from May when overall mineral sales decreased by 8.5% year-on-year. The largest negative growth rates were recorded for gold (-42.6%), nickel (-20.0%) and ‘other’ metallic minerals (-15.5%). The major contributor to the 8.5% overall decrease was gold (contributing -10.0 percentage points).

Africa’s potash pioneers hope to thrive even if price drops – by Clara Ferreira-Marques and Aaron Maasho (Reuters U.K. – August 7, 2013)

August 8, 2013

http://uk.reuters.com/

LONDON/ADDIS ABABA, Aug 7 (Reuters) – Africa’s nascent potash industry, often enjoying low costs and shallow deposits while standing to benefit from fast growth in local demand, expects to withstand an expected drop in the crop nutrient’s prices better than emerging rivals.

The collapse last week of one of two global potash cartels is expected to take about 25 percent off prices, prompting questions over the future of projects such as BHP Billiton’s $14 billion Jansen and the K+S Legacy mine – both in Canada. Shares of small explorers and miners have been battered and financing, already tough, has become tougher.

But companies exploring Africa’s emerging potash regions – the Republic of Congo to the west and Ethopia and Eritrea to the east – say a price drop could benefit those with lower costs and high ore grades, if it means output cuts in established mining regions.

Lower prices could also increase demand for potash in emerging markets and notably in Africa, where food consumption patterns are changing as population growth and increased urbanisation alter diets and boost demand for grain.

Zimbabwe to Seize Mines While Compensating Banks – by Franz Wild (Bloomberg News – August 6, 2013)

August 6, 2013

http://www.bloomberg.com/

President Robert Mugabe’s government plans to seize control of foreign-owned mines without paying for them as part of a program to accumulate $7 billion of assets following his July 31 election victory, a minister said.

The government will compensate bank owners as it takes control of their companies, Saviour Kasukuwere, the minister in charge of the program to compel foreign companies to cede 51 percent of their assets to black investors or the government, said in an interview in Harare, the capital, today. His comments echo a suggestion made by Mugabe earlier this year.

“When it comes to natural resources, Zimbabwe will not pay for her resources,” Kasukuwere said. “If they don’t want to follow the law that’s their problem.” Non-compliant mine owners risk losing their licenses, he said.

Anglo American Platinum Ltd. (AMS), Impala Platinum Holdings Ltd. (IMP), Barclays Plc (BARC) and Standard Chartered Plc (STAN) are among companies that operate in the country. Other industries may have to yield smaller stakes to black owners, Kasukuwere said. Metals and minerals, including platinum and gold, accounted for 71 percent, or $719.9 million, in exports in the first four months of this year, the state-controlled Herald newspaper said, citing the finance ministry.

Tanzania: Kabanga Nickel Project – Light At the End of Long Tunnel – by Meddy Mulisa (All Africa.com – August 2, 2013)

August 2, 2013

http://allafrica.com/

Bukoba — THE much-awaited Kabanga Nickel Project will soon start its operations, bringing fresh hopes to many in terms of labour and employment, according to President Jakaya Kikwete during his recent tour of Kagera Region.

Kabanga Nickel is an active mine exploration project 130 kms south west of Lake Victoria in Ngara District, Kagera Region. The project is a joint venture between Barrick Gold and Xstrata Nickel.

The Minister for Energy and Minerals, Prof Sospeter Muhongo said the government would buy shares which would later be sold to wananchi. He also appealed to Tanzanians to grab the opportunity for their wellbeing. He said a total of 80 megawatts would be produced at Rusumo Falls to generate power at Kabanga Nickel.

“This is a joint project between three countries -Tanzania, Burundi and Rwanda with each country taking 27 megawatts. Kabanga’s 58 million tonne nickel resource is regarded as one of the best undeveloped greenfield nickel sulphide deposits in the world. Since 2005, there has been continued progress made in the development of the Kabanga Nickel Project with a significant investment to date of over US$205 million in drilling and evaluation studies.

Barrick looks to cut high-cost mines – by Tim Kiladze (Globe and Mail – August 2, 2013)

August 2, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

After its second major writedown in just six months, Barrick Gold Corp. is trying to wooing back shaken investors by focusing on assets closer to home.

The world’s largest gold miner announced a hefty $8.7-billion (U.S.) after-tax impairment charge, leaving the company with a second-quarter loss of $8.6-billion.

Barrick also slashed its dividend by 75 per cent as part of its second quarter earnings. In response to the losses, the Toronto-based company plans to shed, suspend or shut high-cost mines and continue to cut costs.

Chief executive officer Jamie Sokalsky said he is considering changes to his lineup of high-cost mines, most of which are in Africa and Australia. On a conference call Thursday, he said is already “well-advanced in a process to sell certain Australian assets.”

The miner will also continue to slash expenses where possible, having already cut or deferred $4-billion in capital spending over the past year, half of which came in the first six months of 2013.

Gold’s slide takes $2.4-billion toll on Kinross – by Tim Kiladze (Globe and Mail – August 1, 2013)

August 1, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Kinross Gold Corp. announced a $2.4-billion impairment charge because of lower gold price assumptions and a previously announced loss on an Ecuadorian project that the miner abandoned a few months ago. The latest charge brings the company’s writedowns to $8-billion over the past year and a half, exceeding Kinross’s market capitalization of about $6.1-billion.

The company cancelled its next semi-annual dividend payment, and raised the possibility that it would scrap the dividend altogether, depending on factors such as market conditions and its balance sheet strength.

Kinross also said Wednesday that it would delay a decision on whether to proceed with the construction of a new mill that processes the ore it mines at its Tasiast project in West Africa. That decision follows a commitment made just three months ago to proceed with the next phase of its expansion.

Kinross’s woes are emblematic of a struggling industry hampered by a slew of multibillion-dollar writedowns, cost cuts and share price slumps. Kinross shares are now worth just $5.34 apiece, down 78 per cent from their post-crisis peak, while Barrick Gold Corp.’s have fallen to $17 each – a low that was, until very recently, last seen in 1992.

UPDATE 2-African Barrick eyes more cost cuts as impairment hits H1 – by Clara Ferreira-Marques and Sarah Young (Reuters India – July 30, 2013)

August 1, 2013

http://in.reuters.com/

LONDON, July 30 (Reuters) – Miner African Barrick Gold , battling a plunge in the price of bullion, identified more cost cuts to help engineer a turnaround after sinking to a first-half loss on the back of a $727 million impairment charge.

African Barrick was under pressure even before a gold price rout began in April, hit by illegal mining, power generation problems and strikes, issues which forced it to warn in February that output would shrink for a fifth straight year.

The company on Tuesday posted a first half net loss of $701.2 million, against a profit for the year-ago period of $73.7 million, after a lower gold price and a review of its lower grade mines forced it to take the $727 million charge.

On a quarterly-basis, however, it beat consensus on a production and cost basis, helped by actions taken as part of a review.

The review identified $185 million of potential savings, with over $100 million of cuts seen in 2013. Initially prompted by a failed takeover attempt earlier this year, the process was given fresh impetus by a fall in the price of gold.

Tanzanians sue African gold mining firms over deaths in 2011 – by John Vidal (The Guardian – July 31, 2013)

August 1, 2013

http://www.theguardian.com/uk

Villagers accuse African Barrick Gold and North Mara Gold Mine over killing of at least six people

Tanzanian villagers are suing two African gold mining companies after six people were killed by police and others injured.

On Monday, Leigh Day, the London law firm, served a claim on behalf of 12 villagers against African Barrick Gold (ABG), one of Africa’s largest mining companies, and North Mara Gold Mine (NMGM), to highlight the allegedly serious human rights situation at the mine.

The claim alleges that the companies are liable for the deaths and injuries of villagers, including the killing of at least six men by police.

According to Leigh Day, villagers often try to gather rocks in the vicinity of the mine in the hope of finding small amounts of gold. “Police, which are an integral part of the mine’s security, allegedly shoot at the villagers using tear gas and live ammunition,” said Richard Meeran, a partner at the law firm.

The claims relate to several incidents, including one in which five men were shot dead in May 2011. The villagers allege the mine and NMGM, which are operated by African Barrick Gold, “failed to curb the use of excessive force at the mine, including deadly force used by police on a regular basis over a protracted period of time”.

NUM: Violence in [South African] platinum belt continues unabated- by Greg Nicolson and Thapelo Lekgowa (Daily Maverick – July 30, 2013)

July 31, 2013

http://www.dailymaverick.co.za/

National Union of Mineworkers (NUM) general secretary Frans Baleni expressed shock at the ongoing violence in the platinum belt and appealed to all signatories to Deputy President Kgalema Motlanthe’s Framework Agreement for a Sustainable Mining Industry to meet their commitments to ensure a stable mining industry. The union’s national executive committee (NEC) said violence and intimidation continues almost a month after mining stakeholders signed the agreement, making a “mockery” of the initiative.

“The NUM is of the view that the deputy president must urgently act in operationalising that framework as agreed by the parties,” said Baleni, speaking in the union’s offices. “We are making a call that this framework has not been operationalised. Besides that, being operationalised, crime continues to be committed in terms of intimidation [and] violence.” He said there are 14 murder cases where no suspect has been arrested and in cases where arrests have been made prosecutions are yet to begin. The NUM called on the justice department to shift cases from Rustenburg’s courts to other courts so mine-related cases can be fast-tracked.

Baleni refused to name those responsible, but the NEC statement clearly points to the Association of Mineworkers and Construction Union (AMCU). The NUM claims that of 42 suspects arrested for violence or intimidation, 78% of them are from Amcu.

Zimbabwe: Mining Sector Has Potential to Turn Around Economy – (All Africa.com Editorial – February 1, 2013)

July 31, 2013

http://allafrica.com/

Zimbabwe is rich in natural resources and produces more than 40 types of metals and minerals. Mineral exports account for close to 40 percent of the country’s export receipts, accounting for massive employment and 12 percent of the gross domestic product.

Gold belts run along sources of nickel, asbestos, iron ore and pyrites production and contain reserves of antimony, tungsten, corundum and limestone. Zimbabwe is the world’s third largest source of platinum group metals and significant reserves of nickel are found along the Great Dyke.

Coal is one of Zimbabwe’s primary energy sources. High quality coal deposits abound in Hwange, parts of Matabeleland North, the Zambezi Valley and in the south east.

The Makonde basin in the north west of Zimbabwe, contains the country’s copper and graphite mines as well as reserves of lead, zinc and silver.

Diamonds have also entered the scene amid high expectations for the economy’s turnaround on the back of strengthening global demand for the precious gems.

The tycoon, the dictator’s wife and the $2.5bn Guinea mining deal – by Ian Cobain and Afua Hirsch (The Guardian – July 30, 2013)

July 30, 2013

http://www.theguardian.com/uk

FBI investigating Beny Steinmetz’s company BSGR after lucrative deal to extract iron ore from Simandou mountain range

Conakry, Guinea – In Conakry, a gleaming hotel looms over the filth of the city. Behind it a small coastal cove acts like a floating rubbish dump, collecting brightly coloured detritus from the murky Atlantic and distributing it in piles in stubbly black rock pools on the beach. A group of gangly young men sit by an abandoned fishing boat, looking despondently out to sea.

But in the gleaming, chandelier-lit hotel lobby it is easy to forget the scenery outside. Here, European, Australian and Brazilian mining executives, in jeans and suit jackets, sip rosé as they check emails. African businessmen huddle in groups, discussing shareholdings and the possibility of chartering planes to reach remote sites.

Businessmen think nothing of hiring private aircraft to reach Guinea’s abundant reserves of diamonds, gold, uranium, aluminium ore and bauxite, because the returns are unparalleled. The country is an almost textbook example of what some refer to as the “paradox of plenty”: it sits atop some of the most significant untapped mineral reserves in the world while its people live in squalor, without clean water, electricity, education or infrastructure.

Fostering awareness of the origins of minerals – by Terry Pender (Waterloo Record – July 29, 2013)

July 30, 2013

http://www.therecord.com/waterlooregion/

WATERLOO REGION — Kirsten Van Houten is helping people make the links between their smartphones and the brutal war ravaging the Democratic Republic of the Congo.

Van Houten is collecting signatures in support of the Just Minerals Campaign — a national effort to raise awareness of minerals that are mined in Africa and used in cellphones and computers. So far, she has collected more than 100 signatures.

The minerals are tin, tungsten, tantalum and gold. Van Houten and the Just Minerals Campaign are concerned about the supply chains for tech companies that start in Sudan, Uganda, Rwanda, Burundi, Tanzania and the Congo.

The Just Minerals Campaign is in support of New Democratic MP Paul Dewar’s private member’s bill called the Conflict Minerals Act. It is modelled on U.S. legislation that will require all companies to publicly report on the source of minerals used their products.

“We would like to indicate there is support in this community,” Van Houten said. “We would also like to create consumer awareness and create demand for a fair trade cellphone.” The young woman wrote her master’s thesis on the demand for small guns and light weapons in the Congo.

Mugabe wants mining indigenisation without compensation – by Tawanda Karombo (South Africa Business Day – July 29, 2013)

July 29, 2013

http://www.bdlive.co.za/

HARARE — Indications that Zimbabwe’s contentious indigenisation policy will be changed to rule out compensation for expropriated stakes in mining companies have been buttressed by President Robert Mugabe during a campaign rally in the capital ahead of the country’s elections on Wednesday.

The empowerment policy, first promulgated in 2007 and forcibly implemented in the past two years, seeks to transfer majority control in foreign mining groups to black Zimbabwean groups.

However, where foreign mining companies would have received compensation for the 51% shares ceded to black Zimbabwean groups, they will now receive no monetary compensation, Mr Mugabe has said.

Impala Platinum, Anglo American Platinum and Aquarius Platinum are the major mining houses in the industry in Zimbabwe, which is home to the world’s second-largest platinum reserves. The country also has vast deposits of other minerals such as gold, nickel, diamonds and coal, which are being exploited by foreign companies that include New Dawn Mining, Mzi Khumalo’s Metallon Gold and Caledonia Mining Corporation.

SA seventh-largest iron-ore producer – by Yolandi Booyens (MiningWeekly.com – July 26, 2013)

July 26, 2013

http://www.miningweekly.com/page/americas-home

South Africa’s position as the number three supplier of iron-ore to China emphasises the strategic importance of iron-ore deposits in the country and its importance as a significant iron-ore contributor worldwide, says minerals adviser Venmyn Deloitte MD Andy Clay.

He adds that this is testimony to the rapid historical development of South Africa’s iron-ore mines, in conjunction with the South African government’s infrastructure development.

South Africa is the seventh-largest producer of iron-ore and has also traditionally been the fourth-largest exporter worldwide. The country increased the percentage of iron it exports because of the suspension of mine operations in Goa, India, in September 2012 , owing to contraventions in terms of mining without licences or beyond licensed areas.

As a result, the global demand that Goa’s iron-ore mining operations used to meet can now be met by South Africa, in addition to other producers, such as Australia. “One of the factors that enables South Africa to export so much ore is the efficient Sishen iron-ore rail line,” notes Clay.

Opened in 1947, the Sishen mine is iron-ore supplier Kumba’s flagship operation and one of the largest openpit mines in the world. It has sufficient resources to sustain 21 years of production. It operates 24/7 and, in 2011, it transported 38.9-million tons of iron-ore.