Archive | Africa Mining

Acacia Mining says Barrick Gold offer doesn’t fairly value mining company – by Niall McGee (Globe and Mail – June 25, 2019)

https://www.theglobeandmail.com/

Acacia Mining PLC says Barrick Gold Corp.’s takeover proposal undervalues the company, prompting Acacia to push its biggest shareholder to table a “fair” bid.

Last month, Toronto-based Barrick said it was willing to acquire the 36.1 per cent of London-based Acacia that it doesn’t already own for US$285-million in stock. At the time, the proposal was worth roughly 9 per cent less than Acacia’s market value.

Barrick chief executive Mark Bristow told The Globe and Mail that the discounted proposal was justified because of the inherent risk Acacia presents: It operates three gold mines in Tanzania and is currently subject to a gold concentrate export ban in the East African country. Continue Reading →

Glencore Cuts Out Agents and Dealmakers as Scrutiny Grows – by Jack Farchy and Thomas Biesheuvel (Bloomberg News – June 25, 2019)

https://finance.yahoo.com/

(Bloomberg) — Glencore Plc is cutting out many of its intermediaries — the agents and dealmakers once essential to cracking the toughest markets — amid growing scrutiny of its operations around the world.

Under pressure from its compliance division, Glencore is dismantling much of its global network of trading agents, according to people familiar with the situation. To continue operating, the company is setting up teams in some countries, said the people, asking not to be named as the matter is private. In other places, Glencore is still using agents who pass strict compliance tests and have a clear role.

Glencore has long relied on intermediaries, who work on commission. The agents network with well-connected business and government officials in developing nations with the goal of securing commodity-trading deals. In a prospectus in 2003, for example, Glencore listed 64 field offices around the world, saying that included nine agents in eight countries “which act primarily for us.” Continue Reading →

Mineweb: Anglo’s seen the future of mining, and it looks a lot like farming – by Ciaran Ryan (Money Web.com – June 24, 2019)

https://www.moneyweb.co.za/

The sector has to clean up its act while still making a profit – and it’s a race the group intends to win.

Addressing analysts in London recently, Anglo technical director Tony O’Neill outlined a vision of the future where mines will be similar to farms.

Virtually all mining activity, including the extraction of minerals, leaching and processing will take place below ground. Rock cutting will be done without vibration and only material of value will be brought to the surface. No more convoys of trucks or surface conveyor belts delivering material to the processing plant, no more mechanical shovels scarring the countryside.

On the surface, you may see green fields, cows, and perhaps a wind turbine or two and some solar panels. Surplus power generated by the mines will be supplied to local communities. Exploration will be done by satellite and minimal use made of water. Perhaps even no water at all. Continue Reading →

Mineweb: Anglo American through the ages – by Ciaran Ryan (Money Web.com – June 13, 2019)

https://www.moneyweb.co.za/

It launched South Africa’s industrial age to support its mining activities, but since 2012 has halved the number of its assets. Where to now?

When the EFF’s Julius Malema talks of white minority capital, he is referring of course to Johann Rupert and the Oppenheimers for the most part. These are the families that helped build South Africa and, for better or worse, guided its political discourse in a direction favourable to their business interests.

Anglo American founder Ernest Oppenheimer would be hard put to recognise the group he founded in 1917. By the 1980s it accounted for a staggering 25% of SA’s GDP and owned an estimated 60% of the JSE – the result of an international embargo that forced SA companies to reinvest profits locally, turning the JSE into an incestuous and distended bubble.

The group that built its castle on diamonds and gold in southern Africa is now a very different animal. Since 2012, it has halved its number of assets, but now delivers 30% more product from each retained asset. Continue Reading →

Plummeting cobalt price takes toll on Democratic Republic of Congo – by Henry Sanderson (Financial Times – June 23, 2019)

https://www.ft.com/

Lubumbashi: The price of cobalt — a key metal in electric cars — has plummeted 65 per cent over the past year, putting a strain on the economy of the world’s largest producer, the Democratic Republic of Congo.

Economic growth in the DRC, one of the world’s poorest countries, is likely to fall to 4.3 per cent this year from 5.8 per cent in 2018 — in part due to lower cobalt prices, according to the International Monetary Fund.

The DRC produces more than 60 per cent of the world’s supply of cobalt, a metal that is used in lithium-ion batteries for smartphones and electric cars. Last year the country’s former president Joseph Kabila declared the metal “strategic” and launched new regulations that require miners to pay 10 per cent of their revenues on sales of the metal to the state. Continue Reading →

Acacia Mining says Barrick offer undervalues the company – by Noor Zainab Hussain and Nichola Saminather (Reuters U.S. – June 24, 2019)

https://www.reuters.com/

(Reuters) – Acacia Mining on Monday strongly disagreed with majority shareholder Barrick Gold Corp’s valuation of the company, saying Barrick’s proposal undervalued its life of mine plans and appears to have ignored the value of its exploration and development assets.

However a fair value buyout offer from the world’s No. 2 gold miner would be attractive, it added.

Barrick’s proposal to take full control of its African unit to resolve a long-standing tax dispute with Tanzania has drawn the ire of Acacia’s minority shareholders, who may have the ultimate vote on a deal. Continue Reading →

Opinion: Russia-Africa Economic Partnership Under The Spotlight – by Kester Kenn Klomegah (Eurasia Review – June 24, 2019)

Eurasia Review

Squeezed between European and American sanctions, Russia has stepped up efforts to elevate its existing relationship, mostly focusing on trade, investment and economic cooperation with several African countries, to include areas spanning the financial sector, energy, the mining industry, railway infrastructure, digital technologies, cybersecurity, healthcare, education, and food security.

The latest additional step taken in propelling partnership efforts was an open Economic Conference held within the Afreximbank Annual Meetings (AAM2019) from June 20-21 in Moscow.

Afreximbank, the African Export-Import Bank, is a supranational financial institution bringing together 51 African countries. The bank aims to expand and incentivize trade between African countries and others outside the continent. Russia became one of the bank’s shareholders in 2017. Continue Reading →

UPDATE 2-Zambian court rejects Vedanta bid to join liquidation case – by Chris Mfula (Reuters U.S. – June 20, 2019)

https://uk.reuters.com/

LUSAKA, June 20 (Reuters) – Vedanta Resources said it would take urgent steps to protect its Zambian assets and pursue international arbitration if necessary after a Lusaka court on Thursday rejected its request to be included in liquidation proceedings.

A Lusaka judge on Thursday ruled Vedanta Resources could not take part in proceedings to wind up its Konkola Copper Mines (KCM) business in Zambia, but granted Vedanta leave to appeal the ruling. The company said it would consider whether to do so.

The case has intensified concerns among international miners about resource nationalism in Africa. Zambian firm ZCCM-IH holds around 20 percent of KCM, while Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, holds a majority stake. Continue Reading →

The Biggest Winner From a Rise in Precious Metals – by Adelaide Changole (Bloomberg News – June 19, 2019)

https://www.bloomberg.com/

The world’s best-performing precious-metals stock is up almost 90% this year, and there are signs the rally could run even further.

Impala Platinum Holdings Ltd. has outpaced 87 global peers with a market value of at least $1 billion in 2019, data compiled by Bloomberg show. The South African miner has benefited from surging palladium and rhodium prices, along with any weakness in the local currency, which bolsters its income from sales of dollar-based metals.

“The rally in palladium has been a big contributor,” coupled with a weaker rand, said Henre Herselman, a derivatives trader at Johannesburg-based Anchor Private Clients. Palladium, up 60% since August, makes a 30% contribution to Impala’s earnings, he said. The rand has dropped 5.4% against the dollar in 12 months. Continue Reading →

Reporters investigated abuse and corruption at a Barrick gold mine in Tanzania. They faced threats and censorship – by Marion Guégan and Cécile Schilis-Gallego (Toronto Star – June 19, 2019)

https://www.thestar.com/

In Tanzania, reporters trying to investigate violence, environmental damage and other wrongdoing connected to a gold mine in the north of the country are trapped between the silence of a mining giant and the lies of a repressive government.

At least a dozen reporters — local and international — who wrote about the mine have been censored or threatened. Forbidden Stories, an international consortium of 40 journalists publishing in 30 media organizations around the world, unveiled the shameful history of gold leaving the North Mara gold mine to end up in coveted high tech phones and computers.

This is part of the “Green Blood” series, a project pursuing stories of journalists who have been threatened, jailed or killed while investigating environmental issues.

“Truly innovative products leave their mark on the world instead of the planet,” Apple proudly claims on its website. “We are building a better world for future generations,” says Canon’s CEO. Nokia’s “technology improves lives.” Continue Reading →

Barrick Offers More Talk But Not More Shares for Acacia Stake – by Danielle Bochove and Elena Mazneva (Bloomberg/Yahoo Finance – June 18, 2019)

https://finance.yahoo.com/

(Bloomberg) — Barrick Gold Corp.’s CEO has no intention of raising his offer to buy out the rest of troubled African unit Acacia Mining Plc — but he will use the next three weeks to talk.

Barrick said on Tuesday it received a three-week extension to make a formal offer to minority shareholders for the roughly 36% stake in Acacia it doesn’t already own. In a separate statement, Acacia said it’s open to a formal offer, provided the price is fair and its shareholders support the transaction.

“My job is to sit down in the next few weeks and work through it with the minority shareholders,” Barrick Chief Executive Officer Mark Bristow said by phone Tuesday. Asked if those talks will include an offer for a higher indicative price, he was unequivocal. “No, we’re not,” he said. “We’re not. We would have done that already.” Continue Reading →

Don’t Be in a Rush to Do Business in World’s Top Cobalt Producer – by Pauline Bax and William Clowes (Bloomberg News – June 18, 2019)

https://www.bloomberg.com/

When a foreign investor with multimillion-dollar projects across Africa was told the president of the Democratic Republic of Congo wanted to see him, he booked a suite at one of the country’s top hotels. After six days of waiting, he left.

Since Felix Tshisekedi took the helm of the world’s biggest cobalt producer almost five months ago, private planes jam the main airport in Kinshasa, the capital, and hotel lobbies teem with businessmen and Congolese who’ve returned from countries such as the U.S. and South Africa with hopes of working with his administration.

But it’s been slow going. Tshisekedi only appointed a prime minister last month and hasn’t yet named a cabinet. Continue Reading →

Blackwater founder expands operations in Congo – by Aaron Ross (Reuters U.S. – June 13, 2019)

https://www.reuters.com/

DAKAR, June 13 (Reuters) – A company run by private security firm Blackwater’s founder Erik Prince has registered a subsidiary in Democratic Republic of Congo with a mandate to extract minerals and timber and conduct financial operations, corporate filings show.

Prince, who renamed Blackwater and sold it in 2010 after several of its employees were indicted on unlawful killing charges in connection with their work as U.S. government contractors during the Iraq War, has run Hong Kong-based Frontier Services Group (FSG) since 2014.

FSG has close ties to the state-owned Chinese investment company CITIC and provides security, aviation and logistics services to Chinese firms operating in Africa. Continue Reading →

Biggest Union Kicks Off Platinum Talks With 48% Wage Demand – by Paul Burkhardt (Bloomberg News – June 14, 2019)

https://ca.finance.yahoo.com/

(Bloomberg) — The biggest union in South Africa’s platinum industry demanded wage increases of as much as 48% from producers in the world’s top supplier of the metal, setting the stage for a tough fight in upcoming pay talks.

The Association of Mineworkers and Construction Union wants minimum basic pay of 17,000 rand ($1,146) a month, President Joseph Mathunjwa said Friday. That compares with about 11,500 rand currently earned by the lowest-paid workers.

Key Insights

The opening salvo — issued to companies including Anglo American Platinum Ltd., Sibanye Gold Ltd., and Impala Platinum Holdings Ltd. — represents a substantial step up from the labor group’s years-long rallying cry for “a living wage” of at least 12,500 rand a month. Continue Reading →

The mining grinches are right: SA needs a new broom for endemic dysfunction – by David McKay (MiningMX.com – June 13, 2019)

MiningMX.com

SOUTH African mines minister, Gwede Mantashe’s, compromise on energy in which he hopes to align the aspirations of the green lobby with miners, seems a sensible approach. The country doesn’t have a coal mining problem, it has an energy problem so the debate around solving it needs to be appropriately universal in character.

The middle way is not, however, working out quite as well in the mining sector. Without doubt, Mining Charter III is an advance on previous versions, but it falls short in critical areas which have been taken to court by the Minerals Council, as is well documented.

Mantashe has emerged as a bit of a unifying voice in the Ramaphosa Administration. But the investment sector will be less sympathetic. Similarly, the advance Mining Charter III makes in respect of junior mining is tinged with disappointment, as the Minerals Council points out. Continue Reading →