Steel price increases return! Earlier this week various mills sent out steel price increase notices in the region of 5% to the sector, again adding further pressure to downstream industries. Constant challenges are being faced as prices continue to rise and the supply of steel is almost non-existent. It seems that the hope of the industry normalizing mid-year has a grey cloud over its head now.
A shock fuel price hike is also in place for the new month adding higher costs to logistics which in turn has negative effects down the line.
Another industry that is facing constant challenges is the plastic sector, Force Majeures implemented by Sasol in South Africa and other producers in America and Europe has resulted in massive increases in the range of 15% month on month is having a damaging effect, affecting prices on mining hose, PVC & HDPE pipes as well as rubber products.
The fuel price hike will also affect the plastic base price.
Border updates, Officials in Zambia stay silent as the Kazangula bridge lays dormant, rumours and guesswork that’s what fills the void of government sector officials who are not forthcoming with trustworthy information about the new bridge at the Kazungula border post between Zambia and Botswana.
Cross border operators carrying freight across the region are forced to use the pontoons which can only handle around 50 – 60 trucks a day whilst the beautiful Kazangula bridge is expected to handle at least 150 trucks a day. However, in all its glory, the bridge remains closed in the backdrop.
Rumour has it amongst transporters that the only reason the bridge remains closed is because money is still owed to the contractors by the Zambian government.
China’s Tsingshan to build mine and steel plant, China’s Tsingshan Holding Group is set to start developing an iron ore mine and a carbon steel plant in Zimbabwe from May, three years after the firm first announced the investment deal.
Tsingshan signed a $1-billion outline agreement with Zimbabwe in June 2018 to build a two-million-tonne-a-year steel plant and has been carrying out exploration and seeking more mineral concessions.
The Chinese company, through its Zimbabwean subsidiary Afrochine, already produces ferrochrome, which will also be used in the production of steel.
China has over the past few years emerged as a major foreign investor in Zimbabwe, with its firms mostly involved in mining of gold, chrome and diamonds and building power stations.
Zimbabwe has previously announced that it has a drive to increase mining revenue to $12Billion by 2023, last year, minerals earned the country $2.4-billion in exports.
Chimona mining invests in Bubi, Midlands based Chimona Mining Company has spread its wings to Bubi District in Matabeleland North where it has acquired new gold mining rights and will be setting up a processing centre under a US$500 000 investment.
The venture is expected to create more job opportunities in Matabeleland North and promote the formalisation of artisanal mining activities in Bubi, which is one of the richest gold districts in the country.
ZCCM on lookout for investors, Zambia’s state mining company is on the lookout for further deals as it prepares to complete its acquisition of a majority stake in Glencore’s struggling copper business in the country.
ZCCM Investment Holdings is considering any opportunities to increase the minority shareholdings that it owns in Zambia based companies.
ZCCM became an investment company in 2000 when Lusaka privatised the country’s mining industry, selling off controlling stakes in its prized copper mines to large mining groups. That process created Mopani Copper Mines, the business ZCCM is buying from Glencore, and Konkola Copper Mines (KCM), which is owned by Vedanta Resources.
Last year, ZCCM announced a change in strategy and said it would focus on mining and energy with the ambition of operating assets rather than just being a minority shareholder.
Ivanhoe completes phase one at Kakula, Ivanhoe Mines has completed 80% of phase one work at the Kakula copper mine in the Democratic Republic of Congo with first production targeted for July.
Ivanhoe is commissioning the concentrator plant at the Kamoa-Kakula operation, and has stockpiles already totalling over 2.16 million tonnes which contains an estimated 95,000 tonnes of copper.
The second phase expansion is set to begin during the third quarter of 2022. This phase is expected to double the mill throughput to 7.6 million tonnes a year. Phases 1 and 2 combined are forecast to produce up to 400,000 tonnes of copper a year.
Other engineering and construction activities underway at Kamoa-Kakula include the completion of upgrades at the Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure to supply the mine with clean, renewable hydropower. The Mwadingusha hydropower plant is expected to deliver approximately 78 megawatts of power to the national electrical grid ahead of the start-up of the Kakula concentrator.
US to train Moz fighters, American military personnel will be spending two months in Mozambique, training the local soldiers in an aid to fight the jihadist insurgents.
The ISS has been in the gas rich Cabo Delgado province since 2017 and over the years have been growing in numbers and becoming more brazen with their attacks.
Earlier this week, the insurgents attacked children as young as 11 years old, beheading them with their violent attack. The violent attacks to date have claimed more than 2600 lives and has displaced over 670,000 people.
Few countries such as the UK, US, Tanzania, Zimbabwe and South Africa have voiced their concern and support for Mozambique but unfortunately it seems that its all just talk as the country continues to be battered by the Islamist group.
“A single stick may smoke, but it will not burn”
Zimbabwe had announced on Sunday, plans to open a new stock exchange by using the attraction of Victoria Falls and turning the resort into an international financial centre which will be known as Victoria Falls Stock Exchange (VFEX).
Foreign investors have seemingly lost interest in the country’s capital markets, so the aim of opening VFEX is to lure investors back thus building global capital and targeting most specifically, the mining sector. VFEX will trade in foreign currency only.
The modus operandi is to mirror the likes of other offshore centres in Africa, such-as Mauritius, who is a standout offshore financial centre. Internationally, these types of centres are found in the UK, Singapore, Hong Kong and the EU (Luxembourg & Netherlands).
Frustrations mount as delays are being experienced at the Chirundu border. Zimbabwean officials have been instructed to move down south and inspect vehicles sitting at truck stops in order to combat potential smuggling thus resulting in slower processing at the “control zones”, in turn a queue has formed reaching a distance of 10km.
Just north, Zambia is still fully trading despite having 139 confirmed cases and 4 confirmed deaths due to the Coronavirus with no indication that the country will enter a lockdown anytime soon.
South Africa entered its first week of “Level 4” lockdown, as businesses slowly resume operations under very strict government regulations. Only a specified list of industries has reopened and most at a third of their work force. This coupled with the additional regulations surrounding work areas, PPE, health screening and social distancing has companies and individuals alike struggling to find their footing in the new business world. We must call on one another, not only as South Africans but as Africans to remain positive, hopeful but most importantly safe during this trying time.
“Unity, to be real, must stand the severest strain without breaking.”