With the prices going up in the region of 5% this time round and the expectancy of another increase for May, business is taking a hit in all areas as it’s becoming more and more difficult to secure consistent pricing with some prices only being valid for 1 day!
The oil base price has also increased which has affected the plastics sector and we are expecting further increases on a month to month basis if this continues.
Border updates, there has been an unfortunate event at Beitbridge border post where a driver was shot in the head.
The dangerous security situation that develops at South Africa’s land border with Zimbabwe whenever there’s congestion at Beitbridge has resulted in one fatality and a truck driver fighting for his life after he was shot in the head.
The shooting once again highlights the danger to which truck drivers are exposed when waiting in queues at Beitbridge, especially south of the border.
There is lack of solid information as to why the northbound queue through the notoriously blocked-up border is yet again an issue also contributes to the fear and uncertainty truckers have to put up with at Beitbridge.
Ever Given finally freed, news broke from Egypt this past Monday morning that Ever Given is a float. This came after dislodging efforts were ramped up over the weekend, with at least 15 tugboats working the stricken vessel while dredging was under way.
The 400 meter long juggernaut of a container ship had been grounded in the Suez Canal for six days prior to its release and in turn blocking over 300 hundred ships during this time.
This event is expected to have a major impact on the economy in the coming weeks and months.
Ivanhoe looking to advance expansions, Ivanhoe Mines are looking to advance the expansions at their Kamoa-Kakula plant in DRC which include accelerating the Phase 3 expansion at the Kamoa-Kakula copper mine beyond Phases 1 and 2.
The other is fast-tracking additional hydropower upgrades in the DRC to ensure abundant clean and renewable electricity for all subsequent expansions at Kamoa-Kakula. The management team is also evaluating a potential, state-of-the-art, direct-to-blister smelter that could bring numerous economic benefits and further reduce the project’s Scope 3 emissions.
Democratic Republic of Congo is blessed with some of the world’s greatest hydropower potential. Hydro-generated electricity which can also potentially be supplemented by solar power.
The company will now look to further increase production at the Kamoa-Kakula copper joint-venture and to accelerate the Phase 3 concentrator expansion from 7.6 million tonnes per annum to 11.4 million tonnes per annum.
Together with their partner Zijin Mining, Phase 2 has already been accelerated and they are hopeful to begin production in Q3 2022 which will bring copper production to approximately 400,000 tonnes per year and with phase 3 being brought in thereafter the annual copper production is expected to rise to 530,000 tonnes per year.
ZCDC on brink of collapse, Zimbabwe’s state-owned diamond miner is reportedly on the brink of collapse after president Mnangagwa allowed Chinese mining giant Anjin to resume operations whom the late former President Robert Mugabe forced the closure of seven mining companies, including Anjin in 2016, and went on to merge their assets into the ZCDC.
President Emmerson Mnangagwa reversed that move in a bid to restore productivity in the diamonds sector and develop the country’s ailing economy.
The Anjin Diamond Mining Company contributed about $200m to Zimbabwe’s economy before it was forced to halt operations.
ZCDC has reportedly stopped mining in four of its concessions and abandoned the exploration of three other sites as it currently faces challenges that are threatening its viability.
FQM spends big in 2020, Zambia’s largest mining company, First Quantum Mining is full steam ahead in its mission to incorporate more local people in its supply chain to strengthen Zambian-owned businesses and boost the local economy.
The mining giants procured US$1.65 billion of goods and services from companies registered in Zambia in 2020, which represents 85% of the total expenditure by its, Kansanshi Mine in Solwezi and Sentinel in Kalumbila.
More than 2,500 locally registered businesses benefited from mine contracts in 2020 alone.
It is noted that the goal of FQM’s pro-Zambian approach is to build and stimulate sustainable growth for local businesses in and around its Kansanshi Mine in Solwezi and Sentinel Mine in Kalumbila as well as the country at large.
ZCCM-IH now has complete ownership of Mopani, shareholders in Zambia’s ZCCM-IH have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines.
Glencore agreed the sale of its majority stake in Mopani to ZCCM-IH in a $1.5 billion deal earlier this year.
The general meeting vote on the resolution was the last steppingstone towards the completion of the transaction and ZCCM-IH now holds 100% ownership of Mopani, with the increased ownership, ZCCM-IH will now be an active participant in the global industry.
ZCCM-IH plans to boost the copper output from 34,000 tonnes to 150,000 tonnes and by accomplishing this they are looking to find a new investor for Mopani by the end of the year.
Catastrophic events as Islamic State attack near Total, dozens of people were attacked and killed in a raid by the Islamic State in Mozambique, the attack began on March 24 in the northern costal town of Palma close to Total’s Liquefield Natural Gas Project, a plant that the IS has been trying to get to.
Whilst hundreds of people were evacuated by boats to the provincial capital of Pemba, many people remain unaccounted for.
The attack came soon after Total announced the resumption of work at the plant, no work had been done this year due to lack of security in and around the area.
Total has now said that it would reduce the number of workers on site going forward but for now no work will be done.
The terror attacks have so far claimed over 2,000 lives and about 1.3 million people face security crisis. Nearly 670,000 people have been displaced.
The world is starting to take a closer look, but no real aid has taken place, Mozambique clearly needs help and it’s time that its surrounding allies intervene with help from abroad.
We would like to take this time to wish our customer’s a Happy and peaceful Easter, and to enjoy their time with their families and most importantly to stay safe.
“The laughter of a child lights up the house”
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”
Steel shortages continue! The steel shortage in South Africa continues with rumours spreading that by mid year the sector should start to see an increase in steel levels as Mittal’s furnaces start to reach full capacity.
There is yet another steel price increase looming for the month of March totalling 8 consecutive steel increases over the past year into 2021 excluding December 2020.
ArcelorMittal SA announced last week that it will ramp up the production at its Vereeniging operation from half to full capacity, which is a direct response to a sudden increase in demand within South Africa and African overland markets.
The billet produced at the Vereeniging mill will be used for specialty input material to its Gauteng operations and various other mills across the country. It is expected to reduce the production demand from the Newcastle operation, which in turn will ensure more steel can be supplied to its long steel customers.
There is a base tariff protection on flat and long steel imports into South Africa of 10% and certain flat products are also subject to safeguard duty of 8%, which results in overall protection of 18% on certain grades.
Now with the hospitals requiring oxygen for COVID patients, this has thrown a spanner into the works for the steel sector, oxygen is in such short supply in South Africa that some companies are paying 30 times the usual going rate to keep critical equipment going and projects on track.
Companies with critical equipment that require oxygen were stretching what they have and rationing where necessary, in one case paying R4,000 for a bottle, compared to a usual price of R140.
Both Afrox and Air Liquide issued for majeure notices to customers in the face of what they said was a clear ethical and moral duty to prioritise supplies.
Industrial users have accepted that need, but say they hope to talk to suppliers about future supply crunches.
Livingstone closure sparks outcry, there’s been an uproar from opposition ranks of cross-border transporters ever since Zambia’s Road Development Agency decided to prevent road hauliers from using the Livingstone-Vic Falls border with Zimbabwe from March 1, as decision that has been on the cards for some time.
The reason for this decision is that the Zambian government feels that due to the bridge being a single lane carriage-way it’s affecting tourism in a negative way as most of the vehicles crossing are for road freight, which has been on the increase.
Essentially it means logistic operators into the Copperbelt in Zambia and the Democratic Republic of the Congo will have to cross the Zambezi at Kazungula, a treacherous ferry transit which is sparking concern from transporters as there has been cases in the past where trucks have slipped off the ferry due to safety measures not being followed. The decision is also particularly bad for hauliers based in Zimbabwe sending shipments to the Copperbelt.
The secret of Kazangula, months after the much-hyped Kazungula Bridge across Zambia’s touch-point with Botswana, Zimbabwe and Namibia’s Caprivi Strip was finalised, transporters are nowhere near knowing when the bridge will be handed over to the respective road authorities for use.
Word on the ground has been that the opening could be any day now, since the bridge’s lights were turned on in September last year, as if to signal that southern African logistics could be in for an early Christmas surprise but still to now, there is no concrete evidence as to when the bridge will be open for use.
There has been speculation that the necessary bilateral agreements between Botswana and Zambia haven’t been signed yet.
Its time the bridge is opened now especially since the announcement of the closure of Livingstone-Vic falls, this will aid in goods moving smoothly both north and south as well as faster turnaround times as transporters won’t have to deal with the ferry system.
Vedanta denied halt of KCM split, A Zambian court on Monday dismissed a motion by miner Vedanta Resources’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines (KCM) unit and selling the assets.
Vedanta has been in an ongoing dispute with the Zambian government since May 2019, when the Zambian government, which owns 20% of KCM through state mining investment firm ZCCM-IH, handed control of the mine to a liquidator.
Vedanta said the plan to split KCM is illegal, and would result in a substantial loss in revenue for Zambia.
In an announcement in December, President Edgar Lungu said KCM would be split into two subsidiary companies, KCM SmelterCo Ltd and Konkola Mineral Resources Ltd, which would be effective 1 February 2021.
While the split was delayed by Vedanta’s injunction order, it is noted that the two entities are expected to begin to operate soon.
Tanzanian assets revived, Barrick Gold reported last week that it had successfully revived its North Mara and Bulyanhulu gold mines in Tanzania with North Mara having significant improvements and underground production being restarted at Bulyanhulu.
Both mines produced close to the top of their production guidance in 2020 under Barrick’s first full year. The Tanzanian operations delivered a combined output of 462,472 ounces for the year.
During the fourth quarter, North Mara posted a record throughput while Bulyanhulu recommenced processing of underground ore, Bulyanhulu is scheduled to be in full production during the first half of 2021.
Barrick assumed control of these assets after re-acquiring Acacia Mining in September 2019. The company is now managing the mines.
Barrick is currently optimizing a 10-year plan to make the combined North Mara and Bulyanhulu mines its seventh tier-one asset by bringing them into the lower half of the industry’s cost curve. At the same time, the company continues to work on improving relations with its host communities.
Zimbabwe scraps indigenisation law, last week miners in Zimbabwe were worrying over an amendment to ownership laws that seemingly reintroduce the country’s controversial laws which were previously scrapped in 2018. The change in laws back then paved the way for foreign owned entities to rightfully hold up to 100% ownership of a mine.
However, the wording of this amendment was unequivocally flawed, leaving it very much open to interpretation. In a joint statement issued by the ministries of finance and mines it was claimed that “last weeks’ notice may have caused some misconception to some inventors and other stakeholders in the mining sector”
Coincidentally, whilst this has captivated the attention of many, it has come to light that the Zimbabwean government has granted mining entity Great Dyke Investments a five-year tax exemption. In a notice, deemed to have come into effect from 1 January 2020, it is stated that “the receipts and accruals of Great Dyke Investments (Private) Limited, as per the Special Mining Lease Agreement signed between the Government of Zimbabwe and Great Dyke Investments (Private) Limited are approved”.
Nigeria to aid Mozambique in terrorism fight, Nigeria has offered to support Mozambique in its fight against Islamist insurgents in the gas-rich northern province of Cabo Delgado. Nigeria joins a list of numerous African and international countries offering aid to the terrorism rife region.
More than 2,000 people have been killed and more than 500,000 others displaced in the violence, according to the International Committee of the Red Cross.
It is said that Nigeria is ready to share its experience of fighting Islamist militants and provide support to Mozambique. But observers will question whether it’s best placed to offer advice, given the continued insecurity in Nigeria.
Mozambican President Filipe Nyusi urged the defence and security forces to fight hard against terrorists in the province of Cabo Delgado and against the Renamo Military Junta in central Mozambique.
Nyusi also urged those who have joined terrorist organizations and armed rebel groups to surrender, disarm, demobilize and reintegrate into the society.
Happy New Year! Abeyla Exports would like to wish our Chinese customers a happy new year with many blessings for the year ahead!
“Knowledge without wisdom is like water in the sand”
Steel increase! as of last week Friday ArcelorMittal and other major mills in South Africa announced a further price hike in the region of 5% for February with further impending increases as the year goes on. This is putting an unbelievable amount of pressure on the steel sector in South Africa, coupled with the latest indefinite load shedding schedule, manufacturing, distribution and logistics have become a nightmare for all involved.
South Africa’s economy faces challenges, the decline in manufacturing production growth in November last year is a clear indication that South Africa’s economy is in for a rough ride to recovery, especially under the current adjusted level 3 Covid-19 pandemic restrictions.
It is noted that production declined by -3.5% year on year in November 2020, and at the same time also declined -1.3% month on month from October 2020, down from a growth of 3.2% from September 2020 to October 2020.
“The manufacturing sector remains key to the growth and development of South Africa due to its spill-over effect into other sectors of the economy such as the construction sector, especially through the Metals and Engineering (M&E) sector, which remains the major supplier of crucial inputs such as steel,” said Seifsa chief economist Chifipa Mhango. “The data released suggest a worsening trend following a slower decline in the previous months,” he added.
Record gold production achieved! Gold producers Caledonia Mining Corporation produced a record 57 899 oz of gold from the Blanket Mine in Zimbabwe during 2020 with an approximate of 15 012 oz of gold produced during the fourth quarter of 2020.
2020 is a record year for Caledonia who are also on track for the commissioning of Central Shaft to be completed in the first quarter of 2021.
In December Caledonia also announced that they had entered into option agreements on two properties in Zimbabwe, delivering on their strategy of organic growth whilst increasing the dividend for a fourth time at the start of January to 11 cents a share
It seems that the sky is the limit for Caledonia at the moment and their plans are paying of whilst also creating genuine value and returns for their shareholders
Zambian government claims Glencore stake, Zambia’s state mining investment arm ZCCM-IH has agreed to buy Glencore’s majority stake in Mopani Copper Mines in a $1.5 billion deal funded by debt and will seek a new investor, the government said earlier this week.
The sale follows Glencore’s attempt to suspend operations at the mine last year due to the low copper prices and COVID-19 disruptions which then prompted a government threat to revoke the company’s mining licences.
The takeover coincides with Zambia’s preparations for elections in August, with President Edgar Lungu courting voters in the copper belt. More than 15,000 workers would have lost their jobs if the mine was closed.
Glencore will continue to control buying rights for Mopani’s copper output until the transaction debt has been repaid which will be paid by giving Glencore creditors 3% of Mopani’s gross revenue from 2021-2023 and 10-17.5% of Mopani’s gross revenue from then on.
The country will have to attract new investors, it is said that companies from Britain, Canada, China, South Africa, Turkey and Qatar have expressed interest.
Political violence stops cargo movement, Cross-border movement in both directions through the Copperbelt crossing of Kasumbalesa between Zambia and the Democratic Republic of the Congo has ground to a halt because of political unrest.
Protest flared up in the town of Kasumbalesa north of the border which unfortunately effected the flow of freight through the border.
A crucial transit on the North-South Line into the DRC’s copper mining areas in Haut-Katanga province, Kasumbalesa has been quiet and free-flowing over the last few months.
Challenges in the past have regularly caused congestion at the border however the events earlier this week represent the first time in months that Kasumbalesa, rather than other NSL crossings like Chirundu and Beitbridge, has led to cargo on the NSL coming to a halt.
Port of Beira shuts shop as storm Eloise approaches, The Port of Beira is taking no chances as storm Eloise spins in a south-easterly direction towards the coastline of Mozambique, although the eye of the storm was expected to pass south of the port and make landfall today in the vicinity of Vilankulos which is roughly 500 kilometres south of Beira, the latest update is showing that the storm is going to hit the port directly.
The last time the city of Beira had to contend with a severe weather event was in March 2019 when Idai cut a path across the old city, these days the focal point of intensified reinvestment as Mozambique positions its ports for ramped-up logistics.
The SA Weather Service has warned that the cyclone, much like Idai, will increase in intensity as it makes its way across the channel’s warmer water with an anticipated speed of 166-213 kilometres an hour by the time it hits the coast.
From there it’s expected to make its way across Mozambique’s provinces of Inhambane, Gaza and Maputo further inland.
Authorities in South Africa’s provinces of Limpopo and Mpumalanga have been on high alert, with rain and extreme wind predicted despite Eloise expectedly losing force the further it moves into the interior.
Calls for the US and France to assist, African Energy Chamber chief executive NJ Ayuk is appealing to the United States and France to intervene in the insurrectionist violence currently threatening resource exploration in Mozambique.
Such a move is crucial not only to protect the liquid natural gas interests of ExxonMobil, the US multinational petroleum company involved in Cabo Delgado province, but also to secure the continent’s energy prospects.
There has also been appeals to France to do the same on behalf of Total, the other major multinational that has invested billions in Mozambique’s LNG fields south of its Rovuma Basin border with Tanzania.
Government leaders will need to reach out to militant groups and begin a confidence- and trust-building process that will hopefully lead up to a mutual ceasefire agreement.
In this respect, US and French diplomatic involvement could prove fundamentally important in defusing the powder keg situation in Cabo Delgado.
2021 will be “the decisive year” for defeating terrorism in the northern Mozambican province of Cabo Delgado, according to the newly elected Maj-Gen Eugenio Mussa.
He called on Mozambican troops to act rigorously, to wipe out definitively the armed groups that have been terrorising several Cabo Delgado districts since October 2017.
French owned Tota has ordered a temporary evacuation of some of its workers from the Afungi Peninsula, an area which has experienced one of the most recent attacks by the insurgents.
“Don’t set sail on someone else’s star”
Border updates, chaos had once again returned to the Beitbridge border post over the festive period, from what seemed to be been a victory leading up to the December month turned south very fast as queues of up to 35kms were experienced at a stage, the lifting of COVID testing for drivers going north and the failure of system implementations all added to this, on the flipside, drivers coming south into South Africa also faced problems when the South African Department of Health demanded that all inbound travellers were to be tested for COVID which lead to around 2000 trucks being detained at Beitbridge, this also created fears of health risks to travellers and residents within the Beitbridge area.
This past week there has been concern for possible super spreader events as thousands of people have been stuck on the Zim side waiting to enter South Africa, most not wearing masks and not adhering to social distancing measures, this issue arose when authorities in Harare announced that only Zimbabweans with South African permits would be allowed to cross the Limpopo heading south.
Delays continue further to the east at the Ressano Garcia border between Mozambique and South Africa which has resulted in trucks and other vehicles queueing three lanes abreast for at least 10 kilometres. The delays are starting to become so bad that Mozambique yesterday requested clearing agents and customs authorities at Lebombo Border Post not to let anyone through.
It seems that South African truck drivers have been denied access into Angola, however the Angolan government is denying this.
This emerged after a high-ranking official from Namibia’s hinterland logistics sector confirmed that at least three senior officials from the Trans-Cunene Corridor had told him that trucks entering Angola must be driven by Namibian drivers. According to an Angolan official, this is untrue and the only request that they have is that drivers must present the RT-PCR test of the country of origin, however the TCC emphasised that if this coronavirus testing measure was negative, all truck drivers were allowed to proceed to their destinations as per international transit protocol.
Level 4, Zimbabwe entered level 4 lockdown on Tuesday for a period of 30 days which restricts the country’s movement to almost a standstill, inter city travel is prohibited unless you are an essential worker and only the mining, agriculture and manufacturing sectors are currently allowed to operate. It is also noted that only Zimbabwean citizens are allowed to enter the country.
The South African government is also currently in council where rumours are rising that South Africa itself will be entering a harder lockdown, this comes after the country entered level 3 on the 30th of December last year which was expected to only last two weeks, however there has been an emergency meeting called and the citizens now await the verdict, roadblocks have been setup on provincial borders this week adding to the rumours that a harder lockdown will be put in place.
Caledonia to enter further exploration, Caledonia can gain exclusive rights to explore and subsequently, if exploration is successful and at its sole discretion, acquire the mining claims over an area known as Connemara North, a property which, like Glen Hume, is situated in the Gweru mining district in the Zimbabwe Midlands that has historically produced significant quantities of gold.
Connemara North is approximately 30 km from Glen Hume with good road access between them offering the potential of operating in synergy should Caledonia decide to develop both areas.
It has not been commercially mined since 2001 before being placed on care and maintenance. Connemara mine produced approximately 20 000 ounces of gold per annum from an open pit heap leach operation. Originally in 2001 First Quantum indicated that they had plans to expand the existing open pit operations at Connemara mine but this never materialised.
The option gives Caledonia the right to explore the area for a period of up to 18 months.
Kuvimba seeks $1 billion for acquisitions, Kuvimba Mining House Ltd., in which the Zimbabwean government is the majority stake holder at 65%, will invest an incredible amount of the cash raised on the Darwendale platinum project, which belongs to its Great Dyke Investments unit. Kuvimba is held by government pension funds and Zimbabwe’s sovereign wealth fund.
It is believed that around $100 million will be set aside for acquisitions and capital expenditure over the next 12 months.
The group, whose portfolio includes gold, nickel and platinum, will raise part of the money internally through its operations, it will also issue debt. Kuvimba has three working gold mines producing about 300 kg of the metal each month and owns a nickel mine with monthly output of 550 tonnes.
The company is finalizing negotiations to acquire Metallon Gold Zimbabwe Ltd.’s Mazwoe mine. It is looking at other assets such as lithium, nickel and copper and further exploration into Africa.
Zambian court orders liquidator to stay, A Zambian court has ruled the state-appointed liquidator of Vedanta’s Konkola Copper Mines will not be discharged despite a November ruling ordering a halt to proceedings to allow Vedanta and minority KCM shareholder ZCCM-IH to pursue arbitration.
The government accused Vedanta of failing to honour licence conditions, including promised investment. The liquidator has since said he intends to split the company, with possible asset sales to follow.
In a statement after the ruling, KCM provisional liquidator Milingo Lungu said his powers were valid. He said he would split KCM into two companies effective Jan. 31, and that asset disposal was likely KCM’s only remaining option.
Given the impasse between stake holders and government it is unclear whether any keen consumers might be discovered.
International Legal opinion maintains that there would be no way a provisional liquidator could commence with disposing of KCM assets because anybody buying them would effectively be acquiring tainted property and would therefore be party to an unlawful act.
Copper growth in Africa expected to grow! Demand in China is remaining especially strong as it moves out of the crises towards full normalization of all economic activities. Prices have rallied and surged in part attributed to the various disruptions from top producer Chile.
Long term outlook remains positive and demand set to increase with investments in electric vehicles and renewal energy as well as infrastructure projects particularly being driven in China. Prices are also being pushed up by grade decline, rising input costs, water constraints and high-quality development opportunities becoming scarce. These factors will continue to push prices up as well as motivate miners to improve their margins by introducing better efficiencies.
New SA trade agreements! Friday marked the start of trade for South African firms under two new trade agreements, the Trade and Industry and Competition Department said. These agreements are with countries ready to trade under the African Continental Free Trade Agreement (AfCFTA) and with the United Kingdom following Brexit.
South Africa had put in place the legal and administrative processes for the start of trade under the AfCFTA on January 1, 2021 following a decision to start trading under the AfCFTA by the 13th extraordinary session of the assembly on the AfCFTA on December 5, 2020.
The AfCFTA agreement which was signed by 54 of the 55 African Union member states consisting of 34 countries had already given their approval to the AU Commission and became state parties, the parties include Angola, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Congo, Djibouti, Egypt, Eswatini, Ethiopia, Equatorial Guinea, Gabon, The Gambia, Ghana, Guinea, Kenya, Lesotho, Mali, Mauritania, Mauritius, Namibia, Niger, Nigeria, Rwanda, Saharawi Arab Democratic Republic, Sao Tome and Principe, Senegal, Sierra Leone, South Africa, Togo, Tunisia, Uganda, and Zimbabwe.
In addition, trade for local firms with the UK commenced on Friday under the new economic partnership agreement between six southern African countries which include South Africa, Lesotho, Eswatini, Namibia, Botswana and Mozambique replacing the European Union partnership terms for the UK market that was in place until December 31, 2020.
The UK agreement effectively retained the terms of trade in the existing EU agreement and would govern the bilateral trading relationship between each of the Southern African countries
SADC must tackle Mozambique’s terrorism!! Up to now, Mozambique has only requested SADC to provide military supplies, as Maputo resists any kind of external support that may lead to multilateral foreign intervention.
This is not a crisis that one country can solve alone; the Institute of Security Studies noted.
President Nyusi announced his intention to eradicate the violent extremists but his government has been unable to do so for the past three years and each passing day strengthens the extremist resilience and complicates the liberation of Cabo Delgado and the millions of Mozambicans at risk.
Although Mozambique had enlisted Russian and South African mercenaries to help fight the insurgency, no single SADC state has the military strength or financial capacity to intervene in Mozambique said the ISS.
United Nations has pledged to raise $254 million to assist terrorism-affected people in Mozambique. The plan will be deployed in 2021 and is expected to benefit 1.1 million people in the Cabo Delgado province and surrounding areas.
According to humanitarian bodies, the resources will be used to establish new camps for refugees and internally displaced persons.
In the meantime, Total SE has asked some staff to vacate its $20bn Mozambique liquefied natural gas (LNG) project with fighting reported to be less than 5km away from the plant.
The situation is grave and set to worsen with the terrorists taking control of transport links, terrorizing villagers and depopulating towns. Urgent intervention is needed.
“The Earth is a beehive, we all enter by the same door”
Steel price increase! With the current steel woes South Africa is facing, there is a steel increase on the cards for January 2021, so far two major mills have announced an increase across the board of around 3-6% on all products whilst the industry anxiously awaits an announcement from ArcelorMittal.
So far the steel shortage situation remains the same as we eagerly await Mittal’s furnaces to fire back up early next year.
There are also concerns coming from the Manufacturing and Engineering sector that the possible 10% electricity hike for next year could be detrimental to the revival of the sector.
Border updates, there has been a complete U-turn at Beitbridge, following for the previous positive update, Beitbridge is once again bottlenecked.
The southbound queue of loaded and backhaul trucks heading out of Zimbabwe to South Africa is again being snagged by bottlenecking at the Beitbridge Border Post. Zimra has said that they are doing everything in their power to relieve the congestion. So far the northbound queue is clear.
South Africa’s Skilpadshek Border Post which is on the Trans-Kalahari Corridor (TKC) through Botswana continued to be affected by slow coronavirus testing procedures this morning. According to the Transit Assistance Bureau, the building backlog at the border stems from Botswana’s inability to cope with the testing of truck drivers for Covid-19.
A decision taken last month to not test drivers coming from South Africa who are in possession of a polymerise chain reaction (PCR) negative test result which is not older than 72 hours has not had the impact they thought it would have on easing congestion.
The notion that Botswana seems incapable of coping with capacity requirements for testing drivers not in possession of PCR results only serves to support criticism that the country’s inflexible Covid-19 testing regimes are impeding its strategic logistics position in the sub-Saharan region.
In the meantime, transporters using the TKC to get to Namibia are increasingly avoiding the corridor, preferring instead to bypass Botswana altogether which in turn has bottlenecked the Nakop Border post in Namibia.
Container rates soar, exports from South-East Asia have recovered fast from the COVID-19 pandemic however the shipping costs have climbed drastically.
This is due to a high demand and no supply as trade routes have been interrupted by the pandemic. Shipping lines are also taking advantage of this by using the peak season surcharge as a reason.
The cost of putting one container on a ship can cost in the region of $5,000.00 up from an average of $1,300.00 earlier this year.
It is expected that the current rates will continue into early to mid-next year.
Rio Completes Copper Project, Rio Tinto has completed the initial work on the Midnight Sun Mining’s Solwezi Licenses in Zambia.
After incurring project expenditures in excess of $3 million during the initial work phase, Rio will now proceed to the next stage of the agreement.Top of Form
This would allow the company to earn a 51% interest in the Solwezi licenses by spending a further $16 million on the project within four years, as well as by making cash payments to Midnight Sun.
The project is situated on the Zambia-Congo copper belt and is immediately adjacent to Africa’s largest copper mining complex, First Quantum’s Kansanshi mine.
Zambia in negotiations with IMF, Zambia has just begun negotiations for financial support from the International Monetary Fund. The IMF announced this in an official statement
This announcement comes at a time when the Zambian economy has been declining due to several years of crisis. Drought, difficulties in the mining sector, and rising debt had pushed the country to adopt austerity measures in recent years to cope with the situation. However, the covid-19 pandemic that has plagued global economic activity has contributed to the accelerated decline of the Southern African country’s economy.
Great Dyke Sells Stake, Great Dyke Investments who is planning to build Zimbabwe’s biggest platinum mine, has sold a 4.4% stake to Fossil Mines as Covid-19-disrupted fundraising for the venture.
Fossil, which is Zimbabwean owned, will invest $30m in the Darwendale project, through a combination of cash and services, including engineering, procurement and construction. That leaves Vi Holding and Zimbabwe’s Landela Mining Venture each with a 47.8% stake. The sale values Great Dyke Investments at $680m.
The covid-19 pandemic has delayed fundraising for the project, which was originally due to be completed in 2020. Financing of $665m is now expected to be finalised in the first quarter of 2021.
The Darwendale project has the potential to become one of the world’s biggest platinum mines and its development is central to the Zimbabwean government’s plans to reboot a collapsing economy.
Zimbabwe has the world’s third-largest platinum group metal reserves after SA and Russia.
Millions lost to illicit mining, Zimbabwe continues to lose millions of revenue in illicit gold mining, In Mazowe, 40 km outside the capital Harare, artisanal miners have broadened their search for gold ore as they continue digging the soil underground in some cases to over 50 metres deep. Some artisanal miners are receiving up to $40 per gram of gold.
According to government statistics, the bulk of the gold is extracted by artisanal and small-scale miners who are responsible for 63% of the recorded production. In most cases, the artisanal miners operate illegally and do not sell the mineral to the state-owned buyer.
Trucker violence on the down, following from the last report, it seems police and other law agencies have managed to clamp down on the truck attacks. Currently there has been no news of any attacks over the past week. Hopefully this will remain.
Kamoa-Kakula stockpile building up, Ivanhoe Mines has announced that underground development at the Kamoa-Kakula copper project, in the Democratic Republic of Congo, produced a combined 250 000 t of ore, grading 4.85% copper, in November.
The tonnage from the Kakula and Kansoko mines is 29% higher than the volumes achieved in the previous month whilst the grade of copper also increased month-on-month from 4.01% to 4.85%.
The project’s surface stockpiles now contain about 1.25-million tonnes of high-grade and medium-grade ore, which has an estimated grade of 3.75% copper and is on track to have around three million tonnes of high and medium grade ore stockpiled prior to the planned start of production in July 2021.
The Kamoa-Kakula’s first phase involves mining and milling 3.8 million tonnes of ore a year, whilst a concentrator that is expected to handle the same amount of volume is currently being built.
US Support counter-terrorism, The United States is not considering sending troops to Mozambique to combat the terrorist threat in the northern province of Cabo Delgado, but are willing to aid civilian counter-terrorism capabilities.
The United States wants to be Mozambique’s security partner of choice in strengthening border security and in strengthening its capacity to counter terrorist activity.
Terrorists in the northern Mozambican province of Cabo Delgado are apparently dying daily as the Mozambican police have managed to cut out their supply system. It is also noted that the defence force managed to block out an insurgent attack on Maputo as well as neighbouring cities.
There is also concern that the terrorists are using a port or aerodrome in Cabo Delgado to move drugs and guns into the country. However the Cabo Delgado coast and offshore islands are under the control of the Mozambican authorities
Earlier this week Islamist militants attacked and occupied a northern Mozambican village in their closest raid yet to a giant gas project. The assault came late Monday night on the village of Mute, some 20 kilometres from the Afungi peninsula which is the centre of a multi-billion-dollar scheme to build a liquefied natural gas plant in Cabo Delgado province.
The attackers targeted government soldiers in the village and torched homes.
The attack has raised concerns about security at the Afungi peninsula, where the French energy major Total and the United States’ Exxon Mobil are among the investors.
Air force reinforcements from Dyck Advisory Group have been deployed from Pemba to bolster up government troops seeking to retake Mute.
“However long the night may last, there will be a morning”
Level 1 restrictions eased, on Wednesday night 11th November 2020, South Africa’s president, Cyril Ramaphosa announced the easing of South Africa’s level 1 lockdown, opening the borders up to international travellers as well as allowing alcohol to be sold within the pre-covid trading hours, this is yet another step in slowly opening up the economy and to allow more growth, although opposition parties and leaders have bemoaned the extension of the state of the disaster it seems the people of South Africa as a whole are feeling more positive.
Border updates, the Beitbridge saga continued since the last report, however as of yesterday it is noted that congestion has eased significantly, with compliments pouring in from the transport industry about the SA Revenue Service’s decision to discontinue issuing CN2 gate passes at Beitbridge, an intervention that now appears to have completely decongested northbound transits. There is however a slight delay on the Zimbabwean side as authorities were overwhelmed with trucks crossing from the SA side but they are dealing with each truck in good time.
This is a breath of fresh air since the 21st of October when the congestion began, reports of crime and violence emerged as well as a driver losing their life.
We hope the new system implemented can keep traffic at a free flow for some time to come.
A joint effort between DRC and Zambian officials have effectively decongested the Copperbelt crossing of Kasumbalesa, that in the past has been known as a notoriously problematic border.
Prior to the Covid-19 lockdown, Kasumbalesa’s fragile workability could result in cargo disruption at any given time. The impact was immediately felt when COVID-19 hit, leading to a northbound cargo queue stretching some 90 kilometres south-east through Chingola towards Kitwe.
Knowing that vast action was needed to clear the border and boost imports and exports into the region which is known for its copper mines, DRC and Zambian authorities got together to combat a troublesome border which resulted in the decongestion in under a week. This just proves once again that when people come together nothing is impossible.
Zimbabwe under pressure to end gold sales, Gold mining investors are pressuring Zimbabwe to change a law forcing producers to sell their output to the central bank, who then part pays them in local currency that is useless outside the country.
Whilst mining investment is key to rebooting Zimbabwe’s collapsing economy, the nation suffers from a shortage of dollars. As the rally in bullion generates more interest in the industry, the government is weighing its options on whether to grant investors gold-trading licenses.
Zimbabwe currently forces gold miners to sell their bullion to Fidelity Printers and Refiners Ltd. It pays them 70% in dollars and the remainder in local currency.
Bravura enters the frame; Nigerian owned Bravura Holdings has $1 billion available for the development of a platinum mine in Zimbabwe.
The 3,000-hectare concession where it plans to dig the mine is in Selous, 80 Kms south of Zimbabwe’s capital Harare which is close to existing platinum mines.
Bravura is one of a number of companies that have secured platinum concessions in Zimbabwe as the government seeks to kick start its stagnant economy. Still, established platinum miners haven’t announced plans to expand their operations.
While Zimbabwe has the world’s third-largest platinum group metal reserves, investors have been deterred by frequent changes to mining laws and currency policies.
Rare diamonds have been discovered in Matabeleland South and Masvingo provinces, the findings come after Alrosa, a Russian mining firm had done extensive exploration at the Malipati Diamond Project and say these findings have the potential to change the face of Zimbabwe’s gem industry.
In collaboration with state-owned diamond miners ZCDC, Alrosa has come to this discovery on finding this “Type II” diamond. Type ll diamonds have no nitrogen in their composition and come with a much higher price tag to them.
Rushinga District in Mashonaland Central province there is a potential new Chinese investor looking at the exploration of iron deposits.
The investor, who already has steel smelters in China’s city of Handani are under pressure to curb pollution, has already partnered local investors with plans underway to develop mines and build smelters, this is, however, subject to an in-depth exploration to confirm commercial quantities and quality of the resource. There is evidence of the existence of iron deposits in mountain ranges of Mavhuradonha, which stretches into Mozambique.
The project has been in the pipeline for the past 18 months, but was delayed due to global pandemic, supply chains disruptions and travel restrictions.
The investor had plans to commence production in 2023.
A special tasks force within the Ministry of Mines and Mining Development, has been formed to oversee the implementation of the project.
Zimbabwe Iron and Steel Company is Zimbabwe’s only integrated steel firm, however operations stopped in 2008 due to lack of capital and poor management. The company had capacity to produce up to one million tonnes annually, the company was among Zimbabwe’s major foreign currency earners.
Kakula tunnels successfully connected, Kakula mine in Kolwezi, DRC which is being developed in the eastern part of the Kakula deposit has reached a major milestone as the Northern and Southern tunnels have now been successfully connected.
Kakula is the first of many underground copper mines to be developed in the 400sq km region, the average grade of copper is said to exceed 8%.
The Kakula Mine is expected to have a mine life of approximately 21 years, whilst Kakula West which is Kamoa-Kakula’s third underground mine to be developed has a projected mine life of approximately 16 years.
The underground development on the south decline was performed by the mining crew of JMMC who are the DRC subsidiary of leading Chinese mining contractor JCHX, the northern decline was performed by Kamoa Copper’s mining crews.
Further developments are planned to commence mid next year where a set of connection drives is expected to hole by June 2021 which will open up an additional high-grade and medium-grade mining block and phase 1 copper concentrate production from the Kakula Mine is scheduled to begin in July 2021.
Earlier in the month Nanjing Hanrui Cobalt Co Ltd, advised that they expect to start their cobalt production line in the DRC Later this month, moving into December.
The 5,000-tonnes-per-year production line in Kolwezi, DRC, was expected to be running earlier this year but due to the COVID-19 pandemic all operations were placed on hold.
The firm was still discussing sales contracts with foreign traders and domestic users.
Terrorising of Mozambique continues! More than 50 people were killed in a terrorist attack last Friday in northern Mozambique where insurgents attacked a village.
Up to 2,000 people have been killed and about 430,000 have been left homeless in the conflict in the mainly-Muslim province. The militants are linked to the Islamic State (IS) group, giving it a foothold in southern Africa.
The group exploits poverty-stricken areas and the unemployed and grows their numbers by recruiting the youth in their fight to establish Islamic rule in the area. Many locals complain that they have benefited little from the province’s ruby and gas industries.
Zimbabwe president Emmerson Mnangagwa has recent said that he will be sending troops over to help with the insurgents.
“If you climb up a tree, you must climb down the same tree”
Prices on the rise as materials disappear, buckle in!! Further steel price increases have been announced for November which will be the ninth consecutive increase this year exacerbated by low stocks countrywide. South Africa is facing a steel shortage and explosive prices.
This trend has now moved over to the HDPE and Plastics sector and shortages of raw materials are being experienced by all the major manufacturers. Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.
Various factors have been blamed both locally and internationally and Force Majure has been announced by many different industries who find themselves unable to perform to their pre-covid-19 service and production levels.
Output as a general for HDPE polymers was 3,300 Tons per month which then dropped to 2,500 tons and as of the latest notice a further 15% drop is expected in production.
Border updates, Chaos at Beitbridge over the past week, A motorist sadly passed away last week when a bakkie travelling south towards Musina from the Beitbridge border post between South Africa and Zimbabwe collided with a truck that had reportedly crossed into the oncoming lane to overtake gridlocked traffic heading north. The fatal collision once more demonstrates that traffic officials should be held culpable for allowing cars and trucks going north to drive three abreast on a single-lane highway.
Intervention seems to be on the cards after the build-up of traffic south of South Africa’s Beitbridge border with Zimbabwe has deteriorated to such an extent that some sources say it is the worst it has ever been this century.
This comes after northbound transporters stuck at the Limpopo crossing posted video footage on social media of the Transit Assistance Bureau clearly showing how trucks, cars and buses were milling around as if no traffic officials were present to establish order. The queue already stretched to the Baobab truck stop some six kilometres south of the border.
Suggestions were made to officials that the border should be opened up to clear the congestion and alleviate pressure on officials clearly incapable of coping with mounting volumes.
Since the suggestions were made, South Africa’s Beitbridge border into Zimbabwe has virtually transformed and a recorded 18km queue has been reduced down to less than 1km. The northbound queue has also has also been reduced to a single lane of traffic.
Last week at the Lebombo Border Crossing there was also a backlog as vehicles trying to cross into Mozambique from South Africa came to a standstill, chrome trucks, general cargo and the bakkie brigade loads jockeying for position whilst customs continue to take their time.
Call went out for the border to operate 24/7 and it seems that the cries were heard, transit times at the border have been substantially reduced with around 450 trucks cleared every 24 hours.
Meanwhile there is no certainty about what the border authorities have done but it’s obviously helping, bringing much-needed relief to private sector interests who often complain of extended standing time at the border.
The real test will come towards the end of the week as volume often picks up towards the weekend.
Finally, the opening of the Kazangula Bridge may happen before the end of the year, the bridge was initially supposed to be completed back in 2018 but due to various delays there is now a promising outlook that the opening will be soon, this comes after it was reported that ZRA had announced that it would be moving its regional office from Livingstone to the southern Zambian town from which the much-hyped linkage has taken its name.
Speaking to a Zambian news site, ZRA emphasised that the $70-billion bridge into Botswana would boost trade in Zambia’s southern province significantly, with tangible benefits for revenue collection.
Transporters will also not need much persuasion to divert traffic away from other north-south route border posts such as Beitbridge, considering the shambles it has been of late.
Zimbabwe mineral production increases, The Zimbabwe mining industry has managed to stay afloat with sustainable, profitable and balance production results whilst still fighting off the challenges faced within the mining sector.
Adding onto this, the mining sector has become quite optimistic about 2021 with the ever-improving commodity prices and a favourable local fiscal the sky is the limit for Zimbabwe in 2021.
90 percent of miner’s plan on upscaling production in the coming year with the other 10 percent expecting production to remain the same. Gold output is expected to increase around 30% in the coming year, followed by platinum and coal spurred by world commodity prices that continue to move upwards.
Terrorism crossing the border! The Islamist terrorist group operating in the Cabo Delgado region of Mozambique have made their away across the border to Tanzania, where it is reported 20 people were beheaded.
The attack was carried out against the village of Kitaya, in Mtwara province, near the border with the Cabo Delgado district of Palma.
According to military sources cited by the newsheet, the terrorists entered Tanzania by sea, going up the Rovuma river that forms the border between Mozambique and Tanzania.
The raiders burnt down houses, destroyed an armoured vehicle and stole money and military equipment. The terrorist network that calls itself “Islamic State” claimed responsibility for the attack, and reported three Tanzanian soldiers had been killed in the ensuing battle that followed.
“Rain does not fall on one roof alone”
Border updates, Beitbridge is currently a mess as COVID screening and an influx of trucks plus the added construction happening in the truck yards has created a massive delay on the South and North side of Beitbridge, SARS and ZIMRA are both blaming each other for the delays in clearance, agents are fighting for drivers to complete their COVID screenings online which would speed up the process by a considerable amount. On the Zim side of the border congestion seems to be an unsolvable situation at the moment, with capacity and capability issues at the container depot (ConDep) and the Vehicle Inspection Department (VID) making matters worse.
With all the checks required on the Zim side, even within the port confines FESARTA are trying to get drivers and agents to have runners available at night.
It is known that the truck parks regularly fill to overflowing, despite Zimra working through the night.
With just days to go before Zambia introduces a new toll for foreign-registered vehicles whom already pay entry-and-exit tariffs which has been recorded to profit the country about $160 000 a day, transporters are desperate for intervention.
Effective 19th October 2020, all foreign-registered vehicles will have to cough up extra fees at tolls both at ports of entry and inland toll stations in accordance with Statutory Instrument No. 74 of 2020.
There is quite a bit of confusion especially with such short notice, transporters are asking the questions whether they will be paying double the toll fees in Zambia, other transporters are concerned that their vehicles will be stuck at these tolls as they will not have enough money with them to pay.
According to a transporter who travels in and out of the Copperbelt area spread across the north-eastern border of Zambia into the DRC, truck drivers will have to pay about 150 kwacha every time they pass through a toll gate.
In South African rand terms that’s more than R122 each time.
On the North-South Corridor stretching through Zambia into the DRC’s copper mining area, there are six toll gates transporters have to pass through from entering the country south at Chirundu heading towards the DRC border at Kasumbalesa via Ndola.
Transist recently said that in addition to the $160 000 Zambia already raised through entry-and-exit tariffs payable by foreign-registered trucks, the new tolls would raise an additional $94 000 a day, Transist has since advised that they are working on having this overturned before implementation.
Zimbabwe misses out on gold rush, gold might have hit an all time high in the recent months but Zimbabwe failed to capitalise on this due to mishaps in their deliveries and subdued performance by the big suppliers as well as the increase in illegal smuggling. Small scale miners produced the bulk of the metal.
Whilst the value of gold delivered to Fidelity Printers, Zimbabwe’s sole gold buyer, was in the region of US$1.3billion, a significant amount of gold was sold through the black market, affecting the countries much needed forex.
Gold mining and deliveries in Zimbabwe have also taken a hit due to concerns amongst the miners who cite it as the motivation to smuggle because of the 55 percent forex retention threshold.
However, there is a slight positive outlook, in its latest report, the World Gold Council believes global dynamics seeded over the past few years will generally be supportive for gold this year.
Caledonia Mining Corporation is considering listing itself on Zimbabwe’s new stock exchange knowns as VFEX which is based in the town of Victoria Falls and will be trading in US Dollars only in a move to allure new international investors and bring in much needed forex to the country.
VFEX is also offering incentives such as including a waiver on capital gains tax. There are also plans to provide political-risk cover. While the Reserve Bank of Zimbabwe will initially provide settlement for trades, Finance Minister Mthuli Ncube wants this task handed to a global lender, and talks are underway with firms in Africa, Asia and Europe.
Zambia government to issue statement on KCM liquidation, the Zambian Government has said that it will issue a comprehensive statement in Parliament regarding the liquidation of Konkola Copper Mines (KCM) after the court process.
Mines and Minerals Development Minister Hon. Richard Musukwa said that the next step will be dependent on the outcome of the court process.
Hon. Musukwa said that the current liquidator is working within the law adding that he is managing the affairs well by paying old and new debtors.
Hon. Musukwa said that Government has a strong case against Vedanta and will consider all legal options and that President Edgar Chagwa Lungu’s priority is to safeguard the plight of workers.
Musukwa also said that there are many investors that are interested in running the mine as soon as the due process of law is completed, adding that the action taken by Government was the only option at that time as it was in the best interest of the people of Zambia.
Threat of terrorism in the region, a growing concern! Following on from the last update, The European Union last week Friday confirmed that it is ready to support Mozambique in its fight against the Islamist insurgents who have been terrorising several districts in the northern province of Cabo Delgado.
The EU’s promise is in response to the request made by the Mozambican government last month, asking for humanitarian aid and logistical support as well as specialist training for the Mozambican defence and security forces.
The conformation came from the EU ambassador to Mozambique, Antonio Sánchez-Benedito Gaspar, who presented a letter from Josep Borrell, the EU’s High Representative for Foreign Affairs and Security Policy, which he delivered to Mozambican Foreign Minister Veronica Macamo.
This past Saturday, The Mozambican defence and security forces announced the arrest of a man accused of recruiting new members for the Islamist terrorist groups operating in the province of Cabo Delgado.
State of disaster extended! South Africa, again has decided to extended the state of disaster by another month which has left a lot of economists and majority of the public quite perplexed, South Africa currently sits at Level 1 of the Lockdown Phase with no word as to when the struggling economy will finally be opened up 100%.
There has been pressure from opposition parties on the ANC to open up the economy and drop the state of disaster but the demands were fruitless, word is that the lockdown could be lifted by December if the current COVID infections remain the same or drop as South Africa currently has a steady 90% recovery rate.
Steel prices continue to rise, major mills within the South African steel industry have again sent out notices over the past two weeks, informing the sector that there will be steel increases for the month of November, this is now the 9th consecutive steel increase in South Africa this year, the Plastics and Rubber industries have also recently increased their prices due to the increase of raw materials as well as increased labour costs.
Please note Further information regarding these increases is available on our web site.
“If you want to go quickly, go alone. If you want to go far, go together”
Border updates, Cross-border transporters and the NGO striving to protect the sub-Saharan interests of long-distance drivers, Transit Assistance Bureau (Transist), are taking a strong stance against an announcement yesterday forcing South African drivers to abide by an SADC Covid-19 protocol.
According to the protocol, decided upon by SADC at the end of July, drivers will have to present laboratory certificates proving they have been tested for the coronavirus.
The certificates, which may not be older than 72 hours and are valid for 14 days, have sparked a fair amount of opposition from private sector logistics concerns, with many transporters complaining of not being consulted by either the SADC or any country officials representing health and transport officials.
When the protocol’s 1 September date arrived, Zambia was the only SADC partner to implement the determination, causing hauliers to ridicule the coronavirus-curbing measure as yet another case of the SADC talking about border harmonisation while practising the opposite.
Botswana indicated earlier that they would still be testing all drivers on entry to their territory, whether they could provide a negative lab certificate or not.
In a shock announcement yesterday, which takes effect as of today, the tax authority said truck drivers would be required to present Covid-19 negative results upon departure from RSA and on arrival.
The statement by a SARS added that all positive truck drivers were to be handled as per the Department of Health Guidelines.
“All other health control measures are also applicable to truck drivers.”
More to come…
Positive news coming from Zimbabwe, there is some positivity in the mining and construction sector within Zimbabwe, this is noted after recent developments came to light.
Zimbabwe is one of the major lithium producers that may draw great benefits from the firm global prices and high demands for the precious mineral due to expected supply deficit projected to start in two years.
Zimbabwe holds extensive deposits of the in-demand mineral which is widely used in the automotive and glass industries, currently Zimbabwe has a single active lithium mine in the country with a number of projects in the pipeline.
The Government classified the commodity as on of the strategic minerals towards achieving its vision of transforming mining into a US$12 billion industry by 2023.
Prospect Resources Plc, an Australian listed company, are the developers of the new Lithium project and expect the mine to enter production by second half 2021.
Following from this, RioZim has signed an agreement for phase two of the Sengwa Coal Plant in Ghokwe North. This plan entails the expansion of the plant capacity to 2800MW increased in 700MW phases.
Lafarge Cement Zimbabwe (Lafarge) is set to complete the installation of a US$2.2 million Dry Mortar Mix (DMX) plant during second half of this year as the cement-maker targets increasing its production capacity.
The project is part of Lafarge Holcim Group’s US$ 25 million recapitalization program.
Zambia mining royalties throws spanner in the works, copper miners in Zambia have halted $2 billion of planned investments because a royalty tax introduced last year makes the projects unviable, according to an industry lobby group.
A plan by First Quantum Minerals Ltd. and Lubambe to invest significant amounts in expansion and new mining operations has come to a grinding halt until this matter is resolved.
Zambia’s uneasy relationship with mining investors has deteriorated over the past 12 months, with the government clashing with Glencore Plc over the company’s plan to mothball Mopani Copper Mines’ operations. KCM’s future also remains unclear.
Threat of terrorism in the region, a growing concern! over the past few months, namely in Mozambique, there has been an influx of insurgents mainly in Cabo Delgado, the result of this has led to more than 50,000 people fleeing their homes from the once most promising district in the country which holds mass amounts of natural gasses and gemstones.
The threat has become such a reality now that neighbouring countries have been mulling the idea of sending aid to help deal with the terrorist organisation, known as Ahlu Sunnah Wa-Jamaa or otherwise locally known as al-Shabaab.
However, its not just the threat of al-Shabaab that has seen the Cabo Delgado province underperforming for decades, locals have said the government has forcibly removed communities from state-owned land after ruby, mining and gas exploration was handed to private companies.
In recent weeks the militants took Mocímboa de Praia, an important border post for travel to and from Tanzania. Government has since battled to regain control the port, SADC has considered sending aid, ranging from intelligence gathering to military support. There is currently an operation led by Mozambican forces accompanied by mercenary groups, however there are accusations being made that this is only intensifying tension within the region.
“When a needle falls into a deep well, many people will look into the well, but few will be ready to go down after it”