steel

Trade Winds bimonthly update volume 32

Another month another increase!  Last month the steel mills within South Africa sent out notice of price increase effective 1 April and unfortunately this is no April Fool’s joke.

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”

Trade Winds bimonthly update volume 31

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”

Trade Winds bimonthly update volume 30

South African steel industry on its knees, with the latest closure from ArcelorMittal, the South African steel industry has taken another knock, this puts further pressure on an already struggling sector where material availability is so scarce, raw material prices are constantly climbing and labour costs are rising, thankfully there was no steel increase at the beginning of the month however production costs have risen adding higher costs to finished products.

The sector is still very optimistic that by mid-year, steel levels will be rising and not just in South Africa but across the world.

Border updates, reports that a broken scanner was responsible for the backlog at the Chirundu Border Post between Zimbabwe and Zambia have been disproved, however the actual reason is that the backlog was because of truck congestion at the Port of Beira in Mozambique due to the new in-transit cargo sealing system creating major teething issues at the port, with transporters claiming earlier this week that up to 2000 trucks were stuck at the port.

Enhanced efforts at the port to clear congestion had resulted in spurts of trucks coming through on the Beira Corridor into Zimbabwe and queueing at Chirundu.

Collaborative efforts to clear Chirundu, however, are already paying off, with waiting time at the crossing being reduced from 48 to 24 hours.

The queue was estimated to be around six kilometres at one stage, it was down to about one kilometre yesterday.

Cross-border carriers within the SADC region received good news over last weekend when notice came from Zambia announcing that its recent decision to ban the transportation of heavy-load cargo at its Livingstone border with Zimbabwe had been temporarily withdrawn.

Had the announcement not been made, heavy-haul trucks travelling north or south would have been prevented from crossing the Vic Falls bridge as of the 1st of March.

Concerns were that it would force shipments heading towards the Copperbelt and the DRC to either make use of the Chirundu border which is further east or that north-south cargo would have to go via Botswana which truckers would then have to make use of the notorious Kazungula ferry crossing which has made the news over the past few months due to broken-down pontoons, subsequent back-ups at the border where in theory roughly 150 trucks should be ferried daily but only about 50 make it across.

With all this being said it is still questioned as to why the newly built Kazangula bridge is not operational.

Potential investors for Zisco, two Chinese steel companies as well as state-owned Tiscoare in premilitary talks about the revival of Zimbabwe Iron and Steel Company.

Zisco (Zimbabwe Iron and Steel Company) was once Africa’s largest steel works, Zisco stopped all operations in 2008 due to lack of funding and mismanagement.

Zisco is currently owned by the Chinese government.

It is also noted that there are another four companies looking at investing in Zisco.

Blanket mine a true survivor, more than a century later, Blanket is still going strong with +1 Moz having been produced over its life from both fresh ore and tailings.

Over the past several years Blanket mine has steadily upped production from around 42 000 oz in 2015 to approximately 54 000 oz in 2019 and have now set their sights on producing around 80 000 ozpa from 2022 onwards.

In order to secure Blanket’s long-term future and to allow the mine to reach the 80 000 ozpa target, Caledonia is currently busy with its Central Shaft project, which is effectively creating a new mine below the current workings. Work on the four-compartment shaft, which extends from surface to 1 200 m underground, started in 2015 and the shaft sinking phase was completed in July 2019.

Work on equipping the shaft started in early January 2020 with the installation of pipes from surface to shaft bottom. The equipping has continued to progress steadily since then but due to travel restrictions caused by COVID-19, the project’s completion originally scheduled for late 2020 could be delayed further.

Remarkably, given that shaft sinking is a highly specialised discipline, Caledonia has carried out much of the work on the Central Shaft project in house moreover, it has funded the shaft itself which has so far cost over US$60 million by relying entirely from internal cash flows.

Caledonia has also raised the required funds to invest in the construction of a solar power plant to supply electricity to the Blanket Mine.

Zambia achieves record copper production, Zambia produced 882,061 tonnes of copper in 2020, up 10.8% from 796,430 tonnes produced in 2019.

Africa’s second largest copper producer aims to produce more than 900,000 tonnes of copper in 2021, and has a long-term goal of exceeding one-million tonnes in annual production.

A worldwide shift to electric cars, which use much more copper than cars using traditional combustion engines, is expected to boost production of the metal.

However, Zambia’s cobalt production fell 21.8% in 2020, to 287 tonnes from the 367 tonnes produced in the previous year. The drop has been blamed on the reduced cobalt mineralisation and operational challenges at Konkola Copper Mine.

Gold production also fell to 3,579 kg in 2020 from 3,913 kg in 2019 as ore grades at the Kansanshi mine declined.

Nickel production more than doubled to 5,712 tonnes in 2020 from 2,500 tonnes in 2019, thanks to the restructuring and streamlining of nickel operations which helped drive production up.

Kamoa-Kakula sets production record, Ivanhoe mines achieved a production record in February at the Kamoa-Kakula Copper Project in the DRC.

The 339,000 tonnes mined and stockpiled in February had an average ore grading of 5.5%, this included 47,300 tonnes grading 4.62% copper from the Kansoko Mine, establishing a new monthly production record at Kansoko.

The overall tonnage also included 107,000 tonnes grading 9.01% copper from the high-grade centre of the Kakula Mine.

Kamoa-Kakula is on track to have more than three million tonnes of high-grade and medium-grade ore stockpiled on surface, holding more than 125,000 tonnes of contained copper, prior to the planned start of processing in July 2021.

Ivanhoe believe the potential for sustained higher copper prices further improves the outstanding economics of the project.

ISS Terrorists strike again, Islamist terrorists have murdered four people in the Quionga administrative post, in Palma district, in the northern Mozambican province of Cabo Delgado.

The attack occurred on Friday night 19 February. In addition to the murders, the raiders looted foodstuffs and burnt down houses, including the residence of the head of the administrative post.

Sources say the same group tried to return the following night but they were driven back because by that time the Mozambican defence and security forces had sent units to Quionga.

“Those who accomplish great things pay attention to the little ones”

Trade Winds bimonthly update volume 29

No steel increase for now… A breather at last for the steel sector in South Africa as so far there are no confirmed increases for the 1st of March, however there is another issue as Eskom, South Africa’s sole electricity producer has just announced a tariff hike in excess of 15%. This is going to shoot labour costs through the roof and in turn have a ripple effect of increases down the line.

The country continues to battle with a steel shortage with no silver lining yet, there has been positive reports over the past few weeks that levels are expected to increase mid-year however currently the country is battling to cope with the local and export demand.

Mid this week there was an explosion at Arcelormittal’s Vanderbijlpark mill where unfortunately three workers lost their lives as part of a stack of coke batteries reaching 90 meters collapsed and fell on the workers.

Notice has come out this morning that due to this incident, production will be affected on thinner gauge material, namely coil from 1.60mm – 4.0mm which in turn effects the production of tube, pipe, sheets, roof sheets and lipped channels. It is also noted that the current steel shortage is most likely to continue until mid-2021 with consecutive steel increases on the books.

Word from our suppliers in China who have returned from their New Year festivities this week, is that Hot Rolled prices continue to increase which will impact on prices around the world.  Some mills have delayed re-opening whilst new prices are prepared, whilst others are insisting on confirming orders first and then agreeing on a price!  There are indeed very uncertain times ahead.

SA opens Beitbridge but Zim lockdown still in place, South Africa may have reopened its biggest land borders on Monday 15 January, but Zimbabwe’s decision to extend its lockdown for another two weeks prohibits travel between the neighbouring countries through the Beitbridge border post.

Beitbridge is a major border post which connects South Africa and Zimbabwe and processes thousands of commuters every single day. It’s normally the busiest land port in Southern Africa, but for more than a month, it’s only serviced cargo and nationals with government-endorsed travel exemptions.

Amid growing concerns of a second wave of Covid-19 infections, Zimbabwe returned to hard lockdown at the start of 2021. This included the closure of all non-essential businesses, a strict curfew and the closure of all land borders with exemptions for returning residents and commercial freight. South Africa, suffering from its own second wave closed off all land borders on 11 January where only returning residents, departing foreign nationals, and commercial cargo could pass through Beitbridge during this period.

On Monday 15 January 2021, South Africa reopened 20 border points of entry for travel, after implementing new regulations to curb congestion. 

THE Reserve Bank of Zimbabwe (RBZ) has hiked its bank policy rate, from 35 to 40 percent, as part of new policy measures announced yesterday to buttress the prevailing economic stability.

This comes as the bank said the economy was poised for strong growth in the short to medium term, amid stable exchange rate and low inflation.

Apart from raising the bank policy rate to 40 percent per annum, the central bank also hiked the medium-term lending rate for productive sectors from 25 to 30 percent per annum.

The Central bank also increased cash withdrawal limits to 2 000 Zimbabwe dollars for individuals and maintained the current limits on mobile banking transactions at 5 000 Zimbabwe dollars per transaction, which has been aggregated to 35 000 Zimbabwe dollars per week.

The apex bank also increased statutory reserves from 2,5 percent to 5 percent for demand and/or call deposits and maintained the rate at 2,5 percent for time deposits. The variation of statutory reserves by maturity is expected to incentivise banks to hold long-term liabilities or time deposits for long-term lending in the medium-term.

“The reserve money target of 22,5 percent is consistent with the targeted end of year inflation of below 10 percent and projected 7,4 percent economic growth rate of the economy,” the governor said.

The African continent on Tuesday carved its own piece of history when Nigeria’s Ngozi Okonjo-Iweala was elected to lead the World Trade Organisation, as its director-general.

She becomes the first woman and the first African to lead this 164-member organisation in the 73 years of the General Agreement on Tariffs and Trade (GATT), which later transformed to the World Trade Organisation.

A former Nigerian finance minister and World Bank veteran, Okonjo-Iweala shrugged off stiff competition from seven other candidates to lead the global trade body, which had gone for seven months without a leader.

Sibanye-Stillwater’s profits soar, the free cash flow of precious metals company Sibanye-Stillwater rocketed to within a hair’s breadth of R20-billion in the second half of last year.

The Johannesburg and New York listed company reported a sky-high profit rise to R29.3-billion for the six months, up from R62-million in the previous year of 2019. Despite Covid-19, the group delivered a record financial performance and made notable progress towards delivery on many strategic targets.

The company is set to gain a R6.8 billion investment which is expected to create around 7,000 much needed jobs for South Africa.

Tanzania’s gold sector ready for giant leap, construction of gold refining machinery worth 8.9 billion in Mwanza with a capacity to process over 480 kilogrammes per day and can be extended to 960 Kgs per day is complete.

Mwanza Precious Metals Refinery Ltd., which is a joint venture of State Mining Corporation (STAMICO), Dubai-based Rozella Genera Trading LLC and ACME Consultant Engineers PTE Ltd. of Singapore, will be one of the best state-of-the-art gold refineries.

STAMICO Acting Managing Director Dr Venance Mwasse told Minister for Minerals Mr Dotto Biteko on Monday that the refinery plant, the first among three gold refineries currently under construction in the country, was set to be in operation the following month.

The plant ranks number 3 in Africa in terms of processing capacity.

The mineral will be processed there, meaning that no exportation of raw minerals. It will increase the country’s revenue and create over 120 direct employments to Tanzanians.

The project cost of US$58 million, which covered investment, running cost and purchase of gold for the initial ten-days when the refinery starts. Construction started in March 2020.

Vedanta warns off asset pickers, Vedanta Resources has warned potential buyers of assets held in its 85%-owned KCM that any corporate activity would be deemed inappropriate and that it would seek to protect its interests in Zambia and internationally. The Indian owned firm’s comments come as the provisional liquidator appointed by the Zambian government, progresses a plan to split the assets which consists of mining and processing facilities ahead of selling them to third parties.

The Zambian government has through its ZCCM-Investments Holdings company which holds a 15% stake in KCM, has forbidden Vedanta access to KCM’s assets arguing that the group failed to meet investment promises.

Vedanta has contested the matter in the Zambian and South African courts.

As gold prices soared, Barrick counted profits, Mining giants Barrick Gold reported a quarterly profit on Thursday that beat the analysts’ estimates, aided by the jump in gold prices due to coronavirus-induced economic uncertainty. The company’s US-listed shares were up 2.4%.

Gold prices touched record highs in 2020, as investors flocked to what is known as the safe-haven asset while the Covid-19 pandemic mauled the global economy.

In the fourth quarter, market prices averaged $1 875/oz, a staggering 26.4% higher than a year earlier. Barrick said its all-in sustaining costs for the reported quarter rose to $929/oz from $923/oz last year.

For 2021, the company expects the sustaining costs to be between $970/oz and $1 020/oz, compared with $967 in the previous year and they are anticipating full-year production to be between 4.4-million and 4.7-million ounces, compared with 4.8-million ounces produced in the previous year.

The miner also expects a jump copper production this year to be in the region of 410 to 460-million pounds this year as compared with production of 457-million pounds last year.

“A person with too much ambition cannot sleep in peace”

Trade Winds bimonthly update volume 28

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”

Trade Winds bimonthly update volume 27

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”

Steel Price Increase Notice

Dear Valued Customer,

Please click on the following link for the latest Steel Price Increase Notice.

Kind Regards,

Ropa Mhlanga
Operations Director – Southern African Region

Trade Winds bimonthly update volume 24

Steel shortages continue!  South Africa’s steel woes continue with a bleak output on the horizon, capacity is at an all-time low with manufacturers and stockists battling to deliver and the continuous steel increases further damaging the sector.

The Steel Giants have put out notice of restructuring at its Newcastle facility expected to result in significant job losses of around 2,500 workers.

On a positive note, furnaces at Mittal’s two plants in South Africa are on schedule to be fired up early 2021.

Joining the band wagon, South Africa is imposing export taxes to either collect more revenue or modify the flow of goods across borders.

The Customs and Excise Duty Act has been amended to allow the minister of finance to impose an export duty whenever he sees it beneficial in the public interest. The amendment is expected to be effective March next year.

South Africa will also be introducing an export tax on scrap metal. There’s been talk about a 30% export tax on chrome and further export duties on iron ore as well as leather and maize. No implementation dates have been announced.

The export tax on Chrome has come as a shock and many of the domestic producers have frowned upon this and fear that this will backfire on the country.

Border updates, Beitbridge border post is now business as usual, little to no delays are being experienced currently.

Congestion at the crucial Chirundu Border Post between Zimbabwe and Zambia has been cleared following the bottlenecking of trucks on the northbound journey into the Copperbelt. The intermittent spike in volumes crossing the Zambezi at Chirundu was due to increased cargo coming through from the Port of Beira in Mozambique.

It was noted that the commodity coming from Mozambique was fuel. This was a result of the Zambian government deciding to issue a statutory instrument which ordered that 50% of freight in Zambia be reserved for local transporters, the country had found itself running short of essential cargo like fuel.

The Zambian government then set aside a three-week period that would allow other transporters to deliver fuel as the Petroleum Transporters Association of Zambia couldn’t keep up with volume requirements which in turn triggered a spike in cargo from the landlocked nation’s closest neighbouring port, Beira.

As cross-border road hauliers wait to hear from Zambia’s and Botswana’s transport authorities about when the completed Kazaungula bridge across the Zambezi will open, another truck has slipped off the pontoon into the mighty river’s depths.

It’s the second rig that has rolled off a ferry at the important crossing which is still served by three pontoons while the bridge, already finished in September, sits unused in the background.

It remains anyone’s guess as to why there’s such a holdup to open the bridge.

Trucker violence surges! on the night of 20th November 2020, 10 trucks were attacked and torched on the N3 in South Africa, this attack marks the single biggest attack on the country’s main supply route between Gauteng and the Port of Durban. Just a few days later another truck was attacked and earlier this week a truck driver was shot and burnt to death in his cabin, throughout the week there has been various attacks on trucks with the latest one coming just last night where a driver was shot at from both sides of his vehicle but luckily managed to flea just in time before his truck was torched.

The attacks are allegedly backed by the All Truck Driver Foundation (ATDF), a vigilante group opposed to foreign national truck drivers working in South Africa’s transport sector. ATDF has said that the attacks on transporters stem from employers in the sector allegedly favouring foreign nationals because they are paid less and are exploitable because many don’t hold valid work permits.

Earlier in the year ATDF threatened to embark on a strike that would cut off the Durban to Beitbridge corridor, however there was a court interdict and the protest never took place.

The Cross-Border Road Transport Agency (CBRTA) has added its voice to pleas that transporters consider not working at night, thereby hopefully diminishing the life-threatening situation in which truck drivers find themselves as the violence targeting South Africa’s freight industry drags into its sixth day.

Ducking and diving, Deputy Gauteng Police Commissioner, Major General Daniel Mthombeni, circumvented the issue as industry stakeholders demanded concrete action to address the growing insurrection in the road freight industry.

He told attendees at a meeting held in Alberton yesterday that arrests had been made earlier this week and called for the establishment of a forum. Members of the industry however made it clear that a few arrests were not enough.

Transport and security companies said that they were aware of the ‘hot spots’ and asked why police visibility in these high-risk areas was still so poor and why there weren’t any functioning cameras on major highways.

A security company representative said on many occasions he would call the police to ask if certain routes were safe but even the police were unsure most of time.

Great Dyke making progress, Great Dyke Investments who has been pinned as Zimbabwe’s next platinum giant is ahead of schedule in boosting Zimbabwe’s platinum exports by 2022. According to the mine’s chief operations officer, Mr. Munashe Shava, extraction which commenced earlier this year will tally with the company’s projections of exports by 2022.

The Great Dyke Investments mine in Darwendale which follows Zimplats and Unki mines and is one of the new investments is expected to help the country reach a US$12 billion mining industry by 2023.

GDI is 50 percent owned by Russia’s Vi Holding, and 50 percent owned by Zimbabwe’s Landela Mining Venture. The project has an excess of 180 million tonnes of ore containing 17 million ounces of platinum group metals and gold, with an average grade of 2,93 grammes per tonne.

The mine expects to start contributing to the country’s gross domestic product by 2022 although it has already contributed to the country’s fight against the Covid-19 where it supplied local health institutions with machinery and PPE.

DRC to formalise Artisanal Mining? EGC and Trafigura signed an offtake agreement in a bid to formalise artisanal and small-scale cobalt mining in the Democratic Republic of Congo.

The trading agreement includes the provision of finance by Trafigura to fund the creation of strict, controlled artisanal mining zones, installation of ore purchasing stations as well as the costs related to the transparent and traceable delivery of cobalt hydroxide to Trafigura on an export cleared basis.

Under the supply terms, EGC will ensure that the ore marketed by Trafigura complies with OECD Due Diligence Guidance.

Earlier in the year Glencore made a U-Turn and also decided to back artisanal mining of cobalt. The group aims to end child labour in the cobalt mining sector and to improve the working conditions in Congo.

Almost three quarters of the world’s cobalt comes from Congo where Glencore owns two of the largest mines. Demand in cobalt is expected to surge in the coming years as the sales of electric-vehicles are said to take off.

Zambia’s copper output increases, Zambia who is Africa’s second-largest copper miner, produced 646,111 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year.

The Southern African nation now expects total production for the year to reach 820,000 tonnes, driven by rising copper prices.Bottom of Form

This comes as good news to Zambia, who is the first African country to default on a bond payment during the covid-19 pandemic by missing a $42.5 million interest payment on part of its international debt.

Zambia’s mining sector has been in the spotlight as the country’s financial situation deteriorated this year which prompted Glencore to shut its Mopani Copper Mines operation.

With that being said, the Zambian government has advised that negotiations with Glencore regarding increasing the government’s stake in Mopani were nearing a conclusion. No information has been given out about the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire was given.

Tanzania to join in fighting terrorism!  Tanzania’s government says is teaming up with Mozambique to launch a joint operation against violent attacks by Islamist militants along their shared border.

Several recent attacks blamed on Islamist extremists have targeted the border village of Ktaya in Tanzania’s Mtwara region. 

Police say more than 175 houses were set on fire and some people were killed by assailants, who, authorities say, fled into neighbouring Mozambique. 

Tanzania has already increased security along the border and it is now joining forces with Mozambique to contain what it calls terrorists. 

Some opposition parties and rights groups are raising concerns about how the Tanzanian government plans to tackle the threat.

Tanzania becomes the 4th country that has pledged their allegiance in fighting the terrorist scourge, Britain, Zimbabwe and South Africa have voiced their aid however we are not seeing any troops headed to Mozambique.

Some Zimbabwean citizens are concerned about soldiers going into Mozambique, fearing that, that would encourage terrorists to infiltrate their country.



 “For tomorrow belongs to the people who prepare for it today”

Trade Winds bimonthly update volume 22

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”

Trade Winds bimonthly update volume 21

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”