maxresdefault

Rwanda 2024 Investment Outlook: Focus On Priority Sectors

Invest Rwanda: Kigali Economic Forum

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="815" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1-815x800.jpg" alt="" class="wp-image-428263" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1-815x800.jpg 815w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1-300x295.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1-92x90.jpg 92w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1-768x754.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1.jpg 1280w" sizes="(max-width: 815px) 100vw, 815px" /><figcaption class="wp-element-caption">Sudipto Moitra, General Manager &#8211; MTN SA Enterprise Business</figcaption></figure>



Mining in Africa presents numerous challenges, and quite simply, the chances of prospering are limited without the ability to communicate and use cutting-edge technology effectively.



To some extent, the growth of digital communications has filled the gap, but operating over a public network has imposed some limitations. However, these constraints are receding as more mines opt for 5G private networks, which are rapidly changing the face of a demanding sector by offering access to data transfer speeds up to 10x faster than previous standards.



Private networks empower users to utilise dedicated equipment and configurations in their networks as they run separately from public networks and can be deployed within a customer’s premises or in specified geographical areas, offering a dedicated and isolated network environment.



Amongst the benefits of private networks is exclusive capacity, as there is no competition for space from other network users. The high data speeds translate into quicker downloads and uploads of large files and data sets, real-time site monitoring by video and large-scale data transfers. Notably, the problems associated with working in rural areas and having spotty or weak indoor coverage are eliminated.



5G private networks are helping miners maintain high levels of safety, coordinate activities across vast working areas, and respond to emergencies. Reliable, low latency 5G private networks reach across mines, bringing real-time voice and data transmission to the fore.



Additionally, miners can control autonomous vehicles, drills, and other machinery from a central location. Marrying communication and tech results in optimised production, reduced downtime, and lower operational costs.



Presently, intelligent mining tech is reducing the need for people to enter hazardous areas. Remote-controlled equipment with cameras survey areas before miners enter, while computer vision, artificial intelligence, drones, and robots perform site inspections to reduce hazards for mining personnel. On the personal safety front, wearable devices connected to 5G private networks are tracking the health and locations of miners in real-time.



With the help of 5G private networks, more mining operations are becoming automated. Automated vehicles and robots are used for drilling, transportation, and handling materials. Other automated equipment is resulting in predefined, repetitive tasks becoming autonomous as well as achieving more complex tasks through remote controlled machinery.&nbsp;



High-speed data transfer allows for more efficient geological surveying of mining sites, with drones and sensors collecting geological data which can be quickly analysed to identify valuable resources and plan the extraction of ores. A by-product of these developments is better energy management and lower environmental footprints.



5G private network users are effectively managing supply chains by utilising ‘just in time’ (JIT) techniques to ensure that the correct materials and equipment are available when needed. The benefits are reduced production delays and improved efficiency. Savings, through reducing the cost of holding excess stock in storage facilities are also achieved.



There is no doubt that growing awareness about environmental, social and governance (ESG) issues is making mines more concerned about ‘greening’ their operations, reducing waste, and limiting their water and energy use. Technology is, therefore, being harnessed to help improve the use of natural resources, promote sustainability, and reduce the production of harmful gases.



At MTN, we believe that 5G private networks will play a pivotal role in transforming industry, mining, and commerce because of its capabilities. As the use of Internet of Things (IOT) devices and sensors increases, predictions are that data transmission will grow exponentially.



We are living in a brave, new technological world, and at its core are the networks that enable our communications.

GM-for-ICT-MTN-Business-Sudipto-Moitra-1-1

Transforming mining in Africa: 5G Private Networks and cutting-edge tech revolutionise the industry’s future

May 31 (Reuters)&nbsp;&#8211;&nbsp;South African miner Gold Fields Ltd&nbsp;GFIJ.J&nbsp;on Tuesday agreed to buy Canada-based precious metals miner Yamana Gold Inc&nbsp;YRI.TO&nbsp;in an all-share deal, valuing the Toronto-listed company at $6.7 billion.



Gold Fields said its shareholders will own about 61% of the combined group, while Yamana Gold shareholders will own around 39% after the deal completes.



The South African miner said Yamana&#8217;s board has unanimously approved the deal and also recommended its shareholders to vote in favour of the offer.



The offer consists of new shares or newly issued American Depositary Shares in Gold Fields at a fixed exchange ratio of 0.6 of a Gold Fields share for each Yamana share outstanding.



Shares of Yamana will be delisted from the stock markets, while Gold Fields will continue trading in Johannesburg, where the combined group will have their headquarters.



(Reporting by Amna Karimi and Yadarisa Shabong in Bengaluru; Editing by Uttaresh.V and Sherry Jacob-Phillips)

P5SMH45ZXZISHHJMFTO3TFOVFQ

S.Africa’s Gold Fields to buy Yamana Gold in $6.7 bln deal

Glencore agrees settlements in U.S., Brazil



Glencore Energy (UK) charged with bribery over oil operations



U.S. prosecutor calls bribery scheme &#8220;staggering&#8221;



Updates with details from U.S. settlement with Glencore, adds comments from prosecutors in Brazil



By Clara Denina, Kirstin Ridley and Sarah N. Lynch



LONDON/WASHINGTON May 24 (Reuters)&nbsp;&#8211;&nbsp;Glencore Plc&nbsp;GLEN.L&nbsp;said on Tuesday it anticipates paying up to $1.5 billion to settle accusations of bribery and market manipulation, as authorities in the United States, Britain and Brazil announced that three of the company&#8217;s subsidiaries were pleading guilty to crimes.



The miner and commodity trading giant agreed to pay more than $1 billion in the United States and Brazil, with Glencore representatives also appearing in courts in the United States and Britain on Tuesday.



U.S. Attorney General Merrick Garland said a $1.1 billion accord with the U.S. will resolve both a decade-long scheme to bribe foreign officials across seven countries and separate criminal and civil charges alleging one of the company&#8217;s trading arms manipulated fuel oil prices at two of the largest U.S. shipping ports.



&#8220;This represents the Justice Department&#8217;s largest criminal enforcement action to date for a commodity price manipulation conspiracy in oil markets,&#8221; Garland said at a press conference.



&#8220;We will continue to investigate, disrupt and hold accountable corporations that break our laws.&#8221;



The company said it expects a final global settlement, including a future fine in Britain, not to exceed the $1.5 billion it set aside in its reserves in February to resolve the probes relating to operations in the Democratic Republic of Congo, Nigeria and Venezuela.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2UQ1V7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;Glencore has resolved the previously disclosed investigations by authorities in the United States, the United Kingdom and Brazil into past activities in certain Group businesses related to bribery,&#8221; it said in a statement.



Any final resolution would wrap up a multi-year U.S. and British investigation that has dogged the Swiss-based multinational, which still faces corruption and bribery investigations by other countries including Swiss and Dutch authorities.



In Brazil on Tuesday, prosecutors said Glencore will pay $29.6 million directly to state-run oil company Petrobras&nbsp;PETR4.SA&nbsp;in compensation for defrauding the company and roughly $10 million to authorities in civil penalties.



The UK Serious Fraud Office (SFO), which opened a corruption investigation in 2019 code-named Operation Azoth, said on Tuesday it had exposed &#8220;profit-driven bribery and corruption&#8221; across oil operations in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan.



Glencore Energy (UK) Ltd, which said Tuesday it would plead guilty to all the charges at a hearing at London&#8217;s Westminster Magistrates&#8217; Court, will be sentenced on June 21.



The SFO alleged that Glencore agents and employees paid bribes worth over $25 million for preferential access to oil, with approval by the company.



Damian Williams, the top federal prosecutor in Manhattan, called the bribery scheme &#8220;staggering.&#8221;



&#8220;Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore paid bribes to judges to make lawsuits disappear,&#8221; he said.



As part of the resolution with the United States, Glencore is also required to hire two separate independent compliance monitors.



In March 2021, former Glencore oil trader Emilio Jose Heredia Collado pleaded guilty in San Francisco, California, to manipulating a key oil price benchmark, while former Glencore trader Anthony Stimler pleaded guilty in New York in July 2021 over his role in a scheme to bribe Nigerian officials.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2LN22R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL1N2P22GL&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



However, none of the company&#8217;s top executives have faced charges to date. U.S. Justice Department officials told reporters on Tuesday their investigations remain ongoing.



Spotlight on Corruption, a public interest group, welcomed the charges on Tuesday, but said it was &#8220;essential that those responsible for the wrongdoing, including senior executives and the parent company, are held to account.&#8221;



(Reporting by Kirstin Ridley and Clara Denina in London and Sarah N. Lynch in Washington. Additional reporting by Tyler Clifford in Washington, Jonathan Stempel in New York, Gram Slattery in Rio de Janeiro and Yadarisa Shabong in Bengaluru; Editing by Maju Samuel, Paul Simao, David Gregorio and Richard Pullin)



<a href="https://www.reutersconnect.com/all?categories=BUS_SPO_NEWS&amp;id=tag%3Areuters.com%2C2022%3Anewsml_L3N2XG2NU%3A167155577&amp;languages=ENG&amp;media-types=T&amp;regions=AFR&amp;sources=RTRS#"></a><a href="mailto:?body=Janet.Maloka%40abn360.com%20shared%20a%20story%20with%20you%20on%20Reuters%20Connect.%0A%0A%0AUPDATE%204-Glencore%20prepares%20to%20pay%20up%20to%20%241.5%20bln%20to%20settle%20U.S.%2C%20UK%2C%20Brazil%20probes%0A%0A%0Ahttps%3A%2F%2Fwww.reutersconnect.com%2Fall%3Fid%3Dtag%253Areuters.com%252C2022%253Anewsml_L3N2XG2NU%26share%3Dtrue%0A%0A-----------------%0A%0AIf%20you%20are%20unable%20to%20see%20the%20news%20item%20or%20receive%20an%20error%2C%20be%20sure%20that%20the%20appropriate%20feeds%20are%20selected%20in%20your%20account%20settings%3Ahttps%3A%2F%2Fwww.reutersconnect.com%2Fsettings%0A&amp;subject=Reuters%20Story%3A%20UPDATE%204-Glencore%20prepares%20to%20pay%20up%20to%20%241.5%20bln%20to%20settle%20U.S.%2C%20UK%2C%20Brazil%20probes"></a><a href="https://www.reutersconnect.com/all?categories=BUS_SPO_NEWS&amp;id=tag%3Areuters.com%2C2022%3Anewsml_L3N2XG2NU%3A167155577&amp;languages=ENG&amp;media-types=T&amp;regions=AFR&amp;sources=RTRS#"></a><a href="https://www.reutersconnect.com/all?categories=BUS_SPO_NEWS&amp;id=tag%3Areuters.com%2C2022%3Anewsml_L3N2XG2NU%3A167155577&amp;languages=ENG&amp;media-types=T&amp;regions=AFR&amp;sources=RTRS#"></a>

File: Glencore Plunges After U.S. Subpoena Regarding Money Laundering

Glencore prepares to pay up to $1.5 bln to settle U.S., UK, Brazil probes

LONDON, May 16 (Reuters)&nbsp;&#8211;&nbsp;Improving demand and lower supply will help palladium and rhodium swing back into deficit this year and reduce platinum&#8217;s surplus, consultants Metals Focus said on Monday.



The three precious metals are used by automakers in engine exhaust systems, where they neutralise harmful emissions. Platinum is also used in other industries and for jewellery and investment.



Demand from auto makers, which are beginning to overcome a shortage of semiconductors that forced them to cut production, will lift demand for all three metals, Metals Focus said.



On the supply side, palladium and platinum production could be constrained by major producer Russia&#8217;s conflict with Ukraine, while output from another key producer, South Africa, will fall, it said.



Logistical issues and limited automotive scrap feedstock will also impede supply from recycling.



Metals Focus said the roughly 10 million ounce a year palladium market should swing back from its first surplus in 10 years in 2021 to a deficit of 521,000 ounces in 2022 and that prices would average $2,290 an ounce this year.



Palladium&nbsp;XPD=&nbsp;jumped to a record high of $3,440.76 an ounce earlier this year and now costs around $1,930 an ounce.



The surplus in the nearly eight million ounce a year platinum market&nbsp;XPT=&nbsp;is expected be 40% lower than in 2021 at 477,000 ounces this year, while prices will average $990 an ounce, Metals Focus said.



It predicted a deficit of 30,000 ounces in 2022 in the one-million-ounce rhodium market, included in the Metals Focus report for the first time.



Rhodium&#8217;s annual average price&nbsp;RHOD-LON&nbsp;will fall 17% from last year to $17,750 an ounce in 2022, the report said. Rhodium currently trades around $15,600.



(Reporting by Zandi Shabalala; editing by David Evans)

14831517782_a39f0228a9_o

Palladium to swing back into deficit, platinum surplus to fall

Anglo American&nbsp;plc (“Anglo American”) today unveils a prototype of the world’s largest hydrogen-powered mine haul truck designed to operate in everyday mining conditions at its Mogalakwena PGMs mine in Limpopo, South Africa.



The 2MW hydrogen-battery hybrid truck, generating more power than its diesel predecessor and capable of carrying a 290-tonne payload, is part of Anglo American’s nuGen™ Zero Emission Haulage Solution (ZEHS). nuGen™ provides an end-to-end integrated green hydrogen production, fuelling and haulage system, with green hydrogen to be produced at the mine site.



nuGen™ is part of Anglo American’s&nbsp;innovation-led approach to sustainable mining – FutureSmart Mining™ – which brings together technology and digitalisation to drive targeted sustainability outcomes, including our commitment to carbon-neutrality across our operations by 2040.



Duncan Wanblad, Chief Executive of Anglo American, said: “nuGen™ is a tangible demonstration of our FutureSmart Mining™ programme changing the future of our industry. With diesel emissions from our haul truck fleet accounting for c.10-15% of our total Scope 1 emissions, this is a vital step on our pathway to carbon neutral operations by 2040. The mining industry is playing a considerable role in helping the world decarbonise, both through our own emissions footprint and the metals and minerals that we produce that are critical to low carbon energy and transport systems.



“Over the next several years, we envisage hundreds of our diesel-powered trucks being converted or replaced with this zero-emission haulage system, fuelled with green hydrogen. If this pilot is successful, we could remove up to 80% of diesel emissions at our open pit mines by rolling this technology across our global fleet.”&nbsp;



Tony O’Neill,&nbsp;Technical Director&nbsp;of Anglo American,&nbsp;commented: “We&nbsp;are incredibly proud of what our entire team, working with expert partners, has achieved in under three years.&nbsp;This is truly a world-class innovation and bears testament to our technical vision and determination to deliver a cleaner and smarter future for mining.



“It is these game-changing innovations that are exactly why we began our FutureSmart Mining™ journey in 2014, knowing how much of a difference we can make, including in the energy transition and across our societal footprint. Innovative, clean and independent power systems, such as our nuGen™ ZEHS project, offer a significant part of the emissions solution.”

Anglo American hydrogen-powered mine haul truck

Edit1.00_20_09_39.Still021

Anglo American unveils a prototype of the world’s largest hydrogen-powered mine haul truck – a vital step towards reducing carbon emissions over time

JOHANNESBURG, May 8 (Reuters)&nbsp;&#8211;&nbsp;The need to secure new sources of metals for the energy transition amid sanctions on top producer Russia has increased the Africa risk appetite for major miners, who have few alternatives to the resource-rich continent.



Companies and investors are considering projects they may have previously overlooked, while governments are also looking to Africa, anxious to ensure their countries can procure enough metals to feed an accelerating net-zero push.



This year&#8217;s Investing in African Mining Indaba conference, which runs May 9-12 in Cape Town, will see the highest-ranking U.S. government official in years attending, organisers say, as well as representatives from the Japan Oil, Gas and Metals Corporation (JOGMEC), in a sign of rich countries&#8217; rising concern about securing supply.



&#8220;The reality is that the resources the world wants are typically located in difficult places,&#8221; said Steven Fox, executive chairman of New York-based political risk consultancy Veracity Worldwide.



The U.S. administration wants to position itself as a strong supporter of battery metals projects in sub-Saharan Africa, he said.



&#8220;While Africa presents its challenges, those challenges are no more difficult than the corresponding set of challenges in Canada. It may be easier to actually bring a project to fruition in Africa, than in a place like Canada or the U.S.,&#8221; he added.



The United States has voiced support for new domestic mines, but projects have stalled. Rio Tinto&#8217;s&nbsp;RIO.AX&nbsp;Resolution copper project, for example, was halted over Native American claims on the land, and conservation issues.



Certainly, the risks of mining in sub-Saharan Africa remain high. The acute security challenge facing mines in the gold-rich Sahel region was highlighted last month when Russia&#8217;s Nordgold abandoned its Taparko gold mine in Burkina Faso over an increasing threat from militants.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W93TK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



And even in the continent&#8217;s most industrialised economy, South Africa, deteriorating rail infrastructure is forcing some coal producers to resort to trucking their product to ports.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WK5KH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Yet with Russia&#8217;s 7% of global nickel supply, 10% of the world&#8217;s platinum, and 25-30% of the world&#8217;s palladium off the table, Africa&#8217;s rich deposits of those metals start looking a lot more attractive.



&#8220;As a mining company, there aren&#8217;t many opportunities and if you are going to grow, you&#8217;re going to have to look at riskier countries,&#8221; said George Cheveley, portfolio manager at Ninety One.



&#8220;Clearly, after Russia-Ukraine people are more sensitive to geopolitical risk and you cannot predict which projects are going to work out and which are not,&#8221; he added.



Kabanga Nickel, a project in Tanzania, secured funding from global miner BHP&nbsp;BHP.AX&nbsp;in January, and CEO Chris Showalter said it is seeing increased demand from potential offtakers.



Western sanctions on Russia over its invasion of Ukraine are forcing metals supply chains to reconfigure along geopolitical lines, Showalter said.



&#8220;Not everyone&#8217;s going to be able to get clean battery metals from a friendly jurisdiction, so I think some difficult decisions will have to be made, and it is going to force people to make some new decisions about where they want to source.&#8221;



(Reporting by Helen Reid in Johannesburg and Clara Denina in London; Editing by Amran Abocar and Susan Fenton)

open-pit-mining-3559203_960_720

Global scramble for metals thrusts Africa into mining spotlight

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Have you ever wondered what mining would look like in the next few years? Well ABB South Africa seems to believe that automation has potential to reduce operating costs and somehow not cause job loses. John Manuell, Local Division Manager for Process Industries at ABB SA joins CNBC Africa for more.

ABB South Africa: Increased automation in mining won’t lead to job losses

ABB South Africa: Increased automation in mining won’t lead to job losses, here’s why

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
South Africa&#8217;s mining production for has April increased by 116.5per cent year-on-year. This comes as the country increased by an annualized 4.6per cent in the first quarter of this year and business confidence also on the up. Henk Langenhoven, Chief Economist at Chamber of Mines joins CNBC Africa for more.

SA mining production up 116.5% y/y

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers and does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.

Energy Capital &#038; Power (www.EnergyCapitalPower.com) – Africa’s leading energy event organizer – has reaffirmed its commitment to hosting events in Africa, as some organizers relocate overseas; Africa Energy &#038; Mining 2022 Conference &#038; Exhibition will be held in Cape Town on March 29-31, with an in-person and online Africa Energy &#038; Mining seminar to be held in Cape Town in November 2021 to set the agenda; The Africa Energy &#038; Mining series will explore emerging synergies between mining and energy in a post-COVID-19 environment, with a view to facilitating a continent-wide energy transition.

nergy Capital &#038; Power (ECP) is doubling down on its commitment to an Africa-focused 2021/2022 events calendar – citing the role of local capacity-building and investor engagement in enabling an African energy transition – ahead of its Africa Energy &#038; Mining (AEM) Conference &#038; Exhibition in Cape Town next March and an AEM online and in-person seminar and networking event in Cape Town in November.
As the energy sector faces systemic change, the success of the African continent in navigating a clean energy transition rests on its ability to mobilize domestic resources, establish local and regional value chains and chart its own path. This has led the event organizer to renew its pledge to building networking and deal-making opportunities on the ground, as well as restructure its flagship pan-African energy conference earlier this year into a more integrated and inclusive program. 
Under the theme, “Investing in the World’s Future Energy Value Chain,” AEM 2022 will unite the entire mining and energy value chain, exploring the role that renewables play in advancing Africa’s mining sector, as well as the value of mining in facilitating a continent-wide energy transition. While the events in November and March represent a continuation of ECP’s Cape Town conference series, AEM has expanded the scope to include investment opportunities across oil and gas, mining, power and renewables, along with emerging industry segments such as energy storage and hydrogen.
“Our unwavering commitment to the continent means that a pan-African energy event must take place in Africa,” says Kelly-Ann Mealia, Chairperson of ECP. “We support South Africa’s economic recovery and believe in positioning African innovation and resources at the heart of the energy transition. There is no better place to do this than Cape Town. We are continuing to invest in Africa’s future through our events, which unite leading industry players and decision-makers from across the continent. Unlike other event organizers, we are committed to working with the African public and private sectors to drive progress from within our key markets.”
“In recent weeks, we have seen promising signs from our government signaling expedited vaccine rollouts, streamlined safety protocols and a forthcoming return to professional events,” says Liam Beattie, Managing Director of HOTT3D, ECP’s exhibition partner. “With the support of the private sector and event industry associations such as the South African Events Council (SACIA), South Africa can declare itself reopen for business and compete with global venues in organizing professional, international events safely. In driving a post-COVID-19 recovery, now is the time to double down on – not withdraw from – the continent and enable the growth and survival of its events industry.”
The AEM event in November will gather southern African and pan-African delegates to set key agenda points, including but not limited to, energy storage, battery metals, and the future of African mining; the role of natural gas in Africa’s economies and new petroleum exploration; Africa as a global LNG leader; the future of African power grids and utilities; funding for gas-to-power projects; independent power producers, privatized power and Africa-wide electrification; the hydrogen revolution; and electric vehicles.
 Distributed by APO Group on behalf of Energy Capital &#038; Power.
To learn more about the Africa Energy &#038; Mining series and the post-COVID-19 energy and mining landscape in Africa, please visit www.EnergyCapitalPower.com. For sponsorship or exhibition opportunities, please contact sales@energycapitalpower.com.
Media files

Energy Capital & Power stands by African Energy Events ahead of Africa Energy & Mining Conference

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
The Democratic Republic of Congo holds around 70 per cent of the world’s reserves of cobalt and is also the largest producer, accounting for over 70 per cent of cobalt mine supply in 2020. More than 70 per cent of the world’s cobalt is produced in DRC, and 15 to 30 per cent is produced by artisanal and small-scale mining. Yves Kabongo, Managing Partner at KBG Capacity joins CNBC Africa for more.

Digging deeper into the state of cobalt mining in the DRC

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6189072720001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Yesterday’s South Africa’s GDP data for the second quarter revealed that The mining and quarrying industry decreased by 73.1 per cent as the demand for mineral products fell as global markets entered into strict COVID-19 lock-downs; contributing to decreased production in platinum , gold and other metals. However we are seeing a glimpse of recovery for South African miners as they are posting above average results and production increases. Peter Major, Mining Director at Mergence Corporate Solutions joins CNBC Africa for more.

Peter Major: Here’s what government should do to help boost SA’s gold production

JOHANNESBURG/LONDON (Reuters) &#8211; Glencore will likely sell its entire 73.1% stake in Zambia’s Mopani Copper Mines to the government’s mining investment arm ZCCM-IH rather than becoming a minority stakeholder, two sources with direct knowledge told Reuters.



Zambia and Swiss-based Glencore are at “cross purposes” over Mopani, Zambian Mines Minister Richard Musukwa had said on Tuesday when he announced ZCCM-IH aims to increase its shareholding in Mopani to 51% “or even more”, from 10% currently.



Glencore’s plans to put Mopani on care and maintenance prompted the Zambian government to threaten in April to revoke the firm’s mining licences.



Two sources with direct knowledge of the negotiations said Glencore is looking to exit the asset entirely.



“As of now, we are discussing a potential sale of their stake in Mopani,” said one of the sources.



A Glencore spokesman declined to comment. First Quantum, which owns 16.9% of Mopani, did not respond to a request for comment.



The move by ZCCM-IH to take control of Mopani is part of its strategy shift away from minority stakes and towards running mines as an operator.



Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables.



Mopani’s total liabilities exceeded its total assets by $2.562 billion in 2019, the company reported in a financial statement, indicating “a material uncertainty in relation to the going concern assumption”.



Mopani produced 51,275 tonnes of finished copper in 2019 including purchased materials &#8211; accounting for 13.9% of Glencore’s African copper output and 3.7% of its overall copper output.



Glencore, which reported a first-half loss due to the impact of the pandemic, will not reap the benefits of billions spent on expansion projects over the last three years if it sells to ZCCM-IH but investors see this as a way for the miner to cut its losses.



“Mopani has been a big headache for Glencore, the mine has never delivered anything for shareholders,” a Glencore shareholder, who asked not to be identified, said, citing numerous accidents and operational issues.



<h3 class="wp-block-heading">CASH CONSTRAINTS</h3>



A major hurdle to clinching the deal is Zambia’s lack of funds to pay for the stake and fund the mine’s running costs, sources say.



Glencore’s stake in Mopani is worth $514.6 million, according to its own valuation. Mopani’s 2019 financial statement shows operating expenses of $931 million.



Zambia’s total foreign exchange reserves stood at $1.43 billion at the end of June, equivalent to just 2.3 months of import cover, according to the central bank.



ZCCM-IH’s cash and term deposits together amounted to 828.9 million Zambian kwacha ($43 million) by March 31 2019, according to the latest financial statements on its website.



A ZCCM-IH spokeswoman did not reply to Reuters’ questions about how it would finance the stake purchase.



“The state’s cash constraints point to an amicable solution,” said Eric Humphery-Smith, Africa analyst at global risk advisory firm Verisk Maplecroft.



“The government may have threatened expropriation in the past, but the need for copper revenues likely precludes that option.”&nbsp;&nbsp;

shutterstock_318371045

Exclusive: Glencore puts entire stake in Mopani on the table in talks with Zambia: sources

LUSAKA/JOHANNESBURG (Reuters) &#8211; Zambia’s mining investment arm ZCCM-IH is seeking a controlling stake in Glencore subsidiary Mopani Copper Mines, Zambia’s mines minister said on Tuesday, after a disagreement over Glencore’s plan to halt production.



ZCCM-IH currently holds a 10% stake in Mopani Copper Mines. Glencore is the majority owner with 73.1% and First Quantum Minerals owns 16.9%.



A 10% stake was “not sufficient” to determine Mopani’s future, Mines Minister Richard Musukwa said in a statement, and ZCCM-IH was therefore seeking a larger stake “with a view to holding a controlling stake in Mopani”.



The mines minister told Reuters ZCCM-IH was seeking a 51% shareholding “or even more”.



Musukwa said the government has a team liaising with ZCCM-IH for the negotiations with Glencore, and ZCCM-IH is engaging a transaction adviser.



Glencore said in a statement discussions with ZCCM-IH “and other shareholders” were progressing and further updates would be issued as appropriate.



Asked about ZCCM-IH seeking a controlling stake in Mopani, a Glencore spokesman declined to comment.



A majority stake would require Glencore selling more than 41% of the company to ZCCM-IH.



Glencore’s announcement in April that it planned to suspend operations at Mopani, citing low copper prices and COVID-19 disruptions, sparked a backlash from Zambia’s government, which said Mopani had not given enough notice and threatened to revoke the company’s mining licences.



In May, Mopani said it would resume mining operations for 90 days but still expected to go into care and maintenance &#8211; a term for a temporary production halt during which a mine site is maintained ahead of an eventual restart.



On July 16 the company said it would appeal the mines ministry’s decision to reject its proposal to suspend the operations.



The government is working closely with labour unions and suppliers to ensure operations continue to run smoothly during the negotiations, Musukwa said.

Zambia’s ZCCM-IH seeks to take control of Glencore’s Mopani Copper Mines

JOHANNESBURG (Reuters) &#8211; South Africa’s Impala Platinum’s (Implats) said on Tuesday that charges relating to contraventions of lockdown rules against the chief executive of its Rustenburg operations had been dropped.



“All criminal charges in the matter against Impala as represented by Mark Munroe have been withdrawn,” said Implats in a statement after Munroe appeared in court on Monday.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="229" height="220" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/download-1.jpg" alt="" class="wp-image-379302"/><figcaption>Mark Munroe</figcaption></figure>



A case was laid against Munroe in April for allegedly contravening South Africa’s lockdown rules by calling non-essential workers back to work.



A lockdown that started on March 27 ordered most underground mines and furnaces to be put on care and maintenance. The government has since eased regulations, allowing all miners to operate at 100% from June.



The miner, which has denied any wrongdoing, expressed its support for Munroe and its management teams, saying it will continue to operate in a legally compliant and responsible manner.



An Implats spokesman said the court did not provide details on why the charges had been dropped.



South Africa is the world’s biggest producer of chrome ore, accounts for around 70% of global mined platinum supply, and is a major producer of other minerals and metals.

download

Charges of contravening lockdown provisions against Implats executive dropped

JOHANNESBURG/TORONTO (Reuters) &#8211; Mining companies need more skilled engineers if they are to meet strict new global safety standards for tailings dams aimed at preventing catastrophic failures like those in recent years that have killed hundreds of people and inundated nearby communities with mine waste.



“Most companies are realizing that there is a skills gap, because you have senior people moving out and not enough younger people moving in,” said mining engineering professor Priscilla Nelson, who is setting up a new tailings program at the Colorado School of Mines.



Experts said miners had not placed as much importance on tailings management, with little prestige attached to the unglamorous work of trekking to remote mine waste dams, where engineers analyze the consistency of the slurry and verify the integrity of the structure.



In Brazil, more than 250 people died in 2019 when the Vale SA’s (<a href="https://www.reuters.com/companies/VALE3.SA">VALE3.SA</a>) Brumadinho upstream tailings dam collapsed, flooding the nearby community with mine waste.



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul><li><a href="https://www.reuters.com/article/us-mining-tailings-skills-factbox/factbox-miners-get-new-safety-standards-to-avert-tailings-dam-disasters-idUSKCN2511MC">Factbox: Miners get new safety standards to avert tailings dam disasters</a></li></ul>



The disaster, which came not long after another fatal tailings dam collapse in Brazil, prompted a year-long effort by an industry, investor and U.N. panel, which launched the global tailings standard on Wednesday.



In June, Reuters exclusively reported details of the standard, which the International Council of Mining and Metals (ICMM) says its members will adhere to within three to five years depending on tailings dams’ risk classification. The standard is not binding but the panel expects that miners will adhere to it.



ICMM CEO Tom Butler said members that are “consistently non-compliant” with the new standard may face expulsion from the organisation.



“We want to see every company that has a tailings facility adopt the standard,” he said.



Bruno Oberle, chair of the tailings review panel, said the standard does not however apply to abandoned tailings dams with no owner.



<h3 class="wp-block-heading">‘LIFTING THEIR GAME’</h3>



Tailings dams, some of which tower dozens of meters high and stretch for several kilometers, are the most common waste-disposal method for miners.



The industry will struggle to implement the new safety rules without new training and investment in tailings management and academic courses to feed a dwindling pipeline of new talent.



A submission published with the standard said deep technical know-how is concentrated among a “relatively small” group of tailings specialists globally. After that there is a “rapid fall-off” of expertise among management and other key players, like regulators.



“There is a lack of resources within the mining industry to manage tailings,” said John Howchin, secretary-general of the Council on Ethics of the Swedish National Pension Funds, which helped craft the standard.



Brumadinho showed how devastating a tailings failure could be. Brazilian state prosecutors have charged Vale’s former CEO with homicide over the disaster.



“Any more failures &#8211; no matter whose mine it is &#8211; will affect the whole industry. Everyone has to lift their game,” said Andy Fourie, director of a new tailings management training program at the University of Western Australia.



BHP and Rio Tinto each contributed 2 million Australian dollars ($1.43 million) to the program, which will offer training for free to their employees and, for a fee, to other mining companies.



Rio Tinto said the new global standard would likely increase demand for tailings expertise across the industry and said it would “prioritise our resources to the facilities with the highest consequence classifications.”Slideshow&nbsp;(4 Images)



More than a third of the world’s tailings dams are at high risk of causing catastrophic damage to nearby communities if they crumble, a Reuters analysis of company data found last year.



Adam Matthews, director of ethics and engagement at the Church of England pensions board, said on Wednesday companies that don’t take the standard up will present a “very clear risk” to investors.



Angelica Andrade, a Brumadinho community member, gave an emotional tribute to her sister who died in the disaster.



“I don’t care how much it’s going to cost to implement the standard,” she said. “It is time for the mining sector to stop being all about profits, and act with humanity.”



Environmental NGO Earthworks said the standard does not provide sufficient safeguards for communities as, among other things, it does not include a minimum recommended distance between dams and neighbouring communities

mining

Rwanda 2024 Investment Outlook: Focus On Priority Sectors

Invest Rwanda: Kigali Economic Forum

Transforming mining in Africa: 5G Private Networks and cutting-edge tech revolutionise the industry’s future

S.Africa’s Gold Fields to buy Yamana Gold in $6.7 bln deal

Glencore prepares to pay up to $1.5 bln to settle U.S., UK, Brazil probes

Palladium to swing back into deficit, platinum surplus to fall

Anglo American unveils a prototype of the world’s largest hydrogen-powered mine haul truck – a vital step towards reducing carbon emissions over time

Global scramble for metals thrusts Africa into mining spotlight

ABB South Africa: Increased automation in mining won’t lead to job losses, here’s why

SA mining production up 116.5% y/y

Energy Capital & Power stands by African Energy Events ahead of Africa Energy & Mining Conference

Digging deeper into the state of cobalt mining in the DRC

Peter Major: Here’s what government should do to help boost SA’s gold production

Exclusive: Glencore puts entire stake in Mopani on the table in talks with Zambia: sources

Zambia’s ZCCM-IH seeks to take control of Glencore’s Mopani Copper Mines

Charges of contravening lockdown provisions against Implats executive dropped

Miners need more engineers to meet new tailings dam safety standard

News Tips

Advertise With Us

mining

Rwanda 2024 Investment Outlook: Focus On Priority Sectors

Invest Rwanda: Kigali Economic Forum

Transforming mining in Africa: 5G Private Networks and cutting-edge tech revolutionise the industry’s future

S.Africa’s Gold Fields to buy Yamana Gold in $6.7 bln deal

Glencore prepares to pay up to $1.5 bln to settle U.S., UK, Brazil probes

Palladium to swing back into deficit, platinum surplus to fall

Anglo American unveils a prototype of the world’s largest hydrogen-powered mine haul truck – a vital step towards reducing carbon emissions over time

Global scramble for metals thrusts Africa into mining spotlight

ABB South Africa: Increased automation in mining won’t lead to job losses, here’s why

SA mining production up 116.5% y/y

Energy Capital & Power stands by African Energy Events ahead of Africa Energy & Mining Conference

Digging deeper into the state of cobalt mining in the DRC

Peter Major: Here’s what government should do to help boost SA’s gold production

Exclusive: Glencore puts entire stake in Mopani on the table in talks with Zambia: sources

Zambia’s ZCCM-IH seeks to take control of Glencore’s Mopani Copper Mines

Charges of contravening lockdown provisions against Implats executive dropped

Miners need more engineers to meet new tailings dam safety standard

News Tips

Advertise With Us

Newsletters