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<p>Economist, Chibamba Kanyama joins CNBC Africa to look at movements shaping the Zambian market space.</p>


Zambian mining tax threatens output


<p>LUSAKA (Reuters) &#8211; Zambia will fine and break ties with mining firms that fail to operate according to the southern African country’s laws, President Edgar Lungu said on Thursday, escalating a dispute with India-listed Vedanta.</p>



<p>Vedanta is fighting Zambia’s decision last month to name a provisional liquidator to run its Konkola Copper Mines (KCM) business and is seeking international arbitration.</p>



<p>Zambia, Africa’s second-largest copper producer, says KCM has breached the terms of its licence.</p>



<p>The dispute between Vedanta and the Zambian government has intensified concerns among international miners about rising resource nationalism in Africa.</p>



<p>Lungu said in a statement at a mining and energy conference in Lusaka that the government expected investors to operate within the confines of the law.</p>



<p>“Failure to do so will result in the government imposing sanctions and disengaging with the unwilling parties,” he said in the statement read out by Mines Minister Richard Musukwa.</p>



<p>Zambia’s Chamber of Mines said last month that 2019 copper output could be as much as 100,000 tonnes lower than last year because of changes to mining taxes.</p>



<p>Zambia plans to introduce a new non-refundable sales tax in place of Value Added Tax, despite criticism from mining companies.</p>



<p>Lungu disagreed with the Chamber of Mines’ predictions, saying the government forecast copper output would reach 890,000 tonnes by the end of the year, more than last year.</p>



<p>He said the government was ready for dialogue with miners, which account for 70 percent of export earnings.</p>



<p>But he added: “The government will not take kindly to any form of arm-twisting on the part of industry with regard to meeting their obligations.”</p>



<p>Reporting by Chris Mfula; editing by Emelia Sithole-Matarise </p>


Why Zambian president is threatening to fine miners

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<p>African Rainbow Minerals, chaired by South African billionaire Patrice Motsepe, is confident about the prospects for the mining sector, this as the government is trying to position mining into a sunrise sector even though many investors have turned their back on it due to paltry profits. CNBC Africa&#8217;s Fifi Peters caught up with the CEO of African Rainbow Minerals, Mike Schmidt for more.</p>


African Rainbow Minerals confident of new dawn in mining

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<p>Everyone is fighting for investments, so why should you invest in South Sudan, since its birth in 2011 the country has suffered with political turmoil and economic stagnation.</p>


Minister Gabriel Thokuj Deng on mining business opportunities in South Sudan


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Northam Platinum said on Tuesday it had placed a 1.65 billion rand ($118 million) domestic medium term note and would use initial proceeds to repay other notes in issue.</p>



<p>The miner said the private placement of the notes fell under its 2 billion rand domestic medium term note programme and the paper has one- two- and three-year maturities.</p>



<p>($1 = 14.0200 rand)</p>



<p>Reporting by Tanisha Heiberg; Editing by Kirsten Donovan<br></p>


What you need to know about South Africa’s Northam Platinum raising $118 million with medium term note placement

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<p>The Nigerian government has suspended mining in Zamfara State in its north-western region due to security challenges. Officially granite was the most mined resource in Zamfara for 2018. Cyril Azobu, Partner and Head, Consulting and Mining leader at PWC joins CNBC Africa to discuss this and for a focus on Nigeria&#8217;s mining sector.</p>


How can Nigeria maximise its mining potential?

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<p>Gwede Mantashe was also in the Vaal wearing his mining minister hat and had withering word for the mining companies of South Africa and their court challenge to the Mining Charter – the document that governs black ownership in the industry. CNBC Africa’s Lubabalo Mashiquana caught up with the minister.</p>


Mantashe blasts SA’s mining companies for bully boy tactics

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<p>Words flew when the chairman of South Africa’s ruling African National Congress hit the campaign trail last night in Evaton in the Vaal east of Johannesburg. The Vaal was hit by violent protests and a taxi strike a week ago today. Gwede Mantashe was there to talk to the people on the ground about one of the bones of contention – service delivery.</p>


We are not buying votes with services: Mantashe

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<p>Manufacturing and construction industries have been the main sectors to shed most jobs. This has been reported in the third quarter employment numbers released by Statistics SA. These results show a decrease of 16 thousand jobs in formal non-agricultural sector the quarter ended in September. Joining CNBC Africa to unpack the employment survey for the third quarter is Matlapane Masupye, Director Employment Statistics at StatsSA.</p>


Manufacturing, mining major contributors to third quarter job losses

<p>HARARE (Reuters) &#8211; Zimbabwean gold mines have been allowed to retain 55 percent of their earnings in dollars, from 30 percent previously, the deputy mines minister said, as the government moves to ensure their operations remain viable.</p>
<p>Polite Kambamura said miners of gold, the country’s largest mineral export, should be allowed to earn up to 70 percent of their sales in dollars.</p>
<p>The mining sector like most of businesses in the southern African nation, is struggling to pay for imports like spares and other consumables due to a severe dollar crunch.</p>
<p>Reporting by MacDonald Dzirutwe; Editing by Adrian Croft</p>


Zimbabwe gold mining firms have been allowed to retain 55 pct of dollar earnings, what you need to know…

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<p>Douglas Rowlings, Senior Corporate Analyst at Moody’s joins CNBC Africa with Moody’s report on SA mining companies and rand volatility.</p>


What a weak rand means for SA’s mining stocks

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Gold Fields said on Tuesday it plans to slash costs at its struggling South Deep mine, including cutting 1,100 jobs, or around 30 percent of its workforce.</p>
<p>South Deep, the company’s last South African asset, has faced operational obstacles in a tough geological setting 3 km (2 miles) below the surface. The mine made a loss of 337.6 million rand ($27 million) in 2017.</p>
<p>Gold Fields shares opened 3 percent lower at 47 rand per share.</p>
<p>The bullion producer, which has invested 32 billion rand in the operation since acquiring it in 2006, said it could no longer sustain losses at the mine, which has missed several production targets despite significant modernisation.</p>
<p>“The key challenge has been the difficulty in transitioning the mine from one run with a conventional mining mindset and practices to mining with a modern, bulk, mechanised mining approach,” Gold Fields said in a trading update.</p>
<p>The firm also said it expects headline earnings per share for the six months ended 30 June 2018 to be unchanged at $0.08 per share compared with the previous reporting period.</p>
<p>Reporting by Tanisha Heiberg; Editing by Joe Brock</p>


What you need to know about South Africa’s Gold Fields’ plan to cut over 1,100 jobs at South Deep mine

<figure><img decoding="async" src="https://images.theconversation.com/files/226552/original/file-20180706-122280-1k6sidt.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="File 20180706 122280 1k6sidt.jpg?ixlib=rb 1.1" /><figcaption><span class="attribution"><span class="source">Shutterstock</span></span></p>
</figcaption></figure>
<p><a href="https://theconversation.com/profiles/bernelle-verster-447757">Bernelle Verster</a>, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/cheri-leigh-young-502285">Cheri-Leigh Young</a>, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/francois-steenkamp-502558">Francois Steenkamp</a>, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/jennifer-lee-broadhurst-245778">Jennifer Lee Broadhurst</a>, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>, and <a href="https://theconversation.com/profiles/sue-harrison-246842">Sue Harrison</a>, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town </a></em></p>
<p>South Africa’s economy was built on the mining industry. But the sector has been in decline for decades. <a href="http://www.statssa.gov.za/?cat=41">Mining</a> contributed R312 billion, or 6.8%, to South Africa’s GDP and 464 667 direct jobs in 2017, a far cry from the 21% contribution to GDP in the 1970’s.</p>
<p>Over the past two decades, 6 000 mines have been <a href="http://crown.co.za/latest-news/modern-quarrying-latest-news/5530-planning-for-successful-mine-closure">abandoned</a> and a large <a href="https://www.researchgate.net/publication/278035528_Mine_closure_in_South_Africa_A_survey_of_current_professional_thinking_and_practice">number</a> are expected to be closed in the next ten years. As one consulting <a href="https://www.miningmx.com/news/platinum/32500-third-sa-platinum-harvest-mode-industry-crisis-deepens/">analyst</a> and engineer in mining puts it, “we are in mine closure inducement mode right now”. Fixed investment in the industry has been shrinking over the past 10 years, while almost 30 000 jobs have been lost since 2014.</p>
<p>Mine closures create an economic vacuum, especially if the mines have been the only generator of economic activity in an area. Essential services, such as medical and health facilities, can also disappear if they were provided for by mining companies. Distressed communities are left behind to fend for themselves.</p>
<p>Towns like <a href="https://www.news24.com/SouthAfrica/News/tough-times-for-small-town-blighted-by-mine-closure-20170529">Carletonville</a>, Kroondal and Witbank in South Africa have already felt the impact.</p>
<p>A mine closure is a multifaceted injury that occurs in a narrow time frame. Communities don’t have a chance to adapt. It’s therefore important for closures to be planned and managed throughout a mine’s life cycle so that when the inevitable happens, people are better prepared.</p>
<p>We have been conducting <a href="http://www.resilientfutures.uct.ac.za/inputs">research</a> into different approaches to mine closures, viewed from several angles. The research covers a range of topics. These include how value can be added by treating acid mine drainage through <a href="https://www.sciencedirect.com/science/article/abs/pii/S0892687509002453">biomining</a>, evaluating sustainable development in the context of mines preparing for <a href="https://www.ajol.info/index.php/ajsd/article/view/111127">closure</a>, evaluating the legal requirements to facilitate <a href="https://brill.com/view/book/edcoll/9789004313521/B9789004313521-s009.xml">mine transformation</a> and investigating the <a href="https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WPS_No_256_Manufacturing__Employment-Complexity_Analysis_Zc_.pdf">economic complexity</a> required to grow the South African economy beyond primary resource extraction.</p>
<p>A great deal of research is going into <a href="http://www.resilientfutures.uct.ac.za/inputs">green mining</a> – an approach that involves mining metals and minerals for the benefit of local communities and in ways that lead to minimal environmental degradation. This includes planning beyond mine closure, while the mine is still operational.</p>
<p>Members from each of the teams involved in the research at the University of Cape Town are trying to find more integrated opportunities to address the complexities of mine closures. Our approach has been to address the challenge through a <a href="http://www.resilientfutures.uct.ac.za">multi-faceted</a> approach that involves collaboration across disciplines. This approach takes into account the perspectives of natural scientists (including bio, environmental and inorganic chemists), chemical engineers, legal specialists and developmental economists.</p>
<h2>Opportunities beyond mining</h2>
<p>An area we are exploring is whether the infrastructure left behind after mine closures can be put to new use.</p>
<p>One key insight is that the infrastructure that supports mining can also be used for <a href="http://www.miningfacts.org/economy/how-does-large-scale-mining-affect-agriculture/">agriculture</a>.</p>
<p>Another avenue of research investigates planting fibre-producing plants such as bamboo or hemp on mine land. The attraction here is that fibre-producing plants could achieve multiple objectives.</p>
<p>The first is that they have the ability to rehabilitate the land itself. Fibrous plants are particularly useful because they selectively absorb metals from the soil.</p>
<p>Secondly, communities can diversify a local economy by changing the land use from mining to agricultural activity. This could spur the development of downstream industries, including the manufacturing of textiles and furniture which can be produced from the fibre and stems of some of these plants.</p>
<p>An inter-disciplinary approach has been adopted in exploring the possibility of using fibrous plants on land previously used for mining.</p>
<p>For example, the <a href="http://www.ceber.uct.ac.za/">Centre for Bioprocessing Engineering Research</a> from the University of Cape Town, is reviewing the available information on fibrous plant suitability. This is done by assessing the best match of plant and degraded land. Key considerations include:</p>
<ul>
<li>the features of the geography and soil;</li>
<li>the resilience of the plant and its productivity; and</li>
<li>the nutrient and water requirements.</li>
</ul>
<p>At the same time the <a href="http://www.mineralstometals.uct.ac.za/">minerals to metals group</a> is assessing the potential for plants removing metal from the soil, the impact of plant type on removal, and ease of metal recovery. Their goal is to identify the most suitable crop types to achieve not only the best outcome for economic diversification, but also rehabilitation of the land.</p>
<p>The project draws on <a href="http://www.hsrc.ac.za/en/research-outputs/view/9301">existing research</a> that’s already been done around the economic potential of bamboo in South Africa.</p>
<h2>Opportunities</h2>
<p>South Africa isn’t short of opportunities in which to try out new approaches. Mine closures are a regular occurrence. Lonmin, for example, has announced that over the next three years it will be closing some operations with the loss of over <a href="https://www.moneyweb.co.za/news-fast-news/shrinking-platinum-sector-adds-to-ramaphosas-economy-challenge/">12 000 jobs</a>.</p>
<p><img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/98505/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" />Moving from the concept of mine closure to mine transformation – taking into account the environmental as well as societal and economic effects of mining – provides new opportunities to fill the economic and governance vacuum of mines closing, easing the traumatic transition for affected communities and contributing to securing resilient future livelihoods.</p>
<p><a href="https://theconversation.com/profiles/bernelle-verster-447757">Bernelle Verster</a>, Researcher, Future Water Institute. Bioprocess engineering background, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/cheri-leigh-young-502285">Cheri-Leigh Young</a>, Postdoctoral research fellow, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/francois-steenkamp-502558">Francois Steenkamp</a>, Researcher, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>; <a href="https://theconversation.com/profiles/jennifer-lee-broadhurst-245778">Jennifer Lee Broadhurst</a>, Associate Professor, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em>, and <a href="https://theconversation.com/profiles/sue-harrison-246842">Sue Harrison</a>, Director for the centre of bioprocess engineering research, <em><a href="http://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a></em></p>
<p>This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/finding-ways-to-keep-communities-alive-after-mine-closures-98505">original article</a>.</p>


How communities in Africa can thrive after mine closures

<p>ABUJA (Reuters) &#8211; Nigeria will offer a 12.7 billion naira ($41.6 million) mining contract to eight companies in exploration and consultancy, its junior mining minister said on Wednesday, adding both foreign and local firms were encouraged to participate.</p>
<p>Nigeria’s economy, one of Africa’s largest, has been built largely on its rich crude oil reserves, leaving other sectors to stagnate. In an attempt to diversify, President Muhammadu Buhari’s administration is now seeking to build up other sectors, including mining, though results have been mixed, according to economic data.</p>
<p>“Today the Federal Executive Council (Nigeria’s cabinet) approved the contract for exploration and consultancy on some of our targeted minerals &#8211; like gold, industrial minerals, earth metals, iron ore &#8211; for four companies in exploration and four companies in consultancy,” Abubakar Bawa Bwari, the minister of state for solid minerals, told reporters after the cabinet meeting.</p>
<p>Bwari said the exploration and consultancy work would result in data that would encourage potential mining firms to invest in Nigeria.</p>
<p>“Our major challenge is the bankable data, most mining companies will not want to come into your country when they are not sure of what they are going to meet,” he said.</p>
<p>($1 = 305.2000 naira)</p>
<p>Reporting by Felix Onuah; Writing by Paul Carsten; Editing by Mark Potter and David Evans</p>


Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

<p>JOHANNESBURG (Reuters) &#8211; A U.S. law firm has filed a class action lawsuit against South African miner Sibanye-Stillwater on behalf of shareholders to recover losses suffered after a spate of deaths at its mines triggered a sharp fall in its share price.</p>
<p>Bernstein Liebhard LLP said in a statement the suit would deal with “misleading statements” made by the precious metals producer, which has had 21 fatalities on its operations so far in 2018, almost half of the total in South Africa’s mining industry.</p>
<p>Reporting by Tanisha Heiberg; Editing by Ed Stoddard</p>


Why US law firm has filed lawsuit against South Africa’s Sibanye-Stillwater

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<p>South Africa&#8217;s new mining minster, is continuing his bruising national tour aimed at convincing people who live next to mines to go along with plans for the country&#8217;s amended mining charter.</p>


We are close to an agreement on the Mining Charter – SA’s Mines Minster Mantashe

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<p>Mining companies in Rwanda are asking for tax waivers and reforms in the existing mining regimes to allow scale and increase of revenue. Francis Gatare, CEO of the Rwanda Mines, Petroleum and Gas Board joins CNBC Africa for more.</p>


mining

Zambian mining tax threatens output

Why Zambian president is threatening to fine miners

African Rainbow Minerals confident of new dawn in mining

Minister Gabriel Thokuj Deng on mining business opportunities in South Sudan

What you need to know about South Africa’s Northam Platinum raising $118 million with medium term note placement

How can Nigeria maximise its mining potential?

Mantashe blasts SA’s mining companies for bully boy tactics

We are not buying votes with services: Mantashe

Manufacturing, mining major contributors to third quarter job losses

Zimbabwe gold mining firms have been allowed to retain 55 pct of dollar earnings, what you need to know…

What a weak rand means for SA’s mining stocks

What you need to know about South Africa’s Gold Fields’ plan to cut over 1,100 jobs at South Deep mine

How communities in Africa can thrive after mine closures

Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

Why US law firm has filed lawsuit against South Africa’s Sibanye-Stillwater

We are close to an agreement on the Mining Charter – SA’s Mines Minster Mantashe

Rwanda to review mining laws

News Tips

Advertise With Us

mining

Zambian mining tax threatens output

Why Zambian president is threatening to fine miners

African Rainbow Minerals confident of new dawn in mining

Minister Gabriel Thokuj Deng on mining business opportunities in South Sudan

What you need to know about South Africa’s Northam Platinum raising $118 million with medium term note placement

How can Nigeria maximise its mining potential?

Mantashe blasts SA’s mining companies for bully boy tactics

We are not buying votes with services: Mantashe

Manufacturing, mining major contributors to third quarter job losses

Zimbabwe gold mining firms have been allowed to retain 55 pct of dollar earnings, what you need to know…

What a weak rand means for SA’s mining stocks

What you need to know about South Africa’s Gold Fields’ plan to cut over 1,100 jobs at South Deep mine

How communities in Africa can thrive after mine closures

Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

Why US law firm has filed lawsuit against South Africa’s Sibanye-Stillwater

We are close to an agreement on the Mining Charter – SA’s Mines Minster Mantashe

Rwanda to review mining laws

News Tips

Advertise With Us

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