Anglo Shakes Up Market; Africa Mining Vision Gains Traction
March 27, 2017 11:24 am | Published by admin
Ghana Moves on Fronting, SA Climate Change Ruling a First
Regulatory moves and infrastructure challenges feature prominently in this week’s roundup of news from across the African continent. To prevent fronting, Ghana is expected to review laws governing local content participation in the mining sector and perhaps even consider punitive action to deter locals from ceding portions of the mining industry reserved for Ghanaians to foreigners. [GhanaNews] Also, Kenya’s Parliament has ruled out giving a Chinese firm a contract to do digital mapping of its mineral resources, in favour of a local geologist and reinstated Sh2.7bn budget for the survey. [StandardMedia] On the infrastructure side, Zambia’s electricity costs will be the ‘defining issue’ for the mining sector this year and beyond, according to Chamber of Mines President Nathan Chishimba, [EngineeringNews] whereas Tanzania opted to award a coal mining licence to the local unit of Nigeria’s Dangote Cement, in an effort to lower its production costs and ease disruptions caused by energy shortages. [MiningWeekly] Meanwhile in South Africa two key regulatory decisions in the past week look set to change local mining dynamics. The most significant one by far has been the Pretoria High Court decision to recognise the significant effects climate change has on SA, by setting aside a government decision to authorise a new coal-fired station. [BD] Equally important is a proposed amendment to the Minerals & Petroleum Resources Development Act that small scale miners must be black-controlled in order to apply for a mining permit. [MiningMx]
MERGERS & ACQUISITIONSAnglo Shakes Up Market, Again
On the M&A front, Trevali Mining expands its footprint into Africa with a US$400m acquisition of a portfolio of zinc assets from Glencore in Namibia and Burkina Faso [Reuters] and Vale looks set to pocket US$733m by month-end from the sale of its stake in Mozambique’s Moatize coal project to Japan’s Mitsui & Co. [MiningWeekly] By far the most interesting development this week, however, was Vedanta chairman Anil Agarwal’s bid for a 12% stake in Anglo American. The planned US$2.4bn investment will make the Indian tycoon the second largest shareholder. [MiningMx] The news also pushed Anglo’s share price up by some 10%. [CityAM] Exxaro Resources, meanwhile, is to ask Anglo American whether it can exchange its shares in Sishen Iron Ore Company (SIOC) for a stake in Kumba Iron Ore as part of its strategy to restructure its investment portfolio. [MiningMx] Still with Anglo, apparently the two leading bidders for Anglo American’s South African coal mines, Phembani Group and Masimong Minerals, are planning to list their companies if they are successful in buying the operations. [IOL]
Interview with Roger Murphy, CEO of Sula Iron & Gold, runner-up of the first annual Investment Battlefield Competition for junior miners. [VIDEO]
FUNDING NEWSMining Indaba Investment Battlefield Runner Up Sula Raises Cash for Gold Project
Several successful funding rounds took place this week. Sula Iron & Gold, runner-up in the Mining Indaba Investment Battlefield competition, has raised £0.5m to fund its exploration programme in Sierra Leone [MiningCapital] and Perseus Mining has secured US$40m in funds for development of its Sissingué gold project in Côte d’Ivoire. [MiningMx] Also, Resource Generation has obtained a further US$8.4m to fund the operations and development of the Boikarabelo mine, in the Waterberg coalfield [MiningReview] West Africa-focused Kodal Minerals, meanwhile, has entered into negotiations for a proposed offtake agreement and possible further investment in its Bougouni lithium project, in southern Mali, [MiningWeekly] and junior miner Nzuri Copper hopes to raise A$4.78m through a share placement for its Kalongwe copper project in the DRC. [MiningWeekly]
Regulatory moves and infrastructure challenges feature prominently in this week’s roundup of news from across the African continent. To prevent fronting, Ghana is expected to review laws governing local content participation in the mining sector and perhaps even consider punitive action to deter locals from ceding portions of the mining industry reserved for Ghanaians to foreigners. [GhanaNews] Also, Kenya’s Parliament has ruled out giving a Chinese firm a contract to do digital mapping of its mineral resources, in favour of a local geologist and reinstated Sh2.7bn budget for the survey. [StandardMedia] On the infrastructure side, Zambia’s electricity costs will be the ‘defining issue’ for the mining sector this year and beyond, according to Chamber of Mines President Nathan Chishimba, [EngineeringNews] whereas Tanzania opted to award a coal mining licence to the local unit of Nigeria’s Dangote Cement, in an effort to lower its production costs and ease disruptions caused by energy shortages. [MiningWeekly] Meanwhile in South Africa two key regulatory decisions in the past week look set to change local mining dynamics. The most significant one by far has been the Pretoria High Court decision to recognise the significant effects climate change has on SA, by setting aside a government decision to authorise a new coal-fired station. [BD] Equally important is a proposed amendment to the Minerals & Petroleum Resources Development Act that small scale miners must be black-controlled in order to apply for a mining permit. [MiningMx]
On the M&A front, Trevali Mining expands its footprint into Africa with a US$400m acquisition of a portfolio of zinc assets from Glencore in Namibia and Burkina Faso [Reuters] and Vale looks set to pocket US$733m by month-end from the sale of its stake in Mozambique’s Moatize coal project to Japan’s Mitsui & Co. [MiningWeekly] By far the most interesting development this week, however, was Vedanta chairman Anil Agarwal’s bid for a 12% stake in Anglo American. The planned US$2.4bn investment will make the Indian tycoon the second largest shareholder. [MiningMx] The news also pushed Anglo’s share price up by some 10%. [CityAM] Exxaro Resources, meanwhile, is to ask Anglo American whether it can exchange its shares in Sishen Iron Ore Company (SIOC) for a stake in Kumba Iron Ore as part of its strategy to restructure its investment portfolio. [MiningMx] Still with Anglo, apparently the two leading bidders for Anglo American’s South African coal mines, Phembani Group and Masimong Minerals, are planning to list their companies if they are successful in buying the operations. [IOL]
