Mining operations

Africa Brief: Investors choose South Africa, Areva mines, and more

Investors choose SA for African deals

South Africa remains the most targeted country for investment in Sub-Saharan Africa. The value of merger and acquisition investments in Sub-Saharan Africa increased by 18% in 2012, even though globally mergers and acquisitions deals decreased by 7%.

Majority of the M & A were in the materials, energy and power sectors. The Royal Bank of Canada and Golddman Sachs made the two largest investments. South Africa was the most active nation in the equity capital markets in 2012.

For the full story, read Investors choose SA for African deals by Iondiwe Buthelezi, published in The Star, Business Report on 06/02/2013.

Niger: Areva’s mines must do more

Niger and Areva are in discussion as Niger would like Areva to contribute more to the nations income, making any new deals more beneficial to the state.

For the full story, read Niger: Areva’s mines must do more by Bloomberg, published in The Star, Business Report on 06/02/2013.

Zambia: State sells debt more carefully

State-owned firms looked to international markets to invest in infrastructure projects.

For the full story, read Zambia: State sells debt more carefully by Reuters, published in The Star, Business Report on 06/02/2013.

Guinea: Mining deals under review

Guinea is to review all its mining contracts including 2011 settlement agreement with Rio Tinto.

For the full story, read Zambia: State sells debt more carefully by Reuters, published in The Star, Business Report on 06/02/2013.

‘Prove that mines develop SA’

Delegates at the Alternative Mining Indaba have called on the government to study the costs and benefits involved in the mining industry to determine to what extent the industry does help to develop the South African economy. According to David van Wyk, the head of research at Bench Marks Foundation when it comes to providing jobs, the local population is overlooked because mining companies want to be profitable from day one and so will not undertake the necessary training.

This is partly why so much mining activity is done by a population of migrant labour, which moves around the country following mining activity,” said Van Wyk, who added that it was easier to control and retrench migrant labour.

For the full story, read Prove that mines develop SA’ by Ann Crotty, published in The Star, Business Report on 07/02/2013.

Exxaro, Equatorial on target in Congo

The Republic of Congo’s nascent iron-ore industry is on the verge of deliveries, with South Africa’s Exxaro Resources commissioning a plant this year and Australia’s Equatorial Resources steaming ahead with its exploration project which it is planning to bring into production soon. Exxaro bought Australia’s African Iron last year, securing a well advanced iron ore exploration project in the Congo.

The project is close to a railway line that was used to haul about 3 million tons a year of manganese to the port of Pointe Noire. The intention is to grow production fivefold to 10 million tons, with the second phase of the plant needing to be commissioned in 2016 to meet that level.

For the full story, read Exxaro, Equatorial on target in Congo by Allan Seccombe, published in Business Day on 07/02/2013.

African mining shares fall behind peers

African mining share prices were now underperforming their emerging market peers despite the continent being well endowed with vast quantities of mineral resources and commodity prices still hovering at record highs. This was the view of several market analysts and commentators presenting at the JSE’s investor education workshop, held on the fringes of the Mining Indaba this week.

Issues that were constraining investors’ appetites for major and junior mining shares were the lack of infrastructure, labour unrest, high input costs such as electricity and fuel, political uncertainty, and legal and regulatory regimes.

For the full story, read African mining shares fall behind peers by Paul Vecchiatto, published in Business Day on 07/02/2013.

David Okwara

, , , , , , , , , , , , , ,

No comments yet.

Leave a Reply

LEGAL PRIVACY POLICY
Twitter Linkedin Facebook YouTube RSS