Tag Archives | Gold
All mining operations in the country are to be reviewed and those not in the best interests of Mali are to be renegotiated, said Mines Minister Boubou Cisse in September of last year. Cisse was speaking a month after President Ibrahim Boubacar Keita came to power and announced his party’s commitment to weeding out corruption.
Africa is the world’s most mineral-rich continent and consequently has the potential to become a mining mecca. There are large deposits of coal, diamonds, gold, uranium, platinum, iron, rock salt, potash, and more. Mining companies are also attracted to Africa by the relatively low cost of labour and relaxed regulatory frameworks.
Nigeria is known for it’s vast natural wealth, with majority of the country’s foreign exchange income and government revenue stemming from oil. With the recent announcement that Africa’s wealthiest man, Aliko Dangote, has signed a deal to finance the building of Africa’s largest oil refinery in Nigeria, all eyes are on the region’s mining sector.
Africa’s economies have been expanding robustly as new discoveries of coal, oil and gas look set to create substantial business opportunities and transform the continent’s economies. The continent not only is a major producer of diamonds, nickel and uranium, but also holds 40% of the world’s gold, 60% of cobalt and 90% of its platinum reserves. Africa’s growth, however, results from more than a resource boom, having been supported (amongst other factors) by external trends such as its’ increased access to international capital and ability to forge economic partnerships with foreign investors.
Africa Brief: Timing vital for African success, Zambian telecoms, campaign begins in divided Mali and more
Timing is crucial for both companies and investors, seen in a recent report produced by Avior. Wrong execution or timing could damage investor confidence and destroy capital. For instance, Altech operations in Nigeria and Kenya have been generating significant losses until disposal thereof in January 2013. Altech’s net cash resources have dwindled from Rl.6bn to a net debt position of around R800 million over the past four years. The researchers concluded that the best time to buy into a company depended on the differential between growth in South Africa and growth across its borders, as well as the extent of the company’s exposure to the rest of Africa.
Africa Brief: Inflationary pressure feared, Togo-Ecobank goes on hiring drive, Famous Brands in Africa and more
Uganda’s central bank held its benchmark lending rate at 11 percent on 2 July 2013, citing renewed inflationary pressure. Policymakers said the bank expected annual core inflation would rise slightly over the next two or three months, before falling back towards its medium-term target of 5 percent.
Seven of the world’s ten fastest growing economies are in Africa, 52 African cities have populations of over 1 million people and by 2040 it is expected that 1.1 billion Africans will be of working age. Africa has 60% of the world’s uncultivated, arable land; 56.7% of the world’s diamond (gemstone) production, 66% of the worlds’ cocoa production, 10% of the world’s oil reserves, 80-90% of the world’s platinum group metal reserves and 40% of the world’s gold reserves.
The future of mining in Africa depends on the short to medium-term outlook of all commodity prices and government tax reform initiatives. These factors will determine whether gold and coal miners succeed in countries like Ghana and Mozambique, and can seriously affect the future growth of the industry.
It is projected that by 2016, over 500 million Africans will live in urban centres, and the number of cities with more than 1 million people is expected to reach 65, compared to 52 in 2011. This is already on par with Europe and higher than India and North America. With 40 percent of its population living in cities, Africa is more urbanized than India (30 percent) and nearly as urbanized as China (45 percent).
The attractiveness of Africa as an investment destination has been positively impacted by a number of developments in the regulatory environment in African countries …
Rapid investment growth had made SA the ninth-leading destination for clean energy investment among the Group of 20 (G-20) of the world’s developed and emerging economies, after coming in last in 2011. Clean energy investment in SA is likely to remain strong in coming years as the country implements its relatively new renewable energy tender programme, which has initiated 28 projects already.
A panel of experts explore the challenges & opportunities associated with investing in Ghana.
Ghana is one of Africa’s fastest growing economies. Well-endowed with natural resources, agriculture accounts for approximately a quarter of GDP and employs more than half the country’s work-force.
Gold, cocoa and timber exports are the major sources of foreign exchange. Imports such as capital equipment, petroleum and food products are sourced mainly from China and the US.
Home to 43-million people, Tanzania ranks amongst the poorest countries in the world.
The country is reliant on agriculture which accounts for more than 25% of GDP, 85% of exports and employs 80% of the countries workforce.
Tanzania is endowed with vast natural resources and is the only country in the world where Tanzanite is found. The country is also the third-largest producer of gold on the continent which it exports to China, India and Japan.
Nigeria is the most populous country on the African continent with approximately 150-million people and is the 32nd largest country with the 41st largest economy in the world.
According to the World Bank, Nigeria is classified as a mixed economy, emerging market. Nigeria has reached middle income status, with well developed financial, legal and transport sectors. Nigeria boasts the second largest Stock Exchange in Africa and enjoys an annual economic growth of 7%.
68 000 jobs were lost between October and December last year, this is the first fourth quarter fall in employment since the start of Statistics SA’s quarterly labour force survey (QLFS) five years ago. This is not likely to be the end of job losses. Standard Bank research strategist Shireen Dar-malingam said, if Anglo American Platinum went ahead with its plans to retrench 14 000 workers, total mining employment would be reduced by 3%.
Egypt’s central bank cancelled a foreign currency auction that was supposed to take place on 3 February 2013 and said it will announce details of upcoming auctions. This is believed to be a signal of a possible change to a system of currency sales brought in to stem a decline in foreign reserves.
Uganda will auction 13 blocks for oil and gas exploration when a new bill governing the petroleum sector is signed into law by the President Yoweni Museveni.
Ghana’s producer price inflation rose in December to 17.1% from 15.8% in November, due to increasing gold prices.
The value of Canadian mining mergers and acquisitions plunged 50% in the first quarter compared to the prior three months, with only one deal topping $1-billion.
Gold accounted for 60% of deal volume and value for the period. During the three months ended March, KPMG counted 25 deals worth more than $10-million in the Canadian mining sector, which was comparable to the December quarter’s deal volume.