First Quantum talks with potential partners about Zambian assets
First Quantum Minerals, a Canadian miner, said that it is in discussions with potential partners about its Zambian assets. It did not reveal the names of these firms. Three people with knowledge of the deal said that Saudi Arabian Manara Minerals was close to a deal for a minority share in First Quantum Zambian copper-nickel assets. In morning trading, shares of the company rose 3% to C$18.93. Copper is an important element in the clean energy revolution, as it is used in electric cars, and to power data centers that use artificial intelligence.
Tanzania builds grid interconnector to Zambia to mitigate power crisis
Tanzania's vice prime minister announced at the Singapore International Energy Week on Monday that Tanzania will build a grid-interconnector with Zambia in order to assist in reducing a power crisis caused by a drought. "We already have interconnectors in place with our neighbours Burundi and Kenya, but now we're putting up one with Zambia. This will allow us to help our neighbor, Zambia, who is suffering from a severe drought," said Doto Biteko. He is also the Energy Minister. "Tanzania is a member of Eastern African Power Pool...
UN chief warns that Africa's inability to access debt relief could lead to social unrest
The lack of resources and insufficient debt relief for African countries is a recipe to create social unrest. This was the conclusion reached by UN Secretary-General Antonio Guterres on Thursday. He proposed new reforms to international financial institutions. In recent months, a growing debt crisis has sparked civil unrest across Africa's 1 billion people. Protests in Kenya where police clashed against demonstrators protesting proposed tax increases, inspired people in Nigeria and Uganda to take to their streets over the rising cost of living.
BHP's return in Argentina is a new sign of hope for copper mines that are still untapped
More than half a dozen officials from the mining industry said that a new incentive program for mining in Argentina has attracted major players like BHP. They are now looking to the South American nation as the next frontier for the copper market. BHP's investment in Argentina last month was the first time in 20 years that BHP had invested in mining. The company teamed up in the $3.25billion buyout of Filo Corp with Canada's Lundin Mining with the goal of developing two mines of copper along the Andes Mountains bordering Chile.
Zambia Short-lists Five Firms for Majority Stake in Oil Refinery
Zambia has short-listed five companies including Britain's Glencore Energy Ltd. and Sahara Energy Resources Ltd. to buy a majority stake in its only oil refinery, a state-owned firm said on Monday. The government-owned Industrial Development Corporation (IDC) has said it wants a strong strategic equity partner that will improve the production capacity of Indeni Oil Refinery to a level that will meet the nation's future petroleum demand. The IDC said in a statement the short-listed firm will now be asked to submit technical proposals on their bids. Reporting by Chris Mfula
Statkraft Divests Renewable Energy Assets in Four Markets
Norway's Statkraft swapped its hydropower units in Panama, Laos, Philippines and Zambia with other renewable energy assets in South America and Asia previously co-owned by a Norwegian development fund, the two organisations said on Wednesday. Statkraft acquired full ownership of hydropower, solar and wind assets in Peru, Brazil, Chile, India and Nepal from Norfund, part of its strategy to operate in fewer places but increase its ownership in different renewables. "We want to focus on fewer markets and have a plan to increase wind and solar power capacity…
Tullow Launches Oil, Gas Exploration in Zambia
British company Tullow Oil on Friday started exploring for oil and gas in Zambia, Africa's No.2 copper producer, as the country pushes to diversify its economy and reduce its reliance on the industrial metal. Copper mining earns Zambia more than 70 percent of its foreign exchange but the southern African state has been trying to move into other commodities to insulate itself from price shocks. Zambia does not produce oil, but the government says soil samples sent to European laboratories have shown good traces of crude.
Zambia's 2016 Investment Pledges up Marginally to $3.4 bln
Zambia recorded $3.4 billion in investment pledges in different sectors of the economy in 2016, representing a 0.7 percent increase from the previous year, the investment promotion agency said on Wednesday. The energy sector registered the highest amount of pledged investment, followed by manufacturing and agriculture, the Zambia Development Agency said in a statement. It said investment rose despite a general election last year, showing confidence in Zambia was not eroded, and forecast a further rise this year, especially in the energy sector.
Tanzania, Congo Sign Deal for Petroleum Exploration in Lake Tanganyika
Tanzania and the Democratic Republic of the Congo signed a memorandum of understanding on Tuesday for joint exploration and development of hydrocarbons in Lake Tanganyika. The lake, which straddles the border between Tanzania, Democratic Republic of Congo, Burundi and Zambia, is the world's second largest by volume and second deepest, according to officials. "We have signed a memorandum of understanding to exchange experiences in exploration and exploitation of petroleum in Lake Tanganyika…
Vedanta to close merger with Cairn India in early 2017
Mining and energy group Vedanta Resources expects to complete its merger with Cairn India early next year, a move that would boost the firm's financial strength, Vedanta's CEO said on Friday. Vedanta is among the resource firms hit by a collapse in commodity prices and it is also facing legal action and activist protests over its operations in Zambia. In a speech to a London shareholders' meeting, CEO Tom Albanese said the rationale for the merger was compelling, which was why Vedanta announced improved terms in July. "The merger ...
Turkish Power Ship to Supply Electricity to Zambia
Turkey's Karadeniz will in the next two weeks begin supplying Zambia with electricity from a power-generating ship as it looks to take advantage of chronic shortages in Africa, the company said on Wednesday. Karadeniz builds what are effectively floating power stations which plug into electricity grids after berthing. They run on fuel oil but can also use natural gas. One of the firm's vessels docked this week at Mozambique's Nacala port, from where it will supply 100 megawatts of electricity for the next two years…
Glencore's Debt-Reduction Plan Includes Output Cut
Firm to cut 2016 oil production by 20 pct as prices slide. Glencore has taken another step to reduce its debt by selling $500 million of future precious metals output, and deepened oil production cuts after prices fell further. Glencore said on Thursday it planned to produce about 8.5 million barrels of oil in 2016, down 20 percent from last year and lower than the 9.6 million it had estimated in December. Brent crude prices have dropped nearly a fifth so far this year, after sliding 35 percent in 2015 due to a glut of supply and concern about weaker demand.
Zambia Hikes Electricity Rates for Mining Companies
Zambia increased the price of electricity for mining companies by 26 percent this year as Africa's second-largest copper producer seeks to attract investment in power generation, mining industry sources said. The ministry of energy told mining companies they will pay 10.35 U.S. cents per kilowatt hour from January 1, up from 8.20 cents per kilowatt hour previously, one mining industry source told Reuters. "This would have been acceptable if it only applied to emergency power imports but…
Glencore, Vedanta Struggle Over Zambia Copper Mines Cuts
Glencore and Vedanta Resources' plans to slash costs at unprofitable copper mines in Zambia are facing strong resistance from the government and trade unions. The Confederation of Trade Unions of Zambia President Joe Kamutumwa said on Wednesday that Mopani Copper Mines, owned by Glencore, should be forced to surrender its mines to the government if the company pursues a plan to lay off workers. The union echoed comments by President Edgar Lungu who warned last week that…
Glencore Shares Up on Asset Sales
Mining and trading company Glencore said on Wednesday it was on track to reduce its debt thanks to asset sales and was making deeper cuts in copper output to support weak prices, sending its shares 6 percent higher. The stock ignored news from Zambia where President Edgar Lungu said he would not allow Glencore to lay off workers at its Mopani Copper Mine as it suspends production for 18 months, putting the miner's output cut plans in jeopardy. The London-listed company has come under pressure from investors and ratings agencies to cut its net debt of $30 billion…
Zambia's Zesco Aims to Double Electricity Cost
Zambia's state power utility Zesco Ltd has applied to the regulator to allow it to more than double the cost of electricity for all customers except mining firms to attract investors to build power plants, it said on Monday. Zambia's economy is likely to grow by less than 5 percent in 2015 due to a power crunch that has hit output from mining firms, already grappling with a slide in global copper prices. Zesco had also been compelled to increase the cost of electricity due to rising costs a depreciation of the kwacha currency, which had pushed up costs for imports, it said.
Zambia to End Power Tariff Subsidies for Big Firms
Zambia's government will stop supplying cheap electricity to large industries as Africa's No.2 copper producer battles a power crunch affecting its economy. The move away from subsidised electricity tariffs for large consumers will happen immediately, while state utility Zesco will source energy from private producers to plug the deficit, government spokesperson Vincent Mwale said. (Reporting by Chris Mfula)
Kenya's KenolKobil H1 2015 Pretax Profit Rises Up
Kenyan oil marketer KenolKobil said on Monday its first half 2015 pretax profit had risen 69 percent to $13.36 million as the cost of servicing its loans fell. It said in a statement total sales fell to 34.9 billion shillings from 43.2 billion shillings, while the cost of sales dropped to 31.9 billion shillings from 40.63 billion shillings. KenolKobil, which also operates in Uganda, Tanzania, Rwanda, Zambia, Ethiopia, Burundi, Mozambique and Democratic Republic of Congo, said finance costs fell to 379.5 million shillings from 669.33 million shillings.
Zambia to Import Power, Build New Plants to Stem Shortages
Zambia will begin importing power and push forward with construction of new generation plants to stem electricity shortages that threaten mining output, government spokesman Chishimba Kambwili said on Monday. Zambia's cabinet authorised state-run power company Zesco to import of 100 megawatts (MW) of electricity to ease a power deficit of 560 MW, Kambwili said in a statement. "Cabinet has explored the option of power-renting from ships docked at sea," he said. Zambia, Africa's No.2 copper producer…
Zambia Cuts Power as Dam Level Drops on Drought
Africa's second-biggest copper producer Zambia has cut its power generation by 300 megawatts after water levels in the Kariba dam, a key source of hydro power, dropped following a prolonged drought, its deputy minister of energy said on Tuesday. Charles Zulu said Zambia planned to reduce its hydro-power generation by up to 600 MW if water levels continued dropping. "Our generation capacity is 2,200 megawatts but now we have reduced to 1,900 megawatts," Zulu said. "There will be massive load-shedding (power rationing) and all of us…
