According to preliminary data from the International Copper Study Group (ICSG), world copper mine production for the first nine months of 2020 fell 1%, with concentrate production declining by 0.8% and solvent extraction-electrowinning (SX-EW) declining by 1.5%. The report highlights that global mine production ebbed 3.5% in April-May 2020 period, as these two months were the most affected by the COVID-19 related global lockdown that resulted in temporary mine shutdowns/reduced production levels. However, world mine production started to recover in May as lockdown measures eased and the copper industry adapted to the strict health protocols. Some key drivers of the…
Author: The Editor
Being the first African nation to default on a coupon payment on its dollar bonds in COVID era, amidst economic woes, the continents red metal hot spot Zambia, grapples with rising input inflation fueled by an acute currency rout and rising international crude prices. Being Africa’s steepest currency slide in 2020 by a 43% margin, the Kwacha depreciation against the dollar has precipitated cost push inflationary effects which has continued to wane manufacturing pulse for most key players such as those in the cement and quary mining. Read also: Kwacha ‘bears’ and industry ‘festivity’ hibernation eludes Zambia’s attainment of the…
In the labyrinth of litigation risks, the recently announced Konkola Copper Mines (KCM) restructure into a smelter and mineral resource business has suffered a snag after a Zambian High Court issued an ex-parte order in favor of Vedanta the majority shareholder in the entity. Earlier in the year KCMs liquidator had announced a re-organizsation that would see the business split into Konkola Smelter Company Ltd and Kokonla Mineral Resources Ltd. Read also: Konkola Copper Mines restructure under the ‘shadow of arbitration’, as Zambian govie sends stern signal However because the restructure was announced in a period where the parties where…
Mines Minister in Africa copper producer Zambia, Richard Musukwa on November 20, announced that the Zambian government had decided to fully take over Mopani Copper Mines (MCM) by purchasing Glencore Corporation and First Quantum Mineral’s (FQM) combined 90% stake in the mine. Prior to this, government’s shareholding represented by ZCCM-IH (a mining investment vehicle) in the mine was 10%. Specific details on the transaction remain vague. However, the clearest statement on the deal so far is from Minister Musukwa’s speech on the transaction (pdf available here). In this hurriedly written post, I want to recount the main points of the transaction…
Now that Africa’s second largest copper hotspot Zambia has acquired Mopani Copper Mine (MCM) after sealing a deal with Glencore Corporation and First Quantum Mining (FQM) involving 90% of combined shareholding, the Southern African nation will now seek to attract a strategic partner in running the mine. However Zambians still remain eager to know the next steps on mine operation post acquisition. Below is an extract of the mines Ministers speech at a briefing in Lusaka the capital: “A phase two which will see the attraction of a strategic partner that will acquire a stake in Mopani,” Musukwa said. The…
Africa’s second largest copper producer Zambia, has penned a $1.5billion deal with global commodities giant Glencore Corporation over the sale of its stake in Mopani Copper Mine. This follows a rigorous yet fruitful dialogue process between the Zambian authorities represented by ZCCH-IH Plc the mining investment vehicle and Glencore corporation. Glencore had in April 2020 announced intentions to place Mopani under care and maintenance, however Zambian authorities had countered this business review intention because it would have meant 15,000 miners and contractors out of jobs in difficult times. Read also: Zambia rejects Glencore’s 24-hr notice to place Mopani operations on…
Zambia currently grapples with a backlog of foreign currency orders manifesting in dollar scarcity as a consequence of acute supply and demand mismatches. The copper producers currency, the Kwacha was on a losing streak in 2020 shaving 43% of value. Currently trading north of 21.3 for a unit of dollar, in the midst of a falling reserve buffer to decade lows of $1.35billion representing below 2.5month of import cover, the red metal hotspot faces rising dollar demand in excess of green back supply accelerating the pace of depreciation. The backlog in foreign exchange supply is disrupting stable petroleum supply leading…
The central bank in Africa’s red metal hotspot sold K1,793million ($84.2million) worth of treasury bills in the debut sale of 2021 held on Thursday January 14. Given an appetite in excess of two yards in Kwacha terms, the Bank of Zambia (BOZ) was able to absorb 81.7% of demand given a market liquidity position of K1.3billion with maturities in the pipe line. BOZ had K1.3billion assets on offer. The highest market appetite was observed in the one year tenor of K1.83billion of which K1.45billion was locked in at 25.75%, the most lucrative point on the yield curve. Other tenors saw infinitesimal…
Africa’s copper producer Zambia has named London based communications advisory firm Highgate Ltd to manage its debt restructure correspondence for 6months. According to a press release by Ministry of Finance signed by Secretary to the Treasury Fredson Yamba, the copper producer, Highgate Advisors have been named for 6months for a GBP333,403.54. Earlier in June 2020 Zambia had named French Investment banking firm Lazard Freres and later on White & Case LLP legal advisors following commencement of a debt restructure process, a condition that Washington based lender has posed to the Southern African nation to commence any meaningful bailout discussions. Zambia…
Being the first African nation to default in COVID era after skipping a $42.5million coupon payment on a dollar bond maturing 2024 in 4Q20, the continents second largest copper producer Zambia is in the labyrinth of both an economic and a health crisis. Like the rest of the world, the Southern African nation faces rising epidemiological risks in a second COVID infection wave surge which is more stringent and deadlier than the first wave. Health authorities have attributed the exponential spike in cases to super spreader events such as social outings especially during the festive period when citizens slackened in…