ARTISANAL MINING
SOUTH AFRICA: An artisanal mining pilot program in South Africa’s diamond town of Kimberley has hit headwinds after a series of clashes and attacks from artisanal miners excluded from the program. The program undertaken by Ekapa Minerals and Petra Diamonds had granted 836 ‘zama zama’ through their cooperative (Batho Pele Mining Cooperative) the right to mine in 1,500 acres of diamond waste fields. South Africa has no framework in law that caters to artisanal miners. The Minerals Council estimates about $1.5 Bn is lost each year to illicit mining and mineral trading http://bit.ly/EkapaZam
ZAMBIA: One illegal miner was shot dead by the police in the Mwinilunga District of the North Western Province of Zambia. Villagers neighbouring the Kasenseli Gold Mine attempted to invade the mine to carry out illegal activities but were rebuffed by the police. http://bit.ly/Mwinilunga
MINING
ZAMBIA: The Africa Development Bank has announced that it has set aside $700 MN to support the diversification of the Zambia economy through the private sector in the agricultural, energy and mining sectors. AfDB president Akinwumi Adesina made the announcement when he met President Edgar Lungu. Zambia pledged to focus on solar energy in this support to counter the country’s power deficit. Zambia is presently importing power from South Africa’s Eskom at a cost of $44Mn. The low power supply has also forced mining companies to import their own power. http://bit.ly/AfDBZam
UGANDA: Kampala Cement, Tororo Cement and Simba Cement face suspension of their limestone mining after members of the Ugandan Parliament called for the halting of operations within the districts of Bulambuli and Kapchorwa following complaints by locals. http://bit.ly/UGlimestone
ZAMBIA: Barrick Gold is bullish on copper and now considers it as strategic. The company which owns the Lumwana Copper Mine in Zambia is reported to be looking to grow its copper business through exploration or acquisition. With $5BN in available liquidity there’s truly a case for the move http://bit.ly/BarrickCU
OIL & GAS
UGANDA: Uganda’s Minister for Energy and Mineral Development Eng. Irene Muloni has announced a further push in oil production target from 2021 to 2023. In addition, the Minister announced a developing partnership with the South Africa in oil and mineral exploration and investment in the development of the oil pipeline by Uganda. Uganda is also preparing for a second round of licensing with 5 blocks on offer for competitive bidding in Avivi, Omuka, Turaco, Ngaji. Kasurubani and Turaco and Ngaji http://bit.ly/2Q6fd4m
UGANDA: President Museveni has issued an ultimatum of a month for the oil firms Total E & P, China National Offshore Oil Company and Tullow to consider a raft of Government proposals aimed at kickstarting the development of the Kingfisher and Tilenga Oilfields. The contentious items include the capital gains tax assessment against Tullow by Uganda Revenue Authority , recovery of costs by the companies before payment of tax, domicile of the crude oil pipeline company and the issuance of block work permits. http://bit.ly/2O1w71u
UGANDA: In a veiled speech at the Africa Oil Week in South Africa, it seems Tullow CEO Paul McDade believes that some African governments need to get quicker when it comes to decision making. “…where we don’t get those decisions made, the value erosion that can occur and the loss of potential and positive impact on both the country and the communities.” He termed the Kenyan Government as being flexible when it came to decision making, “We are working very hard in Kenya at the moment trying to move the onshore project forward, and we have seen that flexibility from the Kenyan government.” http://bit.ly/2KaMDLu
KENYA: Tullow has made an appeal on a $50M tax demand from the Kenya Revenue Authority that arose out of the 35% transfer in interests in Block 12A to UK based Delonex Energy. http://bit.ly/2QbzR2U
KENYA: The National Oil Corporation of Kenya has put up for sale KES 566 Million ($5.66mn) worth of assets. They primarily constitute petrol stations spread across the country. The tender document can be downloaded here: http://bit.ly/34KVuv8
SOMALIA: At last weeks Africa Oil Week, Somalia’s Minister of Petroleum and Mineral Resources, Abdirashid Mohamed Ahmed stated that the country is ready to present 15 offshore exploration blocks for licensing that are expected following seismic data collection done by Spectrum Geo. The blocks are estimated to hold hold a combined total of 30 billion barrels of oil. The first licensing round is expected in late December 2019. This is expected after Parliament passes the draft Petroleum Law http://bit.ly/2NDXv6r
REPUBLIC OF CONGO: The third largest producer of crude oil in Sub Saharan Africa had a hard time bagging interest for 5 onshore blocks within the Curette basin that were on offer at the Africa Oil Week. The Republic of Congo has a total of 15 blocks on offer under an open-door policy. http://bit.ly/2pbGZ4r
SOUTH AFRICA: The country plans to to have a petroleum law by June next year. The Petroleum Resources Development Bill is expected to be presented before Cabinet ‘soon’ setting the stage for approval by Parliament according to Gwede Matanshe, South Africa’s Minister of Mineral Resources & Energy http://bit.ly/2O1DMg4
MOZAMBIQUE/SA: Low carbon gas is the new emerging trend being touted by both Governments and oil majors as the path towards lower carbon emissions. South Africa plans to minimise its dependence on coal to 60% from 77% currently buoyed by the investments by majors in gas blocks. “The reality is, on the African continent, there is still a very big reliance on fossil fuels which we can’t necessarily get away from,” said Shirley Webber, the head of natural resources at African banking group Absa. http://bit.ly/2pbGZ4r
FINANCE
MOZAMBIQUE: African governments have been urged to model after Mozambique in the manner they manage their regulatory environment by providing capital stability so as to spur investment in the extractives sector. “The government of Mozambique had a very good vision when its resources were discovered. It put in place a decree law that was designed to facilitate investments. It is what investors want—investors need stability and they need consent. That is the only way that long-term capital flows into the projects of this nature.” Katan Hirachand, co-head London, energy advisory & finance, at bank Societe Generale. http://bit.ly/2NX9QS8
TRADE & INFRASTRUCTURE
UGANDA/DRC: The Presidents of Uganda and the DRC have agreed to build three roads that are deemed to critical towards the improvement of trade between the two countries. 1. Goli-Mahagi-Bunia Road 2. Mpondwe-Beni Road 3. Bunagana-Rutshuru-Goma http://bit.ly/2rDqChV. The President’s have earmarked the projects to commence within 24 months. The region of Goma is a significant gold trading area and such infrastructure would greatly enhance trade between the two nations
Contact the Curator:
mwakesi@extractiveinsight.com +254 723 229117
