February Updates Mining
Mining Investment Expected to Soar in 2018
2018 is expected to be an incredibly sanguine year for the mining industry. With the help of China’s strong demand raising the commodity price, the sector is expected to make a solid contribution to the annual gross domestic product (GDP). This positive forecast has also resulted in a strong pipeline of investments due to growing investor confidence. Increase in investments is also due to a more stable political climate and new mining charter and policies.
Zambia: Zambian mining is forecasted to have a very productive year with copper prices rising above $7000 per tonne, thus resulting in more revenue for the country. This coupled with favourable political conditions have led to an influx in investment and production. Weatherly International acquired the Kitumba copper project in Zambia and will be focussing on a high-grade and high-confidence Phase 1 development zone within the resource. Japan has also proposed to Zambia to invest around US $2 billion on the development of infrastructure and setting up industries in Zambia for mining of rare-earth, a key component in manufacturing of electronics. Canadian based diversified industries corporation, Maxtech Ventures begins Manganese research in Zambia. Konkola Copper Mines also aiming to lift copper production to 500,000 metric tonnes per annum due to huge investments by Vedanta Resources Plc and the current positive market fundamentals.
Zimbabwe: The government is focussing on the mining sector as it is the main engine of growth and revenue generator of the country. Currently, mining accounts for 50% of the country’s earning and the long term future looks brighter with the sustained commodity price increases, reduced costs combined with new technology trends. ZIMBABWE is expected to be one of the major global players in the production of processed lithium, a main component in the manufacturing of electric car batteries. Prospect Resources are aiming to start extraction and processing the mineral in 2018.
Democratic Republic of Congo: Congo is also doing very well in the mining sector with the country’s copper production rising by 9% and cobalt and gold rising by 18% and 5.7% respectively. Glencore has begun to ramp-up output across its Katanga operation. ‘The Swiss miner is flagging a big increase in cobalt production as one of its biggest copper mines restarts with the production of 2,200 tonnes of copper cathode by the end of December as the new whole ore leach processing project was commissioned. Full capacity production is expecting 39,000 tonnes of copper while cobalt output could rise to as much as 20,000 tonnes by 2019.’ (http://www.proactiveinvestors.co.uk/columns/sp-angel/29349/morning-view-drc-cobalt-production-surges-as-major-mine-restarts-29349.html)
Côte d’Ivoire: Côte d’Ivoire is definitely at the forefront as a West African investor-worthy destination. The mining sector has been growing steadily in the country with the following minerals: gold, manganese, iron ore, nickel and bauxite. The country’s strong project pipeline will be a key driver of gold production growth over the coming years. Manas Resources Limited has entered into agreements to acquire 85% interest in the Gonsan Project and 80% in the Bouaké Nord Project.