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Friday, 21 March 2014

Mining Developments, 2nd Edition

Gemfields Plc, producer of about a fifth of the world's rough emeralds, says revenues from its February auction in Zambia were a record $36.5 million. The February auction of rough emeralds and beryl was the fourth to be held in Lusaka in the last 12 months. Gemfields has been lobbying GRZ to extend its emerald auctions beyond the country, without success [`Source : Reuters]

Chinese owned Non Ferrous Africa Mining Corporation (NFCA) has committed US$100 million in this year's financial budget towards the development of the South East Ore Body Mine (SEOB) in Chambishi as it seeks to expedite the project. The project when completed, will create more than 5,000 jobs. NFCA's planned investment in the development of the SEOB was US$830 million and that by last year, the company had injected in a total of $123 million [Source : Times of Zambia]

DRC last year probably surpassed Zambian output for the first time since 1988, making it Africa's biggest producer, according to CRU Group. Congo allegedly produced 846,000 metric tons of the metal in 2013, about 2 percent more than its Zambia, according to preliminary figures. Both countries have scope to more than double volumes in the next decade, so the game is on! [Source: Bloomberg

Lubumber Copper Mines (LCM) in Chingola increased its annual production by more than 7,000 tonnes in 2013 to reach a total capacity of 10,567 tonnes. South Africa's African Rainbow Minerals (ARM) owns Lubambe, alongside Vale who have a 40 per cent stake in the mine, while ZCCM-IH owns 20 per cent shares. [Source : Times of Zambia

AUTHOR
Chola Mukanga | Economist
Copyright © Zambian Economist 2014

1 comment:

  1. The investment by the Chinese miner tends to suggest that they see more copper extraction as worthwhile. It would mean that they perceive continued demand from the home country over the next years to justify this investment. It may not mean that on a profit on loss basis but only as a strategic commodity which their nation will need no matter at what price. They will extract it even if the price is low because it is needed by the country to which they belong.

    Difficult to think they would invest so much without knowing that.

    Alternatively it could be the events are so recent that they have not had time - like Fitch in the other post - to react to them and change tack.

    ReplyDelete

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