6th February 2024
Zambia Eyes Direct Copper Trading
Zambia plans to directly engage in copper trading, competing with major players like Mercuria and Glencore. The move aims to ensure fair and commercially suitable dealings, allowing the government to access a fair share of the resource and make financing available for mines. The government, aims to build its trading business, with legislation ready in the next three to six months. Meanwhile, mining startup KoBold Metals, using AI for exploration, discovers a significant copper deposit in Zambia. The San Francisco Bay Area-based company, backed by Bill Gates, Jeff Bezos, T. Rowe Price, and others, has drilled at its Zambian permit for over a year. KoBold President Josh Goldman notes the potential of the Mingomba deposit, comparing it to the successful Kakula mine in the Democratic Republic of Congo, which produced nearly 400,000 tons of copper last year.
Nigeria Clears Forex Backlog
Nigeria is clearing a backlog of foreign-exchange contracts that have pressured the naira, according to Central Bank Governor Olayemi Cardoso. The recent slump in the naira was due to measures aimed at unifying official and unofficial foreign-exchange markets. The central bank aims to stabilize the currency, with analysts optimistic about recovery as oil output increases and the central bank addresses the FX backlog. Cardoso believes that resolving these issues will attract foreign investors, emphasizing that the naira is undervalued. The backlog of foreign-exchange contracts has been reduced to around $2.2 billion.
South Africa's PGM Industry Mulls Restructuring
South Africa's platinum group metals (PGM) industry is considering restructuring due to rising costs and falling prices, potentially leading to 4,000 to 7,000 job cuts, according to the country’s Minerals Council. The sector, heavily reliant on PGM use in automakers to reduce exhaust emissions, faces uncertainty as the world shifts towards electric vehicles. Electricity and labor costs constitute the majority of PGM miners' total expenses. Falling palladium and platinum prices, down 40% and 15% last year, respectively, contribute to the challenging environment. Major PGM miners, including Anglo American Platinum and Sibanye Stillwater, are reviewing costs and restructuring.
Malawi Raises Benchmark Interest Rate
Malawi's central bank increased its benchmark interest rate by 200 basis points to 26.0%, aiming to counter inflationary pressures and restore price stability. The decision by the Monetary Policy Committee (MPC) comes as inflationary pressures intensify, with the expectation that inflation will persist before declining, according to the Reserve Bank of Malawi.
