TEL: +27 (0) 11 622 0908
PHONE: +27 83 609 8064
info@abexsteels.com
Please specify the group

arcelormittal SA

Trade Winds bimonthly update volume 33

Biggest one yet!  ArcelorMittal SA has just recently given out notice of yet again another steel increase for the month of May, the increase sitting at a staggering R2,250.00 per ton is the biggest one yet.

This will now be the fifth consecutive increase this year with a possible positive outlook in the third quarter where prices are expected to drop.

Along with increased fuel, electricity and labour hikes this won’t be the end of the dark road within the steel sector.

With material being so scarce in South Africa and constant price increases, will SA still be an important game player within the steel sector? Only time will tell.

Border updates, there has been an increase in hijackings at the Beitbridge border post and with the latest developments, Ekhuruleni police officers have been implicated as accomplices.

The National Traffic Anti-Corruption Unit (Ntacu) has slammed the brakes on a traffic and police officers’ syndicate, which has allegedly been hijacking trucks on major Gauteng transportation routes.

The investigation is ongoing and more arrests can be expected. The suspects are expected to appear in court soon.

This seems to be the only burning issue of this nature across Southern Africa borders.

We would like to extend our deepest condolences to the family of the driver who tragically and unnecessarily lost his life in a robbery at Beitbridge recently.

Ever Given consequences being realised, not only has Egypt filed a multi-million pound compensation claim against the owner of the container ship but Suez Canal Authority has also estimated a $300 million bill for “loss of reputation” and an equal amount charged as a “salvage bonus”.

The responsibility for this massive mishap, that took at least 800 people and more than a dozen tugboats to correct, is now a ping pong between the Japanese vessel owner and the line operator Evergreen.

General Average (GA) was declared by the owner of the vessel which means that there is a potential of spreading the cost of significant expenses amongst shippers.

PowerChina hydro project delayed, work on the 2,400-megawatt facility had been scheduled to start in 2020, but yet another victim of the COVID-19 pandemic, this $4 billion hydropower plant has been suspended until towards the end of 2022.

This project awarded to General Electric Co. and Power Construction Corp. of China aims to ease electricity shortages to both Zambia and Zimbabwe will potentially be funded by domestic pension funds in Zambia and Zimbabwe.

Trade and Development Bank a Bujumbura which is a Burundi-based multilateral lender, has been appointed as the lead co-ordinator for financing the project.

A new coal player in Zim, Contango Holdings’ Lubu project in Zimbabwe, which comprises a substantial coking coal resource, ticks all the right boxes to deliver a financially lucrative business.

Lubu covers 19,236 hectares of the highly prospective Karroo Mid Zambezi coal basin which is located in the Hwange mining district in North Western Zimbabwe.

Historically, around US$20 million has been spent on advancing the project, including the completion of a pre-feasibility study, resourced modelling and mine planning with test work to confirm the presence of thermal and coking coal.

Contango started as a shell company looking to acquire a near-term production asset rather than an exploration asset, and this led to its interest in and purchase of Lubu.

Having reviewed multiple assets, it was determined that Lubu was a project that could bring into production quickly without the need for years of geological work to validate it. With extensive geological work completed, there was no exploration risk involved in the asset.

ZISCO seeking new investors, Zimbabwe’s state-controlled iron and steel company ZISCO has invited new investors to help revive operations at the company that has been the target of interest from Indian and Chinese investors in the past.

ZISCO acting chairman Martin Manuhwa said earlier this week that the firm was again looking for new investors interested in resuscitating the company.

The successful investor would be expected to contract out at least 35% of engineering, procurement and construction business to the local community.

ZISCO owns an iron ore mining unit with an installed capacity of 2.16 million tonnes of ore a year as well as a wire products company.

Interested investors should submit their expression of interest by April 30. Successful investors would then be invited to participate in the bidding process for the funding.

CATL to acquire stake in Kisanfu, Battery maker Contemporary Amperex Technology (CATL) will be acquiring a stake in the Kisanfu copper-cobalt mine in the Democratic Republic of Congo for $137.5m.

According to the agreement, CATL New Energy will acquire 25% in China Molybdenum (CMOC) unit KFM Holding, KFM Holding owns a 95% stake in Kisanfu mine while the remaining 5% stake is held by the DRC Government.

The deal is expected to provide CATL with access to what is claimed to be one of the world’s largest, highest-grade undeveloped cobalt and copper projects.

Hunger threat, Almost 1-million people face severe hunger in northern Mozambique, where hundreds of thousands have fled Islamist militant attacks, the UN food agency advised earlier this week.

Islamic State-linked insurgents in March attacked Palma, a town in Cabo Delgado province next to gas projects under development by companies including Total and Exxon. All work in the region has since come to halt as the threat levels are at its peak.

The World Food Programme has noted that 950,000 people are now hungry in Mozambique and has appealed to donors for $82m to confront the crisis.

It seems that that the world has finally opened its eyes as SADC leaders all met in Maputo to discuss a way forward and to determine the response required to fight off the insurgents.

Zimbabwean President Emmerson Mnangagwa said the meeting also agreed to revive a so-called SADC brigade to intervene in the conflict.

It is not confirmed that Mozambique has agreed that SADC forces would help the government fight the Islamic State-linked insurgency.

Under SADC rules, a member state must make an official request for the group to deploy the brigade.

SADC leaders are scheduled to meet again on April 29 to discuss the issue.

 

 

“Sticks in a bundle are unbreakable”

Trade Winds bimonthly update volume 28

Steel shortages continue!  The steel shortage in South Africa continues with rumours spreading that by mid year the sector should start to see an increase in steel levels as Mittal’s furnaces start to reach full capacity.

There is yet another steel price increase looming for the month of March totalling 8 consecutive steel increases over the past year into 2021 excluding December 2020.

ArcelorMittal SA announced last week that it will ramp up the production at its Vereeniging operation from half to full capacity, which is a direct response to a sudden increase in demand within South Africa and African overland markets.

The billet produced at the Vereeniging mill will be used for specialty input material to its Gauteng operations and various other mills across the country. It is expected to reduce the production demand from the Newcastle operation, which in turn will ensure more steel can be supplied to its long steel customers.

There is a base tariff protection on flat and long steel imports into South Africa of 10% and certain flat products are also subject to safeguard duty of 8%, which results in overall protection of 18% on certain grades.

Now with the hospitals requiring oxygen for COVID patients, this has thrown a spanner into the works for the steel sector, oxygen is in such short supply in South Africa that some companies are paying 30 times the usual going rate to keep critical equipment going and projects on track.

Companies with critical equipment that require oxygen were stretching what they have and rationing where necessary, in one case paying R4,000 for a bottle, compared to a usual price of R140.

Both Afrox and Air Liquide issued for majeure notices to customers in the face of what they said was a clear ethical and moral duty to prioritise supplies.

Industrial users have accepted that need, but say they hope to talk to suppliers about future supply crunches.

Livingstone closure sparks outcry, there’s been an uproar from opposition ranks of cross-border transporters ever since Zambia’s Road Development Agency decided to prevent road hauliers from using the Livingstone-Vic Falls border with Zimbabwe from March 1, as decision that has been on the cards for some time.

The reason for this decision is that the Zambian government feels that due to the bridge being a single lane carriage-way it’s affecting tourism in a negative way as most of the vehicles crossing are for road freight, which has been on the increase.

Essentially it means logistic operators into the Copperbelt in Zambia and the Democratic Republic of the Congo will have to cross the Zambezi at Kazungula, a treacherous ferry transit which is sparking concern from transporters as there has been cases in the past where trucks have slipped off the ferry due to safety measures not being followed. The decision is also particularly bad for hauliers based in Zimbabwe sending shipments to the Copperbelt.

The secret of Kazangula, months after the much-hyped Kazungula Bridge across Zambia’s touch-point with Botswana, Zimbabwe and Namibia’s Caprivi Strip was finalised, transporters are nowhere near knowing when the bridge will be handed over to the respective road authorities for use.

Word on the ground has been that the opening could be any day now, since the bridge’s lights were turned on in September last year, as if to signal that southern African logistics could be in for an early Christmas surprise but still to now, there is no concrete evidence as to when the bridge will be open for use.

There has been speculation that the necessary bilateral agreements between Botswana and Zambia haven’t been signed yet.

Its time the bridge is opened now especially since the announcement of the closure of Livingstone-Vic falls, this will aid in goods moving smoothly both north and south as well as faster turnaround times as transporters won’t have to deal with the ferry system.

Vedanta denied halt of KCM split, A Zambian court on Monday dismissed a motion by miner Vedanta Resources’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines (KCM) unit and selling the assets.

Vedanta has been in an ongoing dispute with the Zambian government since May 2019, when the Zambian government, which owns 20% of KCM through state mining investment firm ZCCM-IH, handed control of the mine to a liquidator.

Vedanta said the plan to split KCM is illegal, and would result in a substantial loss in revenue for Zambia.

In an announcement in December, President Edgar Lungu said KCM would be split into two subsidiary companies, KCM SmelterCo Ltd and Konkola Mineral Resources Ltd, which would be effective 1 February 2021.

While the split was delayed by Vedanta’s injunction order, it is noted that the two entities are expected to begin to operate soon.

Tanzanian assets revived, Barrick Gold reported last week that it had successfully revived its North Mara and Bulyanhulu gold mines in Tanzania with North Mara having significant improvements and underground production being restarted at Bulyanhulu.

Both mines produced close to the top of their production guidance in 2020 under Barrick’s first full year. The Tanzanian operations delivered a combined output of 462,472 ounces for the year.

During the fourth quarter, North Mara posted a record throughput while Bulyanhulu recommenced processing of underground ore, Bulyanhulu is scheduled to be in full production during the first half of 2021.

Barrick assumed control of these assets after re-acquiring Acacia Mining in September 2019. The company is now managing the mines.

Barrick is currently optimizing a 10-year plan to make the combined North Mara and Bulyanhulu mines its seventh tier-one asset by bringing them into the lower half of the industry’s cost curve. At the same time, the company continues to work on improving relations with its host communities.

Zimbabwe scraps indigenisation law, last week miners in Zimbabwe were worrying over an amendment to ownership laws that seemingly reintroduce the country’s controversial laws which were previously scrapped in 2018. The change in laws back then paved the way for foreign owned entities to rightfully hold up to 100% ownership of a mine.

However, the wording of this amendment was unequivocally flawed, leaving it very much open to interpretation. In a joint statement issued by the ministries of finance and mines it was claimed that “last weeks’ notice may have caused some misconception to some inventors and other stakeholders in the mining sector”

Coincidentally, whilst this has captivated the attention of many, it has come to light that the Zimbabwean government has granted mining entity Great Dyke Investments a five-year tax exemption. In a notice, deemed to have come into effect from 1 January 2020, it is stated that “the receipts and accruals of Great Dyke Investments (Private) Limited, as per the Special Mining Lease Agreement signed between the Government of Zimbabwe and Great Dyke Investments (Private) Limited are approved”.

Nigeria to aid Mozambique in terrorism fight, Nigeria has offered to support Mozambique in its fight against Islamist insurgents in the gas-rich northern province of Cabo Delgado. Nigeria joins a list of numerous African and international countries offering aid to the terrorism rife region.

More than 2,000 people have been killed and more than 500,000 others displaced in the violence, according to the International Committee of the Red Cross.

It is said that Nigeria is ready to share its experience of fighting Islamist militants and provide support to Mozambique. But observers will question whether it’s best placed to offer advice, given the continued insecurity in Nigeria.

Mozambican President Filipe Nyusi urged the defence and security forces to fight hard against terrorists in the province of Cabo Delgado and against the Renamo Military Junta in central Mozambique.

Nyusi also urged those who have joined terrorist organizations and armed rebel groups to surrender, disarm, demobilize and reintegrate into the society.

Happy New Year! Abeyla Exports would like to wish our Chinese customers a happy new year with many blessings for the year ahead!

 

“Knowledge without wisdom is like water in the sand”

Trade Winds bimonthly update volume 25

Steel price increase!  With the current steel woes South Africa is facing, there is a steel increase on the cards for January 2021, so far two major mills have announced an increase across the board of around 3-6% on all products whilst the industry anxiously awaits an announcement from ArcelorMittal.

So far the steel shortage situation remains the same as we eagerly await Mittal’s furnaces to fire back up early next year.

There are also concerns coming from the Manufacturing and Engineering sector that the possible 10% electricity hike for next year could be detrimental to the revival of the sector.

Border updates, there has been a complete U-turn at Beitbridge, following for the previous positive update, Beitbridge is once again bottlenecked.

The southbound queue of loaded and backhaul trucks heading out of Zimbabwe to South Africa is again being snagged by bottlenecking at the Beitbridge Border Post. Zimra has said that they are doing everything in their power to relieve the congestion. So far the northbound queue is clear.

South Africa’s Skilpadshek Border Post which is on the Trans-Kalahari Corridor (TKC) through Botswana continued to be affected by slow coronavirus testing procedures this morning. According to the Transit Assistance Bureau, the building backlog at the border stems from Botswana’s inability to cope with the testing of truck drivers for Covid-19.

A decision taken last month to not test drivers coming from South Africa who are in possession of a polymerise chain reaction (PCR) negative test result which is not older than 72 hours has not had the impact they thought it would have on easing congestion.

The notion that Botswana seems incapable of coping with capacity requirements for testing drivers not in possession of PCR results only serves to support criticism that the country’s inflexible Covid-19 testing regimes are impeding its strategic logistics position in the sub-Saharan region.

In the meantime, transporters using the TKC to get to Namibia are increasingly avoiding the corridor, preferring instead to bypass Botswana altogether which in turn has bottlenecked the Nakop Border post in Namibia.

Container rates soar, exports from South-East Asia have recovered fast from the COVID-19 pandemic however the shipping costs have climbed drastically.

This is due to a high demand and no supply as trade routes have been interrupted by the pandemic. Shipping lines are also taking advantage of this by using the peak season surcharge as a reason.

The cost of putting one container on a ship can cost in the region of $5,000.00 up from an average of $1,300.00 earlier this year.

It is expected that the current rates will continue into early to mid-next year.

Rio Completes Copper Project, Rio Tinto has completed the initial work on the Midnight Sun Mining’s Solwezi Licenses in Zambia.

After incurring project expenditures in excess of $3 million during the initial work phase, Rio will now proceed to the next stage of the agreement.Top of Form

This would allow the company to earn a 51% interest in the Solwezi licenses by spending a further $16 million on the project within four years, as well as by making cash payments to Midnight Sun.

The project is situated on the Zambia-Congo copper belt and is immediately adjacent to Africa’s largest copper mining complex, First Quantum’s Kansanshi mine.

Zambia in negotiations with IMF, Zambia has just begun negotiations for financial support from the International Monetary Fund. The IMF announced this in an official statement

This announcement comes at a time when the Zambian economy has been declining due to several years of crisis. Drought, difficulties in the mining sector, and rising debt had pushed the country to adopt austerity measures in recent years to cope with the situation. However, the covid-19 pandemic that has plagued global economic activity has contributed to the accelerated decline of the Southern African country’s economy.

Great Dyke Sells Stake, Great Dyke Investments who is planning to build Zimbabwe’s biggest platinum mine, has sold a 4.4% stake to Fossil Mines as Covid-19-disrupted fundraising for the venture.

Fossil, which is Zimbabwean owned, will invest $30m in the Darwendale project, through a combination of cash and services, including engineering, procurement and construction. That leaves Vi Holding and Zimbabwe’s Landela Mining Venture each with a 47.8% stake. The sale values Great Dyke Investments at $680m.

The covid-19 pandemic has delayed fundraising for the project, which was originally due to be completed in 2020. Financing of $665m is now expected to be finalised in the first quarter of 2021.

The Darwendale project has the potential to become one of the world’s biggest platinum mines and its development is central to the Zimbabwean government’s plans to reboot a collapsing economy.

Zimbabwe has the world’s third-largest platinum group metal reserves after SA and Russia.

Millions lost to illicit mining, Zimbabwe continues to lose millions of revenue in illicit gold mining, In Mazowe, 40 km outside the capital Harare, artisanal miners have broadened their search for gold ore as they continue digging the soil underground in some cases to over 50 metres deep. Some artisanal miners are receiving up to $40 per gram of gold.

According to government statistics, the bulk of the gold is extracted by artisanal and small-scale miners who are responsible for 63% of the recorded production. In most cases, the artisanal miners operate illegally and do not sell the mineral to the state-owned buyer.

Trucker violence on the down, following from the last report, it seems police and other law agencies have managed to clamp down on the truck attacks. Currently there has been no news of any attacks over the past week. Hopefully this will remain.

Kamoa-Kakula stockpile building up, Ivanhoe Mines has announced that underground development at the Kamoa-Kakula copper project, in the Democratic Republic of Congo, produced a combined 250 000 t of ore, grading 4.85% copper, in November.

The tonnage from the Kakula and Kansoko mines is 29% higher than the volumes achieved in the previous month whilst the grade of copper also increased month-on-month from 4.01% to 4.85%.

The project’s surface stockpiles now contain about 1.25-million tonnes of high-grade and medium-grade ore, which has an estimated grade of 3.75% copper and is on track to have around three million tonnes of high and medium grade ore stockpiled prior to the planned start of production in July 2021.

The Kamoa-Kakula’s first phase involves mining and milling 3.8 million tonnes of ore a year, whilst a concentrator that is expected to handle the same amount of volume is currently being built.

US Support counter-terrorism, The United States is not considering sending troops to Mozambique to combat the terrorist threat in the northern province of Cabo Delgado, but are willing to aid civilian counter-terrorism capabilities.

The United States wants to be Mozambique’s security partner of choice in strengthening border security and in strengthening its capacity to counter terrorist activity.

Terrorists in the northern Mozambican province of Cabo Delgado are apparently dying daily as the Mozambican police have managed to cut out their supply system. It is also noted that the defence force managed to block out an insurgent attack on Maputo as well as neighbouring cities.

There is also concern that the terrorists are using a port or aerodrome in Cabo Delgado to move drugs and guns into the country. However the Cabo Delgado coast and offshore islands are under the control of the Mozambican authorities

Earlier this week Islamist militants attacked and occupied a northern Mozambican village in their closest raid yet to a giant gas project. The assault came late Monday night on the village of Mute, some 20 kilometres from the Afungi peninsula which is the centre of a multi-billion-dollar scheme to build a liquefied natural gas plant in Cabo Delgado province.

The attackers targeted government soldiers in the village and torched homes.

The attack has raised concerns about security at the Afungi peninsula, where the French energy major Total and the United States’ Exxon Mobil are among the investors.

Air force reinforcements from Dyck Advisory Group have been deployed from Pemba to bolster up government troops seeking to retake Mute.

 

 

“However long the night may last, there will be a morning”

Trade Winds bimonthly update volume 24

Steel shortages continue!  South Africa’s steel woes continue with a bleak output on the horizon, capacity is at an all-time low with manufacturers and stockists battling to deliver and the continuous steel increases further damaging the sector.

The Steel Giants have put out notice of restructuring at its Newcastle facility expected to result in significant job losses of around 2,500 workers.

On a positive note, furnaces at Mittal’s two plants in South Africa are on schedule to be fired up early 2021.

Joining the band wagon, South Africa is imposing export taxes to either collect more revenue or modify the flow of goods across borders.

The Customs and Excise Duty Act has been amended to allow the minister of finance to impose an export duty whenever he sees it beneficial in the public interest. The amendment is expected to be effective March next year.

South Africa will also be introducing an export tax on scrap metal. There’s been talk about a 30% export tax on chrome and further export duties on iron ore as well as leather and maize. No implementation dates have been announced.

The export tax on Chrome has come as a shock and many of the domestic producers have frowned upon this and fear that this will backfire on the country.

Border updates, Beitbridge border post is now business as usual, little to no delays are being experienced currently.

Congestion at the crucial Chirundu Border Post between Zimbabwe and Zambia has been cleared following the bottlenecking of trucks on the northbound journey into the Copperbelt. The intermittent spike in volumes crossing the Zambezi at Chirundu was due to increased cargo coming through from the Port of Beira in Mozambique.

It was noted that the commodity coming from Mozambique was fuel. This was a result of the Zambian government deciding to issue a statutory instrument which ordered that 50% of freight in Zambia be reserved for local transporters, the country had found itself running short of essential cargo like fuel.

The Zambian government then set aside a three-week period that would allow other transporters to deliver fuel as the Petroleum Transporters Association of Zambia couldn’t keep up with volume requirements which in turn triggered a spike in cargo from the landlocked nation’s closest neighbouring port, Beira.

As cross-border road hauliers wait to hear from Zambia’s and Botswana’s transport authorities about when the completed Kazaungula bridge across the Zambezi will open, another truck has slipped off the pontoon into the mighty river’s depths.

It’s the second rig that has rolled off a ferry at the important crossing which is still served by three pontoons while the bridge, already finished in September, sits unused in the background.

It remains anyone’s guess as to why there’s such a holdup to open the bridge.

Trucker violence surges! on the night of 20th November 2020, 10 trucks were attacked and torched on the N3 in South Africa, this attack marks the single biggest attack on the country’s main supply route between Gauteng and the Port of Durban. Just a few days later another truck was attacked and earlier this week a truck driver was shot and burnt to death in his cabin, throughout the week there has been various attacks on trucks with the latest one coming just last night where a driver was shot at from both sides of his vehicle but luckily managed to flea just in time before his truck was torched.

The attacks are allegedly backed by the All Truck Driver Foundation (ATDF), a vigilante group opposed to foreign national truck drivers working in South Africa’s transport sector. ATDF has said that the attacks on transporters stem from employers in the sector allegedly favouring foreign nationals because they are paid less and are exploitable because many don’t hold valid work permits.

Earlier in the year ATDF threatened to embark on a strike that would cut off the Durban to Beitbridge corridor, however there was a court interdict and the protest never took place.

The Cross-Border Road Transport Agency (CBRTA) has added its voice to pleas that transporters consider not working at night, thereby hopefully diminishing the life-threatening situation in which truck drivers find themselves as the violence targeting South Africa’s freight industry drags into its sixth day.

Ducking and diving, Deputy Gauteng Police Commissioner, Major General Daniel Mthombeni, circumvented the issue as industry stakeholders demanded concrete action to address the growing insurrection in the road freight industry.

He told attendees at a meeting held in Alberton yesterday that arrests had been made earlier this week and called for the establishment of a forum. Members of the industry however made it clear that a few arrests were not enough.

Transport and security companies said that they were aware of the ‘hot spots’ and asked why police visibility in these high-risk areas was still so poor and why there weren’t any functioning cameras on major highways.

A security company representative said on many occasions he would call the police to ask if certain routes were safe but even the police were unsure most of time.

Great Dyke making progress, Great Dyke Investments who has been pinned as Zimbabwe’s next platinum giant is ahead of schedule in boosting Zimbabwe’s platinum exports by 2022. According to the mine’s chief operations officer, Mr. Munashe Shava, extraction which commenced earlier this year will tally with the company’s projections of exports by 2022.

The Great Dyke Investments mine in Darwendale which follows Zimplats and Unki mines and is one of the new investments is expected to help the country reach a US$12 billion mining industry by 2023.

GDI is 50 percent owned by Russia’s Vi Holding, and 50 percent owned by Zimbabwe’s Landela Mining Venture. The project has an excess of 180 million tonnes of ore containing 17 million ounces of platinum group metals and gold, with an average grade of 2,93 grammes per tonne.

The mine expects to start contributing to the country’s gross domestic product by 2022 although it has already contributed to the country’s fight against the Covid-19 where it supplied local health institutions with machinery and PPE.

DRC to formalise Artisanal Mining? EGC and Trafigura signed an offtake agreement in a bid to formalise artisanal and small-scale cobalt mining in the Democratic Republic of Congo.

The trading agreement includes the provision of finance by Trafigura to fund the creation of strict, controlled artisanal mining zones, installation of ore purchasing stations as well as the costs related to the transparent and traceable delivery of cobalt hydroxide to Trafigura on an export cleared basis.

Under the supply terms, EGC will ensure that the ore marketed by Trafigura complies with OECD Due Diligence Guidance.

Earlier in the year Glencore made a U-Turn and also decided to back artisanal mining of cobalt. The group aims to end child labour in the cobalt mining sector and to improve the working conditions in Congo.

Almost three quarters of the world’s cobalt comes from Congo where Glencore owns two of the largest mines. Demand in cobalt is expected to surge in the coming years as the sales of electric-vehicles are said to take off.

Zambia’s copper output increases, Zambia who is Africa’s second-largest copper miner, produced 646,111 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year.

The Southern African nation now expects total production for the year to reach 820,000 tonnes, driven by rising copper prices.Bottom of Form

 

This comes as good news to Zambia, who is the first African country to default on a bond payment during the covid-19 pandemic by missing a $42.5 million interest payment on part of its international debt.

Zambia’s mining sector has been in the spotlight as the country’s financial situation deteriorated this year which prompted Glencore to shut its Mopani Copper Mines operation.

With that being said, the Zambian government has advised that negotiations with Glencore regarding increasing the government’s stake in Mopani were nearing a conclusion. No information has been given out about the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire was given.

Tanzania to join in fighting terrorism!  Tanzania’s government says is teaming up with Mozambique to launch a joint operation against violent attacks by Islamist militants along their shared border.

Several recent attacks blamed on Islamist extremists have targeted the border village of Ktaya in Tanzania’s Mtwara region.

Police say more than 175 houses were set on fire and some people were killed by assailants, who, authorities say, fled into neighbouring Mozambique.

Tanzania has already increased security along the border and it is now joining forces with Mozambique to contain what it calls terrorists.

Some opposition parties and rights groups are raising concerns about how the Tanzanian government plans to tackle the threat.

Tanzania becomes the 4th country that has pledged their allegiance in fighting the terrorist scourge, Britain, Zimbabwe and South Africa have voiced their aid however we are not seeing any troops headed to Mozambique.

Some Zimbabwean citizens are concerned about soldiers going into Mozambique, fearing that, that would encourage terrorists to infiltrate their country.

 

 “For tomorrow belongs to the people who prepare for it today”