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Trade Winds weekly update volume 9

Collapse of mining, COVID-19’s impact on the mining industry locally and abroad has been devastating, Zambia has recorded a drop of 30% in mining revenue between February and April 2020 whilst South Africa suffered a plunge of 50% in mining revenue due to the Hard-Lockdown during April.

One of Zimbabwe’s top gold mines has halted operations blaming the country’s foreign currency policies, which requires the mine to surrender 30% of its forex earnings at a rate of 25 to 1 USD while suppliers are selling at 80 to 1 USD. The mine believes that they are achieving less than 80% of their gold sales compared to the international market.

“The impact of this situation on the Company’s operations has been that the Company is no longer able to meet its operational expenditure requirements considering that the company is required to pay for electricity and fuel in USD along with almost all of its consumables and spares also being denominated in USD,”

“The company has therefore been forced to stop production of bullion due to its inability to buy essential consumables and spares and is actively considering placing all its gold mines under care and maintenance until a viable solution is found.” the mine has said.

Steel Giants Fined, ArcelorMittal Limited South Africa (AMSA) which is Africa’s largest steel producer has been fined R3.6million for exceeding the minimum hydrogen sulphide emission standards. AMSA’s steelworks which is located in the Vaal Triangle, an Airshed Priority Area that was declared a priority area in terms of the National Environmental Management, whom has concerns about the elevated pollution in these areas.

According to departments minister Barbara Creecy, the money received from the fine would be used to install air quality monitoring instruments.

AMSA is currently producing over 5million tonnes of steel per year, supplying South Africa with over 61% of its steel as well as exports to Southern Africa and further north.

Lubumbashi Lockdown, this is due to a spate of coronavirus infections, however the lockdown is not expected to have any effects on Kasumbalesa itself, transporters should expect delays although word is that this lockdown is only affecting private transport.

“To see what is right and not do it, is a lack of courage.”