VenturesNow

Mining: Guinea gives multinationals ultimatum, build alumina refineries or face ‘penalties’

Published

1 year ago

April 10, 2022

The interim government of Guinea has asked international mining companies to submit project proposals and a “precise timetable” for the construction of alumina refineries to the mines ministry by the end of May 2022.

The junta leader Mamady Doumbouya, announced the ultimatum during a hearing with company representatives broadcast on state television late on Friday.

“The respect of basic agreements remains non-negotiable for us,” Doumbouya said.

“You and I can no longer continue this fool’s game that perpetuates great inequality in our relations,” he added.

Guinea, which is the world’s second-largest bauxite producer, in the move to channel its mineral wealth into economic development, pressuring companies in recent years to commit to building local facilities that will refine bauxite into higher value alumina.

Bauxite is the most common ore of aluminium. Extraction of aluminium metal takes place in three main stages: mining of bauxite ore, refining the ore to recover alumina, and smelting alumina to produce aluminium. Other raw materials are mined as aluminium ore, but their use is minor compared with bauxite.

Doumbouya also added that “penalties” would be placed on mining companies that fail to provide project proposals and the precise timetable for the construction of refineries before the May 2022 deadline.

Since it came on board in September, the junta has toughened its stance towards multinationals, In March, the junta ordered the cessation of all activities at the massive Simandou iron ore deposit owned by Rio Tinto and a Chinese-backed consortium, saying it was seeking clarification of how Guinea’s interests will be preserved.

VenturesNow

Kenya: Parliament approves appointment of Kamau Thugge as central bank governor

Published

7 hours ago

June 7, 2023

Ifeoluwa Dada

Months after throwing open the position for the country’s top banker, Kenya’s parliament has approved the appointment of Kamau Thugge as the country’s central bank governor.

The National Assembly on Wednesday approved the
appointment of economist and senior civil servant who was nominated by President William Ruto as the next apex bank chief.

Thugge, who served as principal secretary in the finance ministry until mid-2018, was nominated after serving as one of the president’s senior economic advisers since late last year.

He shook off competition from others shortlisted candidates like Adan Mohamed, who served in the cabinet from 2013-2022, with four others also interviewed for the role.

The new central bank governor will be faced with the immediate pressure of stabilizing the country’s monetary policy as the East African giant currently faces a shortage of funds amidst rising public debt.

Despite the odds, the World Bank in a report earlier today expects growth to edge up to 5.0% in 2023, underpinned by a recovery in agriculture.

VenturesNow

Ghana presents ‘working proposal’ for debt restructuring— IMF sources

Published

7 hours ago

June 7, 2023

Ifeoluwa Dada

West African country, Ghana has made a major move at resolving its debt crisis as the country has presented debt restructuring proposal to its creditors.

According to sources quoted by Reuters, a “working proposal” has been submitted to help the country escape its worst economic crisis in a generation.

One of the sources revealed that the proposal was a first attempt to engage the official creditor committee after its formation in May. It should be recalled that the Paris Club last month announced that official sector of creditors of Ghana had formed a committee co-chaired by China and France for debt restructuring talks.

The plan is to end restructuring of domestic debt before turning to negotiations with its official bilateral creditors and international bondholders, a government official said.

Ghana is one of several cash-strapped countries facing unprecedented delays in getting bailouts as China, its biggest bilateral creditor with about $1.7 billion of debt and Western economies disagree over how debt relief should be structured.

The first formal review of the programme will hold in the coming months as an IMF team will visit Ghana between 8th and 15th of June.