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Zambia cedes control of Konkola Copper Mines to Vedanta Resources

Published

1 year ago

September 5, 2023

Zambian mines minister, Paul Kabuswe says the country has agreed to return control of Konkola Copper Mines to Vedanta Resources.

The agreement was reached after negotiations in which both sides decided against taking legal action and instead chose to negotiate.

Vedanta fell out with the Zambian government after former President Edgar Lungu’s administration orchestrated the seizure of the KCM assets and forced liquidation in May 2019, accusing the Indian company of failing to meet plans to invest in increasing mining output.

Vedanta has once again pledged to invest more than $1.2 billion to improve output and pay off debts, and the government, which holds a 20% share in KCM through ZCCM-IH, would permit the business to restore control and operation of KCM’s mines and smelter, Kabuswe said.

He added that to make the promises made by both shareholders enforceable, a shareholders’ agreement was currently being revised.

The minister promised that by the following three months, the legal specifics of the agreement and the reinstatement of the KCM board would be completed.

“It is not a secret that the asset has deteriorated a great deal and the production output has substantially reduced,” Kabuswe told journalists in Lusaka. “This is a very sad development for a national strategic asset of the country.”

Konkola Copper Mines is a copper mining and smelting company in Zambia. Vedanta Resources, a mining multinational with offices in Mumbai and London, owns 80% of it.

Vedanta owns 80% of the business, and ZCCM Investments Holdings, Zambia’s state-owned mining corporation, owns the other 20%.

The deal to return the mine to Vendata might be an indication of Zambian President, Hakainde Hichilema’s policy drive to reduce government participation in the mining industry.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”