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Zambian govt, India’s Vedanta sign Konkola copper mines deal to end protracted legal battle

Published

1 year ago

November 7, 2023

Indian firm, Vedanta Resources has signed an agreement with the Zambian government that restores Konkola Copper Mines (KCM) to it.

The agreement ends a protracted ownership battle that stifled investment and formally returns the copper assets that the state seized in 2019 to Vedanta.

After former president Edgar Lungu’s government orchestrated the seizure of the copper assets by forcing the operations into liquidation in May 2019, billionaire Anil Agarwal’s Vedanta launched many legal challenges, including suing Zambia at the London arbitration court, to regain control of KCM.

The deal between state company, ZCCM-IH and Chris Griffith, Vedanta’s head of base metals, was signed in Lusaka in the presence of Zambia’s Mines Minister, Paul Kabuswe.

Zambia holds one of the world’s richest copper deposits and plans to triple the output of the metal, which is an essential element in power lines, industrial machinery, and electric vehicles. According to Kabuswe, the agreement will result in the KCM board’s reappointment and the dismissal of all pending legal challenges, including the removal of the provisional liquidator who was in charge of the assets.

“You have to live by what you have told us—that this is the investment that will be coming,” the minister said.

Vedanta promised to invest roughly $1.2 billion in the operations. In September, the government— which owns a 20% stake in KCM through ZCCM-IH— announced that it had reached an agreement to allow Vedanta to resume control of the mines and smelter.

Zambia has been a mining powerhouse for well over 100 years and is one of the largest copper producers in Africa. Mining is crucial to its economy and is responsible for three-quarters of the country’s export earnings.

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Moroccan annual inflation rises to 0.8% in November

Published

2 days 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.”