VenturesNow

First Quantum, Jiangxi Copper negotiate stake sale of Zambian mines— Source

Published

12 months ago

January 5, 2024

Chinese state-owned Jiangxi Copper Corp. is in talks to purchase a portion of Canadian firm, First Quantum Minerals’ copper mines in Zambia.

The action comes after First Quantum was dealt a severe blow in Panama, where it was mandated to close one of the largest copper mines in the world, a move that could negatively impact the company’s ability to borrow money, according to debt rating agency Fitch.

A substantial minority stake in the company, rather than mine stakes, was acquired by Jiangxi as a result of similar discussions between the two companies in 2019. Now, Jiangxi holds an 18.2% ownership position in First Quantum. The Chinese company is prohibited from increasing its stake beyond 20% by the terms of its standstill agreement.

First Quantum owns all of the Sentinel mine and 80% of the Kansanshi mine in Zambia, while the government of Zambia owns the remaining portion.

A source quoted by Reuters said, “The Chinese want the Zambian mines… so the company (First Quantum) could sell one of the Zambian mines.” According to the source, Jiangxi, the largest shareholder of First Quantum, may wind up purchasing a share in or all of the two mines.

A First Quantum representative declined to comment on the discussions but stated that the company would provide an update on its debt-repayment strategy later this month. Also, Jiangxi Copper did not reply to Reuters’ email inquiry.

According to company filings, the two mines in Zambia brought in $943 million in revenue and $210 million in operating profit during the quarter that concluded in September 2023.

Zambia is one of Africa’s top producers of copper and has been a mining powerhouse for well over a century. Mining accounts for three-quarters of the nation’s export revenue and is vital to its economy.

The country’s government currently plans to increase copper production from approximately 850,000 metric tonnes to 3 million metric tonnes annually by 2032.

VenturesNow

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.

VenturesNow

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

Published

4 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.”