VenturesNow

Canada’s First Quantum in pursuit of partners for Zambian assets

Published

1 month ago

October 24, 2024

Without naming the companies, First Quantum Minerals, a Canadian miner, stated on Wednesday that it is in discussions with possible partners for its Zambian properties.

According to three people familiar with the matter, Reuters said last week that Saudi Arabia’s Manara Minerals is nearing an agreement to purchase a minority interest in First Quantum’s copper and nickel holdings in Zambia.

“We’re more open to partnerships, and that includes in Zambia, but only if it’s in the interest of our Zambian business, the Zambian government and all the stakeholders involved,” First Quantum CEO Tristan Pascall said on a conference call with analysts. The company’s shares were up 3% in early trade at C$18.93.

Copper is a highly sought-after component for the clean energy transition, as it is used to make electric cars and power data centres for artificial intelligence. The possible Manara Minerals deal, which may be worth between $1.5 billion and $2 billion, is in the news.

A stake sale in the Zambian mine would assist First Quantum in paying down its mounting debt following the Panamanian government’s order to close its flagship Cobre Panama mine last December in response to public outcry.

The business is awaiting a decision regarding the mine’s future and permission from Panama’s new government to transport 121,000 metric tonnes of trapped copper concentrate.

If that copper was approved for sale, working capital would be available to keep the mine operating. Monthly mining maintenance costs for the Canadian miner range from $11 million to $13 million.

Pascall cautioned that the business will need to reduce expenses, particularly staffing, in the coming months.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.