VenturesNow

Egyptian loan package size is appropriate, says IMF

Published

4 hours ago

October 24, 2024

Egypt has a $8 billion loan program, which the IMF said Thursday was “still appropriate” in size. The IMF says it will prioritise evaluating the effectiveness of Egypt’s social protection programs.

On Sunday, Egyptian President, Abdel Fattah al-Sisi, issued a warning, saying that if international organisations failed to consider the unique regional difficulties Egypt was facing, his nation may have to reassess its extended loan program.

Egypt’s March IMF-signed support package calls for it to cut fuel, electricity, and other commodity subsidies and let its currency fluctuate freely, actions that have infuriated the populace.

The Fund said Thursday that it was collaborating with Egyptian authorities to increase the social protection program’s outreach and ensure that it was adequate.

“This will be one of the priority issues that the managing director will raise and will discuss – how effective the social protection programs are,” Jihad Azour, the IMF director for the Middle East and Central Asia Department, said in a briefing.

Azour emphasised how crucial it is for Egypt to keep its currency’s exchange rate flexible, which is another IMF loan criterion.

VenturesNow

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

Published

16 hours ago

October 24, 2024

Ifeoluwa Dada

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.

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Egypt reduces 2040 renewable energy target to 40%, prioritises natural gas

Published

4 days ago

October 20, 2024

Ifeoluwa Dada

Petroleum Minister Karim Badawi announced on Sunday that Egypt had reduced its 2040 renewable energy target down from a previous goal of 58% to 40%, highlighting the fact that natural gas will continue to play a significant role in the nation’s energy mix for years to come.

Egypt promised to increase the percentage of renewable energy output in its energy mix to 42% by 2035 before hosting the COP27 climate meeting in 2022.

Later, the aim was advanced to 2030. Mohamed Shaker, the then-minister of electricity, unveiled a bold proposal in June 2024 to increase this to 58% by 2040; however, that goal has since been abandoned.

“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said in the opening session of the Mediterranean Energy Conference 2024.

Egypt’s persistent dependence on fossil fuels coincides with efforts to regain the confidence of international oil companies, whose domestic activities ceased due to a shortage of hard currency that put the nation in debt to the tune of billions of dollars.

Since entering office in July, Badawi has met with many foreign energy corporations, such as Eni of Italy, which intends to increase production in Egypt’s largest gas field, Zohr, by digging additional wells in early 2025.

At its peak of 3.2 billion cubic feet per day (bcf/d) in 2019, Zohr’s gas output allowed the nation to turn a profit.

However, by early 2024, output had dropped to 1.9 bcf/d, forcing Egypt to import more gas through a pipeline connecting it to Israel and more LNG to avoid a months-long load-shedding program.

Additionally, Egypt imports fuel oil that contains sulphur; in September, imports reached a record-breaking 255,000 barrels per day (bpd), the highest level since at least 2016.