With annual production capacity of 120 million metric tons, the project in the African nation’s southeast is set to be the world’s largest mine for the highest grade of iron ore, key to the green transition in the global steel value chain.

Simandou has four mining blocks with two in the northern region developed by a consortium of Singapore-based Winning International Group, Weiqiao Aluminium, which is part of China Hongqiao Group, and United Mining Suppliers.

Baowu has become a key shareholder after completion of the transfer in June of shareholding rights by Winning Consortium Simandou (WCS), as it is known.

“Because Simandou is rich in high grade-resources with favourable mining conditions, production cost will be relatively competitive,” the company said in a briefing on its third-quarter result.

The company hopes to optimise its ore blending structure after Simandou starts production, it added.

Baosteel is a unit of state-owned China Baowu Steel Group, the world’s largest steelmaker by output.

The company also said the building for its zero-carbon plant, with an investment of 4.5 billion yuan ($631 million) and powered by green hydrogen and green electricity in Zhanjiang in the southern province of Guangdong, will be completed in 2025.

On Tuesday, Baosteel reported a plunge of nearly 65% in its third-quarter net profit, undermined by a fall in steel prices.

Its export orders in the first three quarters hit a record high of 4.66 million tons, well on track for its 2024 target of 6 million tons.

($1=7.1360 Chinese yuan renminbi)

(Reporting by Amy Lv in Beijing and Farah Master in Hong Kong; Editing by Christian Schmollinger and Clarence Fernandez)

Debswana, equally owned by Botswana and Anglo American Plc’s De Beers, sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company (ODC).

Last year, Botswana and De Beers agreed to a new 10-year diamond sales agreement, where ODC will receive 30% of Debswana’s produce and this will be scaled up to 50% by the end of the new contract.

In the first three quarters of the year up to September, Debswana had sold diamonds worth $1.53 billion compared to $3.19 billion in the same period last year, the Bank of Botswana said on Tuesday. 

In local currency terms, sales were down 50.3% to 20.9 billion pula, which translates to about $1.55 billion based on current exchange rates.

Botswana gets 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from diamonds. It is the world’s top producer of the gem by value.

The southern African country will hold a general election on Wednesday, with the poor performance of the economy-largely due to the downturn in the global diamond market-and high levels of unemployment among the issues in focus.

“Our diamonds have not been selling since April, so yes, our revenues are down but the economic fundamentals still remain intact,” President Mokgweetsi Masisi, who is seeking a second term, said at a presidential debate last week.

($1 = 13.4590 pulas)

(Reporting by Brian Benza; Editing by Abinaya Vijayaraghavan and Bhargav Acharya)

The world’s biggest miner walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. The upcoming end to a six-month block on BHP making another approach had raised speculation a deal may again be under scrutiny.

“We made an approach to Anglo American earlier this year … we thought there was an opportunity here to create something unique and special, a bit of a sort of a one plus one equals three opportunity,” Ken MacKenzie said at BHP’s annual meeting.

“Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we.”

As evidence, MacKenzie pointed to BHP’s C$4.5 billion ($3.25 billion) deal with Canada-listed Lundin Mining in July to jointly take over developer Filo Corp in a move to grow their copper holdings in South America.

(By Melanie Burton; Editing by Christian Schmollinger and Sonali Paul)

Mali’s mining code allows Compass to mine up to 200,000 tonnes of ore a year in the country’s south and produce as much as 160,000 oz. of metal over the next four years. Free cash flow from operations will support debt repayment, fund operating expenses, and advance exploration along the 15 km Tarabala trend, part of its Sikasso property, the company said in a release.

CEO Larry Phillips said the agreement puts Compass on the path to generating cash flow quickly while taking advantage of high gold prices.

“This initial joint-production arrangement represents an important step toward achieving near-term production with minimal capital investment,” Phillips said in a release. “We firmly believe the accelerated timeline afforded by this arrangement is especially important, given the historically high gold price to be realized through the production and sale of gold in the coming year.”

Compass shares hit a 12-month high in Toronto on Tuesday at C$0.22 apiece, having traded at a low of C$0.11. It has a market capitalization of C$15 million.

The agreement allows Compass to process 50 tonnes of ore per hour at the SMAT facility using new processing equipment scheduled for installation by early next year. The plant is just 3 km from its Massala prospect, where the Tarabala trend is found, and south of the capital Bamako.

Trenching results

Recent trenching at Massala returned gold assays above 1 gram gold per tonne, according to a release on Aug. 19. That’s above the minimum threshold for small-mine profitability, the company said.

The prospecting found strong gold near the surface. Assays confirmed a minable strike length of 150 metres.

The best results from the 5-metre-deep trenches included 21 metres at 3.51 grams gold per tonne. A high-grade interval was 1 metre at 40.29 grams gold. Compass said these results support its push for a small mine permit under Mali’s mining code, for which the Toronto-based company applied on Aug. 19.

It also seeks to renew its larger Sikasso property exploration permit, which spans 1,173 sq. km.

Phillips says he’s confident in the project timeline, expecting receipt of the mining permit early in the new year to coincide with plant readiness.

“We are close to pouring our first gold.”

The company reported that in recent discussions, the bank confirmed its intention to approve a $295 million debt facility, which would cover 60% of the project’s projected costs.

Dasa is the highest-grade uranium deposit in Africa, surpassed only by grades found in Canada’s Athabasca Basin, and is scheduled to achieve commercial production in early 2026.

“The approval timelines outlined by the bank support yellowcake deliveries in 2026 as anticipated in the four off-take agreements we have in place with American and European nuclear power utilities,” said President and CEO of Global Atomic, Stephen G. Roman.

“To help fund the continuing development of Dasa until the bank funds are available, earlier this month we raised C$40 million ($29 million) in an oversubscribed public offering,”

Global Atomic shares traded at C$1.15 apiece on Tuesday morning in Toronto, valuing the company at C$304 million ($218 million). 

In addition to the development bank, Global Atomic is in discussions with parties regarding potential joint venture investment in the Dasa Project and other financing solutions.

Processing plant

According to Global Atomic, earthworks and civil engineering are progressing in preparation for the installation of plant equipment, components of which are now arriving at the site. More than 1,200 metres of mine development finished at Dasa.

The main fresh air raise is complete, and the return air raise is underway.  Once the fans have been installed, the expansion to the underground ventilation system will allow mining activity to advance beyond the first-level development.

Construction of a 400-person facility is expected to be completed in early Q1 2025.

Earlier this month, the company said 10,000 tonnes of development ore had been brought to the surface.

Niger coup

A military coup in July last year led the US to suspend government funding for Dasa. Still, the company managed to raise C$15 million ($11 million) in January and C$20 million ($14 million) in July by selling stock.

The Nigerien government has pledged its full support for the project, but other uranium developers in Niger faced major setbacks this past summer.

In June, the government withdrew a mining permit for Orano’s Imourare project, and in July, it revoked the mining licence for GoviEx Uranium’s (TSXV: GXU) Madaouela project.

According to the feasibility study, Dasa hosts 73 million lb. in probable reserves of uranium oxide in 8 million tonnes, grading 4,113 parts per million uranium oxide. Global Atomic has signed offtake agreements for 1.3 million lb. of uranium a year.

The study, published just a day after the United Nations warned the world is falling “miles short” of what’s needed to curb devastating global warming, indicates that an investment of $78 trillion will be needed to change this course and achieve net-zero emissions by 2050.

Under the 2015 Paris Agreement, nations committed to limiting global warming to “well below” two degrees Celsius above the average temperatures recorded between 1850 and 1900, aiming for a target of 1.5 degrees Celsius if feasible. Efforts to date have not succeeded in meeting this challenge, the annual “Energy Transition Outlook” from Wood Mackenzie shows.

Unlike the UN pessimistic outlook, the Scottish consultancy believes that while major obstacles hinder short-term targets, particularly for 2030, a 2050 net-zero goal remains feasible. Immediate and coordinated global action would be necessary, WoodMac warns.

Threats to climate progress

A series of global crises, including the Russia-Ukraine conflict, escalating Middle East violence, rising populism in Europe and global trade tensions with China, are undermining the pace of the energy transition, Wood Mackenzie’s vice president head of scenarios and technologies, Prakash Sharma, said. 

He explains that without urgent policy changes and enhanced investment, a warming trajectory of 2.5˚C to 3˚C could become inevitable.

“We are under no illusion as to how challenging the net zero transition will be, given the fact that fossil fuels are widely available, cost-competitive and deeply embedded in today’s complex energy system,” Sharma added. “A price on carbon maybe the most effective way to drive emissions reduction but it’s hard to see it coming together in a polarized environment.”

Key investment are needed across several critical areas, according to WoodMac. As renewable energy sources grow, substantial upgrades to power supply and grid infrastructure are essential to meet the growing demand. Additionally, the need for critical minerals, such as lithium, nickel and cobalt, is projected to increase five- to ten-fold by 2050, as demand for batteries and other technologies essential for the energy transition continues to grow. 

WoodMac sees the need to back the development of emerging technologies, including carbon capture, low-carbon hydrogen, and nuclear power, are vital for facilitating the shift towards cleaner energy sources.

Securing this funding won’t be easy, the consultants noted. “Doubling annual investments to $3.5 trillion by 2050 will be necessary in our net zero scenario,” Sharma said, adding that it will require unprecedented policy coordination globally.

The role of electrification

The electrification of energy systems will play a pivotal role in decarbonization. Transitioning from fossil fuels to electric power, Wood Mackenzie forecasts that electricity’s share of global energy demand will increase from 23% to 35% by 2050 in a base case, and could reach as high as 55% in a net-zero scenario.

Wood Mackenzie’s analysis reveals that global energy demand is set to rise by 14% by 2050. Emerging economies are projected to see even steeper growth at 45%, driven by rising populations and economic advancement. 

In parallel, data centres, electric vehicles, and AI are emerging as new drivers of electricity consumption, with AI-related energy use alone expected to increase from 500 TWh in 2023 to up to 4,500 TWh by 2050.

Including renewable energy source to meet electrifications demand could help reduce emissions, the report says.

According to Wood Mackenzie, solar and wind currently account for 17% of the global power supply, and renewables capacity is expected to double by 2030 in its base case. Yet, this increase still falls short of the COP28 commitment made in 2023 to triple renewables by 2030.

Transition or coexistence?

While nuclear energy holds promise for providing consistent, zero-carbon electricity, its high cost and frequent project delays pose significant challenges. WoodMac says that nuclear power could play a more significant role as it has attracted interest, particularly from tech companies looking to power data centres sustainably.

While fossil fuels is expected to plateau in the 2040s before beginning a gradual decline, Wood Mackenzie predicts that the high capital costs of low-carbon technologies coupled with strong demand for energy, will require the continued use of oil and gas in the near term.

Wood Mackenzie says to meet climate targets there will be necessary that nations gathered at the COP29 meeting in Azerbaijan next month finalize Article 6 of the Paris Agreement. This section focuses on carbon markets and aims to establish a new climate finance goal to replace the previous annual target of $100 billion, which experts consider insufficient.

The consultancy’s report echoes concerns included in a UN Environment Programme (UNEP) study released last week. The document says the next decade is crucial in the battle against climate change, adding that failing to act now will jeopardize any chance of limiting global warming to 1.5 degrees Celsius. According to the UN body, the current rate of climate action could lead to a catastrophic increase of 3.1 degrees Celsius this century. 

“Either leaders bridge the emissions gap, or we plunge headlong into climate disaster, with the poorest and most vulnerable suffering the most,” Secretary General Antonio Guterres warned.

Even if all existing commitments to reduce emissions are fulfilled, global temperatures would still rise by 2.6 degrees Celsius above pre-industrial levels, experts agree.

Centamin noted that the necessary majority of its shareholders, equivalent to more than 75% of the voting rights, backed the deal at a court and general meeting held on Monday.

The deal would make the South African gold miner the world’s fourth largest producer of the precious metal as it hands it the key to the Sukari mine in Egypt.

Sukari is the country’s largest and first modern gold operation, as well as one of the world’s largest producing mines.

The addition of the Sukari mine to its portfolio will increase AngloGold’s annual production by around 450,000 ounces, bringing its total output to 3.1 million ounces. 

Since production began in 2009, Sukari has produced more than 5.9 million ounces of gold, and has a projected mine life of 14 years.

The acquisition of Centamin has already received clearance from Egypt’s competition authorities.

There is still one obstacle to overcome, AngloGold said, which is the approval of the scheme by the Jersey Court, withe the hearing scheduled for November 20.

Once the deal goes through, AngloGold shareholders will hold about 83.6% of the combined entity, while Centamin investors will own roughly 16.4% of the enlarged share capital.

The acquisition is the latest in a flurry of gold deals fuelled by record-breaking prices for the precious metal. It is also the latest blow to the London stock market, which has seen an exodus of companies over the past few years. The exchange has faced challenges since Randgold’s delisting after its merger with Barrick Gold in 2018, and the massive departure of Russian gold miners following Moscow’s invasion of Ukraine.

CMOC Group Ltd. produced 84,722 tons of cobalt at its mines in Africa in the first nine months of this year, according to the firm’s earnings report late Monday. Its earlier output guidance for all of 2024 was 70,000 tons at the high end.

The faster-than-expected increase has deepened a global cobalt glut and helped send prices tumbling to an eight-year low this month. The Chinese firm passed Glencore Plc last year as the world’s top supplier of the metal used in everything from electric-vehicle batteries to aerospace alloys.

CMOC has been expanding two huge mines in the Democratic Republic of Congo, where cobalt is extracted as a by-product of mining copper. Its output of the red metal in the first nine months rose 78%, and could hit 600,000 tons for this year “if this pace of production continues,” CMOC said on its official WeChat account.

The miner’s third-quarter net income rose 64% from a year earlier to 2.9 billion yuan ($410 million), largely thanks to the higher copper output and relatively strong global prices of the metal. Revenues rose 16% to 51.9 billion yuan.

CMOC is among several Chinese firms trying to lift output in central Africa’s copper belt. Preliminary exploration work has started for the western area of its Tenke Fungurume mine, and also for phase two of its Kisanfu project, it said.

In a separate statement, CMOC said it has signed a three-year supply and purchase agreement with Contemporary Amperex Technology Ltd. — the world’s top battery-maker and CMOC’s second-biggest shareholder — for metals including copper, cobalt, nickel and lithium.

CATL bought $546 million worth of products from CMOC in the first eight months of 2024, more than double the volume in all of 2023. CMOC said those were primarily nickel products.

(By Annie Lee)

The fatal incident occurred at the SimFer port site of the project on Saturday and the company said is collaborating with its partners and relevant authorities to conduct a comprehensive investigation.

Chief executive Jakob Stausholm extended his condolences to the family, friends, colleagues and communities affected by the tragedy. 

This is Rio Tinto’s fifth fatality in 2024. Four employees died in January when a charter flight to the Diavik diamond mine in northern Canada crashed. Before this accident, Rio had five consecutive years without fatalities at its managed operations.

The world’s second largest miner obtained in July all necessary regulatory approvals to resume construction at its vast Simandou iron ore asset, the world’s biggest mining project.

The mine, which Rio is co-developing with a Chinese consortium, is set to be the world’s largest and highest grade new iron ore mine, adding around 5% to global seaborne supply when it comes on line. 

First production from Simandou is scheduled for next year. The mine will contribute an annual supply of nearly 120 million tonnes of high-quality iron ore once it reaches full capacity.

The poll could be competitive, analysts said, although a divided opposition gives the advantage to Masisi’s Botswana Democratic Party (BDP), which has ruled the country of 2.3 million people since its independence from Britain in 1966.

Botswana has enjoyed stability and relative prosperity thanks to its diamond wealth and small population, which gets free healthcare and education. It is the world’s top producer by value of the gem.

But a downturn in the diamond market has put a squeeze on revenues in the last few years, and the country has struggled to diversify its economy. Opponents say the BDP has been in power too long and accuse it of economic mismanagement and corruption, which it denies.

“Our diamonds have not been selling since April so yes, our revenues are down but the economic fundamentals still remain intact,” said Masisi at a presidential debate last week.

“We are going to continue with the projects and policies we have come up with that are aimed at putting more money and wealth into the hands of the citizens of this country,” he said.

One success of his first term was negotiating a new contract with diamond giant De Beers which will give Botswana a greater share of its rough diamonds. He also lifted a ban on elephant hunting which he says benefits rural communities, and instated an import ban on some produce items to help farmers.

His main challenger is Duma Boko of the opposition coalition Umbrella for Democratic Change (UDC).

The other candidates are Dumelang Saleshando of the Botswana Congress Party and Mephato Reatile of the Botswana Patriotic Front, backed by former President Ian Khama who quit the BDP after a feud with Masisi over scrapping the hunting ban and other issues.

Opponents have attacked Masisi’s economic record, citing rising unemployment, which stands at around 28%.

“It is not acceptable that a country such as ours which is the fifth richest per capita in Africa still has so many people living in poverty,” said Boko at the debate.

Botswana actually has the fourth highest gross domestic product (GDP) per capita of countries in sub-Saharan Africa, according to World Bank figures.

Boko has pledged to more than double the minimum wage and increase social grants, saying he would get the money by reducing wasteful spending.

The BDP has faced declining popularity but maintains a large majority in parliament, having won 38 of the 57 contested seats in 2019. The UDC won 15 seats. Voters in Botswana elect parliamentarians, who then elect the president.

Analysts said the opposition is crippled by a lack of funding.

“The playing field is not even,” said Ringisai Chikohomero, from the South Africa-based Institute for Security Studies.

After the last election the opposition claimed fraud and challenged the results at the High Court, which dismissed the case.

(By Brian Benza and Nellie Peyton; Editing by David Gregorio)

The project, previously jointly and equally owned by the two companies, is expected to help Gold Fields balance its aging assets in Ghana and Peru, adding 300,000 ounces per year at an all-in sustaining cost (AISC) of under $800 per ounce, from early 2027.

The deal, announced in August, drew some criticism as Gold Fields paid a 55% premium for the second batch of Osisko shares. Chief executive Mike Fraser assured the market on Monday that Gold Fields remained in a strong financial position following the acquisition, maintaining its investment-grade credit rating.

Analysts have pointed that Gold Fields paid a premium for Osisko mainly to acquire a high-quality project and prevent being outbid for a growth asset in a strongly supportive gold market. Several banks and agencies forecast that prices for the precious metal will surpass $2,800/ounce this year and reach $3,000/ounce by 2025.

Gold Fields’ top executive said the company’s financial position was anticipated to strengthen further, thanks to cash flow growth projected for the remainder of the year and into 2025, driven by increased production volumes at various operations.

“Deposits of the scale and quality of Windfall with highly prospective exploration camps are rare, particularly in a world-class jurisdiction like Québec,” Fraser said. “This transaction therefore marks an important step in our journey to continue improving the quality of our portfolio.”

Growth “anchor”

Gold Fields plans to bring the Windfall mine into production by the end of 2026 or early 2027. The project, along with the recently commissioned Salares Norte project in Chile, is central to the company’s growth strategy.

“Windfall will be a real anchor for Gold Fields’ portfolio,” Fraser told our sister publication The Northern Miner in September. “It’s a place we’ve long looked at to grow our footprint.”

The asset holds an estimated 3.2 million ounces gold in 12 million tonnes at 8.1 grams gold per tonne in proven and probable reserves. Further exploration could extend the project’s lifespan, adding more long-term value, the company says.

Founded in 1887 by Cecil John Rhodes, Gold Fields has reshaped itself throughout the years. It sold all but one of its South African assets a decade ago, refocusing on newer, more profitable deposits in Ghana, Australia, and the Americas.

The gold producer projects output this year to total 2.2 million to 2.3 million ounces of the precious metal, revised down from an original estimate of 2.3 million to 2.4 million ounces to account for the delays in the Salares Norte ramp up.

As global demand for minerals and raw materials increases, buoyed by the soaring of certain commodity prices, purported green ambitions, and nationalist fervour, governments have begun wielding a range of regulatory tools and sometimes strong-arm tactics against foreign mining companies in the name of resource nationalism.

The resurgence of resource nationalism—particularly in countries experiencing political upheaval, such as the “Coup Belt” in Francophone Africa—poses a major risk to the ambitions of foreign mining companies and the battery revolution. Beginning with the late Tanzanian President John Magufuli’s so-called “economic war” on foreign mining companies in 2016/2017, a number of African States have followed suit in adopting aggressive nationalistic mining policies that have frequently toed the line between legitimate economic rebalancing and outright rent-seeking.

Tanzanian beginnings

Despite more recent, legitimate efforts to improve its reputation for foreign investment, Tanzania led the way with resource nationalistic overhauls of its legal framework for mining in 2017 and 2018. Tanzania’s “economic war” has served as an exemplar to many African States, particularly in the Coup Belt, which have focused more on the electoral popularity of such measures than on their costly financial aftermath.

Tanzania’s economic war resulted in a rash of legal claims and whilst some of these claims —particularly the one brought by Barrick—settled in such a way that Tanzania could claim a purported “victory”, others have proven needlessly costly.

For instance, in 2023, Canadian gold miner Winshear Gold Corp. reached a $30 million settlement agreement with Tanzania after the government revoked Winshear’s retention licence for its SMP gold project. Similarly, subsidiaries of Australian nickel miner Indiana Resources recently obtained a $90 million settlement with Tanzania (82.5% of the total original Award) over the government’s illegal expropriation of the Ntaka Hill nickel project.

Although Tanzania is not in the Coup Belt, Tanzania’s recent experience will likely serve as a crystal ball for the region—resource nationalism and arbitrary “reforms” come at a significant cost, which could be avoided through simple negotiations rather than heavy-handed tactics.

Key risks for mining companies

Recent coups d’état across West Africa have led to the contemporary resurgence of politically popular, but fiscally irresponsible, measures adopted from Tanzania’s policy playbook, including sweeping changes to mining codes to increase government royalties and free carried interest percentages, increased export duties and the renegotiation of existing mining conventions and mineral development agreements. Such changes have caused increased permitting delays and complete legal uncertainty about how to meet regulatory requirements.

Structuring investments to benefit from BITs

Companies can effectively mitigate the risks associated with resource nationalism by structuring their investments to benefit from the protections offered by bilateral investment treaties (BITs). BITs are agreements between two or more countries that guarantee certain protections to investors, including the right to pursue international arbitration in the event of a dispute.

BITs can protect companies against unlawful expropriation and provide a legal framework for resolving disputes outside of the host country’s jurisdiction. However, investments must be structured through countries that have BITs with the host country.

In the case of Tanzania, investors like Indiana Resources and Winshear successfully pursued compensation for the unlawful revocation of their mining licenses by incorporating subsidiaries through the United Kingdom and Canada, respectively.  Notably, Tanzania has recently sought to terminate its BIT with Canada, a move which forces companies to structure their investments through other countries with treaty protections, like Mauritius, whilst underlining the risk that such jurisdictions pose in the first instance.

One of the primary lessons from recent events is that foreign companies should not rely solely on their licenses and agreements with local authorities; they should also explore international legal protections like those described above.

Negotiating robust agreements

Where companies have a direct agreement with the State, they should opt for a “Coup Belt and Braces” approach in negotiating robust agreements whilst also backstopping their investments with structuring that provides access to BITs. In respect of the former option, companies must ensure that their contracts with host governments include clauses that mitigate risks related to resource nationalism, such as:

• Stabilization clauses: These clauses protect investors from adverse changes in law or policy after the agreement has been signed by either freezing the regulatory framework in place or providing compensation if new laws negatively impact the investment.

• Dispute resolution clauses: Companies should negotiate to include international arbitration as the preferred method of dispute resolution, allowing them to bypass local courts, which may not be impartial or reliable. The same applies for local or regional arbitration centres, which are often untested and are supervised by the very courts foreign investors may wish to avoid.

Companies should avoid putting all their resources in one region, particularly in politically unstable areas. Diversification of assets across different countries reduces the impact of political and regulatory risks in any one location. If problems arise in one country, operations elsewhere can help cushion the financial blow. Many of our clients have been able to pursue their rights in respect of one project whilst providing value to shareholders by advancing another.

Engagement with local stakeholders

Whilst building strong relationships with local communities and stakeholders can help mitigate some risks, it cannot alleviate them entirely. Sadly, there is no evidence that governments are less likely to nationalize assets if companies operating in their country are benefiting local populations through job creation, infrastructure development, and other social programs.

Nevertheless, those efforts are laudable in their own right and provide terrible optics for a state seeking to explain away its nationalization of a mining project to an international tribunal.

Operating in challenging states, particularly those prone to political instability and resource nationalism, presents significant financial and operational risks—illegal expropriation, increased taxes, and revoked licenses, to name a few.

Mitigation of those risks demands adaptability and innovative strategies and frankly, good lawyers. In the current climate, it is down to mining companies to adapt to these challenging environments for as long as states prioritize nationalism over national long-term interest, and politicians in these states favour electoral over generational gain.

Timothy Foden is partner and co-head of the international arbitration group at Boies Schiller Flexner in London. Kristen Young is partner in Washington, D.C. and Rebecca Mee is an associate in London, both specialize in disputes in Francophone Africa.

Boies Schiller Flexner represented Indiana Resources and Winshear Gold in the cases mentioned.

Mali is considering letting the permit for Loulo lapse when it expires in February 2026, Finance Minister Alousseni Sanou said in an Oct. 18 letter sent to Barrick’s chief executive officer Mark Bristow, and seen by Bloomberg. Mali “reserves the right not to renew the operating permit” and invited Barrick to talks on the mine’s “transition phase” starting later this month, Sanou wrote.

The move comes as the junta has taken an increasingly hard line against the world’s second biggest gold miner, including briefly jailing four of its local executives last month over alleged “financial crimes.” Mali this week accused Barrick of failing to honor a September agreement aimed at resolving their disputes, which the Canadian company has denied.

A spokesman for Barrick declined to comment when reached by phone. Mali’s Finance Minister Sanou declined to comment in a text message.

The Loulo concession forms part of the Loulo-Gounkoto complex, in which Barrick owns 80% and the government holds the rest. The larger site represented roughly 13% of Barrick’s attributable gold production in 2023, according to its annual report.

CEO Bristow has visited the West African country repeatedly over the last year — including a stop at the mine in March where he told local media that it contributed more than $1 billion to the Malian economy in the past 12 months.

The country last week rejected Barrick’s proposal to divide the economic benefits from Loulo-Gounkoto 55% for Mali and 45% for the company.

The junta’s demands on Barrick follow a 2023 audit of mining contracts and a push to renegotiate existing agreements with mining companies — including B2Gold Corp, Allied Gold Corp and AngloGold Ashanti Plc — in a bid to boost the state’s revenue from its mineral resources through a new mining code adopted last year.

The new code comes as Mali seeks to shore up its revenue following a 2020 coup that saw the country cut off from aid and the regional debt market. The code says that the state and “national interests” could increase stakes in mining projects to 35% from 20% previously. It also reduces the duration of mining licenses to 10 years from 30 years and adds a provision for more Malian nationals in leading positions in mining entities.

Mali has been pushing foreign mining companies including Barrick to align with the new regulations, which should only apply to new contracts and renewals of existing permits, Assane Sidibe, the president of the mining commission within the National Transitional Council told Bloomberg last year.

The junta hasn’t taken any steps to implement the agreed extension of the Loulo mining convention, which Barrick negotiated with the civilian government the military ousted in 2020, according to the company.

Escalating tensions

Tensions between Barrick and the government have escalated in the past month, after Mali briefly detained the four executives, all Malian nationals.

In a letter on Oct. 14, also seen by Bloomberg, Bristow proposed a 225 billion CFA franc ($371 million) financial settlement and the conclusion of a memorandum of understanding relating to Barrick subsidiary Société des Mines de Loulo’s operational permit.

Barrick’s changes to the government’s draft “are essential to preserve the economic viability of the Loulo-Gounkoto complex,” Bristow said. “These changes aim at assuring a just and fair split of the economic benefits generated by the complex.”

In the letter on Oct. 18, Sanou rejected Barrick’s proposal saying it was “fundamentally different” to Mali’s version.

(By Katarina Höije, Diakaridia Dembele and William Clowes)

Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021, but like all governments has refrained from formally recognizing the Islamic fundamentalist group’s rule amid international concern over its human rights record and those of women and girls.

But the impoverished country could offer a wealth of mineral resources to boost Beijing’s supply chain security although it risks becoming a haven for militant groups threatening China’s Xinjiang region and huge investments in neighbouring Pakistan.

Selling Afghanistan’s lithium, copper and iron deposits to feed China’s enormous battery and construction industries would help the Taliban prop up their economy, which the UN says has “basically collapsed”, and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100% tariff lines,” Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Thursday, above a photo of him meeting acting deputy prime minister Abdul Kabir.

Afghanistan exported $64 million worth of goods to China last year, according to Chinese customs data, close to 90% of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China last year, the data shows, but Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment last September.

“In the Horn of Africa, China’s Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan,” said Eric Orlander, co-founder of the China-Global South Project.

“I don’t buy the whole strategic minerals line that we hear in Washington about how China is eyeing Afghanistan’s vast lithium reserves,” Orlander added, citing the cost and security challenges involved in extracting them.

“(China’s) answer to everything is build a road, and from that economic development will lead to peace and harmony.”

Several Chinese companies operate in Afghanistan, including the Metallurgical Corp of China Ltd, which has held talks with the Taliban administration over plans for a potentially huge copper mine, and was highlighted in an August feature in Chinese state media on Chinese companies rebuilding Afghanistan.

Chinese President Xi Jinping at a Beijing summit for more than 50 African leaders in September announced that from Dec. 1 goods entering his country’s $19 trillion economy from “the least developed countries that have diplomatic relations with China” would not be subject to import duties, without giving details.

The policy was then repeated on Wednesday by vice commerce minister Tang Wenhong at a press conference in Beijing on the preparations for upcoming China’s annual flagship import expo.

Lin Jian, a Chinese foreign ministry spokesperson, confirmed on Friday the policy would apply to Afghanistan, adding it would promote mutually beneficial trade and economic cooperation.

The Afghanistan embassy in Beijing did not respond to a request for comment.

Last October, Afghanistan’s acting commerce minister told Reuters the Taliban wanted to formally join Xi’s flagship “Belt and Road” infrastructure initiative.

Kabul has also asked China to allow it to be a part of the China-Pakistan Economic Corridor, a $62 billion connectivity project connecting China’s resource-rich Xinjiang region to Pakistan’s Arabian Sea port of Gwadar.

(By Joe Cash and Mei Mei Chu; Editing by Raju Gopalakrishnan)

Read More: Taliban says it signed mining deals worth over $6.5 billion

Since its demerger from Anglo American in 2021, South Africa’s Thungela has pursued a strategy 100% hitched to coal, even while some investors shun the black stuff as a liability in a world under pressure to decarbonize.

“No new mines are being built as a result of either no capital or no licences,” July Ndlovu told Reuters in a virtual interview from Australia, where he said the Ensham mine Thungela acquired a year ago has seen output rise rapidly by a third to reach close to a 4 million tonnes target it had by 2026.

“If you’ve got long life, competitive assets which are low cost, those assets are going to be very valuable,” he said, adding that he currently had no new acquisitions planned.

After a coal rush to offset gas supply interruptions in the wake of Russia’s 2022 Ukraine invasion, rich nations have continued to sharply cut consumption in order to meet 2015 Paris Agreement pledges to reduce greenhouse gas emissions.

That, plus economic troubles in top consumer China, has weighed on prices. Yet they remain much higher than they were for more than a decade before the eight months leading up to the Ukraine war. Asian demand remains strong, Ndlovu said, which was “offsetting the decline in demand in the other regions”.

“I think in the short to medium term, certainly up to 2030 … we’re going to see flat to marginal growth … driven primarily by Asia,” he said.

South Africa’s coal shipments have been dampened by logistical problems at state-owned ports and rail company Transnet, devastating earnings of coal producers like Thungela, Exxaro Resources and Glencore, although those logistical problems have since eased.

Climate scientists say the world must swiftly abandon the world’s most carbon-intensive fuel – cancelling the building of new power stations and retiring existing plants early – to stand a chance of limiting warming to well below an average 2 degrees Celsius above pre-industrial levels by 2050.

“I think they are both unrealistic and premature. I’ve not seen a scenario which is zero coal,” Ndlovu said, adding that if there ever was: “We’ll be the ones delivering the last tonne.”

($1 = 17.6725 rand)

(By Tim Cocks; Editing by Elaine Hardcastle)

Barrick, the world’s second-largest gold miner, announced on Sept. 30 it had agreed with the government to resolve disputes over the Loulo and Gounkoto gold mines, days after Malian authorities briefly detained four Malian staff working for the company.

But in a joint statement dated Oct. 23, Mali’s economy and mines ministries said Barrick had “not honoured the commitments to which it subscribed in the agreement.”

Without sharing further details, the ministries said the breaches included those relating to environmental and corporate social responsibility and foreign exchange rules.

They said there were “serious risks to the group’s continued operations in Mali, one of whose operating licenses expires at the beginning of 2026.”

“The Malian government has decided to draw all legal consequences arising from the actions taken by Barrick Gold,” they said.

In response, Barrick denied the allegations and said since Sept. 30 it had been actively engaged with the government to reach a settlement that would include an increase in the state’s share of economic benefits from the Loulo-Gounkoto complex.

“While Barrick does not accept any claims of wrongdoing, it has chosen to act in good faith as a long-standing partner of Mali,” it said in a statement, adding that the company had paid the government $85 million in early October in the context of ongoing negotiations.

Earlier this month, three sources told Reuters that Mali’s military government was seeking at least 300 billion CFA francs ($512 million) in outstanding taxes and dividends from Barrick.

Asked to comment at the time, a Barrick spokesperson said the company was still in the process of negotiation.

The demands on Barrick follow an audit of mining contracts last year and a subsequent push by the junta to renegotiate existing agreements with foreign mining firms aimed at channeling a greater share of revenues into state coffers through a new mining code.

(By Tiemoko Diallo, Sourasis Bose and Alessandra Prentice; Editing by Tasim Zahid and Sandra Maler)

BHP walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. With a six-month block on another approach set to expire at the end of November, a deal is again under scrutiny.

Anglo was able to convince investors during BHP’s approach that it had a better plan to grow value, focused on shedding underperforming platinum, diamonds and coal to focus on copper, a metal key for the energy transition.

If that succeeds, the higher value that comes with copper assets may help keep Anglo safe, one portfolio manager at a Cape Town fund manager said.

But the longer it takes to achieve a transformation, the more likely it is that investors will be tempted by another bid.

Investors with shares in both companies told Reuters that even though they expect BHP CEO Mike Henry to renew his pursuit for the London-listed miner, the timing and even the rationale for such an approach could be shaped by whether Anglo can grow beyond the grasp of cash-rich rivals.

Anglo CEO Duncan Wanblad is rushing to sell coking coal mines in Australia and nickel assets in Brazil while spinning off platinum mines in South Africa. The company is also weighing whether to sell or separately list its De Beers diamonds unit.

Anglo’s world-class copper assets in Latin America are the prize for rivals seeking increased exposure to copper.

But its copper mines are still dogged by operational issues. On Thursday, it said copper output declined 13% in the third quarter, though the company remains on course to meet this year’s output guidance of 730,000 tons to 790,000 tons.

Anglo declined to comment. BHP did not respond to emailed requests for comment.

Choosing the moment

Anglo’s shares rose as much as 4.3% in London on Monday amid a broad uptick in mining stocks, but have shed most of the premium they added in the wake of BHP’s approach.

If Anglo’s valuation takes time to catch up with its restructuring, it could present a golden opportunity for BHP.

According to a source at a top investor in both companies, a restructured Anglo creates more value for BHP, which is still wary of the risks associated with absorbing South African assets.

“If I was BHP, I would say let Anglo do most of the heavy lifting, the restructuring it promised it will do by end 2025,” the source told Reuters.

Any potential new bid should come when some of the restructuring is expected to completed by June or July next year, they added.

BHP may have to wait until Anglo spins off its platinum business by mid-2025 to make the deal less complex, UBS Group analysts said. “We expect Anglo to re-rate as the group simplifies,” UBS said. “If not, we see potential for another takeover approach.”

Christiaan Bothma, an investment analyst at Johannesburg-based money manager Sanlam Private Wealth, which has shares in both companies, told Reuters it would “make sense” for BHP to wait for Anglo to do the asset separation for them.

But he added: “The counter argument to this would be if they wait (too) long, Anglo’s valuation premium may be too high or iron ore prices too low (BHP’s primary currency).”

(By Felix Njini; Editing by Veronica Brown, Pratima Desai and Jan Harvey)

CEO Tristan Pascall said in a conference call to discuss third quarter results, that the company was open to partnerships, particularly in Zambia, as long as they serve the interests of the business, the country’s government and all stakeholders.

While the names of the firms involved are yet to be disclosed, media reports last week suggested that Saudi Arabia’s Manara Minerals was the one close to a deal to acquire a minority stake in the Canadian miner assets.

The potential deal with Manara, estimated to be worth between $1.5 billion and $2 billion, has garnered attention due to the increasing demand for copper and nickel, considered essential to the energy transition.

The assets could have also attracted interest from Chinese companies such as Zijin Mining Group Co. and Jiangxi Copper Co., which is First Quantum’s second-biggest shareholder, according to market rumours.

For First Quantum, a stake sale in its Kansanshi and Sentinel copper mines would provide much-needed relief from its mounting debt, which escalated after the Panama government ordered the shutdown of its flagship Cobre Panama mine.

The Canadian company is awaiting a decision on the mine’s future and seeking permission from Panama’s new government to export 121,000 tonnes of copper concentrate stockpiled at the shuttered mine. This approval is crucial for the company, which is spending between $11 million and $13 million per month to maintain the mine, Pascall said.

The executive cautioned that while President Mulino said his government intends to address the issue in early 2025, without significant progress in the coming months, cost-cutting measures, including workforce reductions, may become necessary.

(With files from Reuters, Bloomberg)

The company said it had exported full container loads of high-quality, coarse flake graphite concentrate from the Port of Tulear, Madagascar, to be used in high-value graphite products. These include refractory materials and graphite foils for consumer electronics and fire-retardant applications. 

The shipments mark an important milestone for NextSource as it establishes itself as a supplier of critical materials to global markets and a contributor to economic development in Madagascar, chief executive officer Craig Scherba said in a statement.

The Molo mine entered production a year ago and now produces NextSource’s SuperFlake, which is the registered trademark for the company’s graphite concentrate. The product is known for its high carbon purity of up to 98% across all flake size distributions with simple flotation alone. It can be upgraded to 99.97% battery grade purity.

The operation currently produces concentrate at a capacity of 17,000 tonnes per annum (tpa) and the company has already proposed an expansion that would increase output by nearly nine times to 150,000 tpa.

NextSource has also outlined its future plans to become a vertically integrated global supplier of graphite anode material. It aims to construct multiple battery anode facilities (BAFs) in key jurisdictions, capable of producing coated spherical purified graphite (CSPG) at commercial scale. 

This strategic move aligns with the increasing demand for graphite in battery production for electric vehicles and energy storage systems.

Anglo said its copper output fell 13% in the July to September quarter, while rough diamond production decreased by 25% on cuts due to prolonged lower demand.

Its De Beers diamonds unit is exploring options for further output cuts in future, Anglo said.

For the first nine months of 2024, copper output fell 4% to 575,000 tons and diamond production was down 21% at 18.9 million carats.

Anglo still expects to produce 730,000-790,000 tons of copper and 23-26 million carats of rough diamonds this year, even as it assesses additional production cuts going forward.

Its shares, which have risen around 18% this year, opened up 2.2%.

The mining giant is restructuring its business to mainly focus on energy transition metal copper after fending off a $49 billion takeover offer from bigger rival BHP Group in May.

Copper will make up 60% of Anglo’s business after it sells its Australian steelmaking coal assets and nickel mines in Brazil, as well as divesting De Beers and its platinum business Amplats in South Africa.

Apart from its copper assets in Chile, Anglo will also retain iron ore mines in South Africa and Brazil, as well as the Woodsmith fertilizer project in the United Kingdom, which it has now slowed down.

Anglo said steelmaking coal’s production fell by 6% in the third quarter after shutting its Grosvenor mine in Queensland due to an underground fire.

The London-listed miner, the world’s third-largest exporter of metallurgical coal, lowered its yearly production guidance to 14-15.5 million tons from a previous forecast of 15-17 million.

Anglo said the final round of bidders for the coal assets was in place and it expected to announce the sale agreement within months.

(By Clara Denina and Felix Njini; Editing by Stephen Coates and Mark Potter)

The funding involves Wheaton Precious Metals (TSX, NYSE, LON: WPN) and strategic shareholder Zijin Mining, increasing Montage’s available liquidity to approximately $968 million, including $143 million in cash reserves.

Wheaton has committed to acquire 19.5% of payable gold production from the Koné mine, until 400,000 ounces delivery, for a total upfront cash consideration of $625 million. The sum will be paid in four equal instalments during construction. Wheaton will then reduce the amount of gold to be purchased to 10.8% until 130 additional Koz, then 5.4% for the mine’s life. 

Additionally, the company is providing Montage a $75 million secured debt facility for project costs.

“With essential permits in place coupled with its impressive scale, we believe the Koné Project stands out as one of the premier gold assets in Africa,” Wheaton Precious Metals chief executive officer Randy Smallwood said in a separate statement.

“Supported by strong shareholder backing from the Lundin Group and Zijin Mining, the Koné project is expected to significantly boost Wheaton’s near-term annual gold production and further strengthen our peer-leading growth trajectory,” Smallwood noted. 

Zijin Mining is providing Montage with $125 million in funding, comprised of a $50m loan facility with a nine year tenure and a $75m fully redeemable subordinated gold stream.

“We are extremely pleased to have concluded our financing through the formation of strategic partnerships with both Wheaton and Zijin who share our vision of creating a premier African gold producer,” Montage CEO Martino De Ciccio said.

“With the financing milestone now achieved, we look forward to soon launching the construction of our Koné project, which is set to become West-Africa’s next sizable, long-life, low production-cost gold mine, and poised to unlock value for all stakeholders,” De Ciccio said.

This is Montage’s third successful financing of 2024, following an upsized private placement of $180 million in August and a $35 million placement in March.

The Koné mine is expected to produce 300,000 ounces of gold annually in the first eight years, with production starting in early 2027. The estimated mine life of Koné has been pegged at 16 years.

Other notable names include Anglo American (LON: AAL), Newmont (TSX: NGT, NYSE: NEM), Vale (NYSE: VALE), Agnico Eagle Mines (TSX, NYSE: AEM), Glencore (LON: GLEN), AngloGold Ashanti (NYSE: AU) and Teck Resources (TSX: TECK.A, TECK.B, NYSE: TECK).

To make the list, Forbes teamed up with market research firm Statista and surveyed more than 300,000 employees in over 50 countries who work for multinational corporate groups that meet the following criteria: employ more than 1,000 workers and operate in at least two of the six continental regions (Africa, Asia, Europe, Latin America and the Caribbean, North America and Oceania).

Respondents were asked whether they would recommend their company to family or friends, and to rate it based on such criteria as salary, talent development and remote work options. They could also rate companies they knew through their own industry knowledge and through friends and family who worked there.

Survey responses were then analyzed and tallied — along with data from the previous three years — with a heavier weight placed on the more recent data and evaluations from current employees.

While the number of honorees per country varied based on the population and qualifying companies in each area, a total of 850 companies spanning 48 countries earned a ranking on Forbes’ final list.

BHP topped all mining companies under the raw materials category, with a ranking of 90. After that, Anglo American was the highest ranked company at No. 251, followed by Newmont at No. 474, Vale at No. 502, Agnico at No. 649, Glencore at No. 675, AngloGold at No. 789, Teck at No. 797 and Poland’s KGHM at No. 823.

The demo plant represents a smaller-scale, direct copy of the company’s proposed commercial plant in Botswana, where it is developing the K.Hill project that is estimated to contain over 2.2 million tonnes of manganese oxide resources.

A preliminary economic assessment last year gave the K.Hill project a base case post-tax net present value (discounted at 8%) of $984 million and an internal rate of return of 29%. Over a projected 57-year life, the project is expected to supply over 3.5 million tonnes of high-purity manganese sulphate monohydrate (HPMSM) to the electric vehicle battery industry.

Through the demo plant, Giyani is looking to better understand how the proposed commercial plant in southern Botswana will respond in advance of commissioning and ramp-up of that facility, which is planned for 2027 and is expected to be built next to its manganese oxide ore source.

The demo plant, says Giyani, will also enable further optimization of the engineering design and flowsheet to reduce operating costs and carbon profiles, in parallel with the definitive feasibility study that is underway and expected to be completed in 2025.

Once construction is completed, the facility will be the largest HPMSM demo plant globally, the company says. Production from the plant is estimated to be 600 kg per day, and the HPMSM material will be provided to offtakers for testing and qualification.

“The superiority of the demo plant in kind and size establishes a strong foundation for Giyani to engage with potential offtake partners and offers Giyani many advantages that would not be available with other smaller or non-continuous facilities,” Giyani CEO Charles FitzRoy said.

“In particular, the continuous process flow of the demo plant will allow the team to target steady-state operations over extended periods, consequently proving Giyani’s ability to produce consistent battery-grade manganese and satisfy offtake requirements,” he added.

“Similarly, continuous operation at pre-commercial scale provides critical information for understanding how the commercial plant will respond, significantly de-risking the project.”

Australia’s Lucapa achieved third-quarter revenue of $16.9 million, an 86% year-on-year increase, driven mainly by the sale of high-quality diamonds, averaging $3,033 per carat. 

This growth was also attributed to the company’s access to higher-grade mining blocks, a result of strategic river diversions aimed at mitigating the impact of flooding at the Lulo operation in Angola.

Nick Selby, Lucapa’s managing director, expressed optimism about the future, especially with the access gained to the higher-grade Lazaria gravel, historically known for producing large, high-value diamonds. 

“We are aiming for a strong finish to the year,” Selby said, noting that the company sold a 176-carat diamond for $3 million, further boosting results.

Africa-focused Petra Diamonds also reported promising figures, with production rising by 7% to 679,625 carats for the quarter ended September 30. The increase was driven by higher grades at the company’s flagship Cullinan mine in South Africa and its Williamson mine in Tanzania.

Petra’s chief executive officer, Richard Duffy, attributed this growth to “solid performances” from these mines, despite weaker market conditions.

To counteract the softness in the rough diamond market, Petra deferred in August the sale of a significant portion of its South African diamonds. Its combined first and second tenders, however, indicated a 13% increase in overall average prices, thanks to an improved product mix, which included a standout 18.85-carat blue diamond from Cullinan that fetched $8.5 million.

Despite ongoing challenges in the global diamond market, both Lucapa and Petra’s results reflect resilience and strategic adjustments, injecting cautious optimism into a sector eager for recovery. 

As both companies continue to leverage high-value diamonds and strategic planning, industry observers remain hopeful for sustained market improvements heading into the end of the year holidays, which tend to help boost diamond sales.

The agreement, following a visit by a Nigerien delegation to Turkey, aims to help Turkish companies undertake exploration in Niger, Turkish Energy Minister Alparslan Bayraktar wrote on X, without elaborating on the nature of potential projects.

The two sides met to see where “Turkish companies could get involved in Niger’s mining sector,” said Ibrahim Hamidou, head of communications for Prime Minister Ali Lamine Zeine.

It’s unclear if Niger, which has been controlled by a junta since a coup last year and is one of the world’s biggest uranium producers, is weighing giving Turkey access to undeveloped or existing mines.

The military government revoked uranium permits from French and Canadian companies shortly after coming to power. Since then Russia has sought to take over some assets, capitalizing on improved relations with a string of African nations rocked by coups last year.

Turkish state mining firm Maden Tetkik ve Arama Genel Mudurlugu has previously studied gold deposits in Niger, according to its website. In July, Turkish officials including Foreign Minister Hakan Fidan and spy chief Ibrahim Kalin visited as part of Ankara’s efforts to secure access to uranium.

President Recep Tayyip Erdogan has long sought to deepen Turkey’s ties in Africa. As part of that, he’s seeking sources of uranium for the country’s nascent nuclear-power industry.

(By Patrick Sykes and Katarina Höije)

The nation has an ambitious plan to more than quadruple production by early next decade. The increase would require companies to spend billions of dollars to transform early stage projects into operating mines.

More than 40 permits reserved by the nation’s Mines Ministry will be transferred to a state company, which will then negotiate agreements with partners, Jito Kayumba, President Hakainde Hichilema’s special assistant for finance and investment, said in an interview. The government firm will hold significant minority but non-operational stakes in the ventures, he said.

“The appetite is illustrated in the numerous unsolicited offers we receive,” Kayumba said by phone.

Subsidiaries of miners First Quantum Minerals Ltd. and Barrick Gold Corp. accounted for about two-thirds of output last year. Those firms are already working on increasing production in the years ahead. Units of Abu Dhabi’s International Resources Holding, Vedanta Resources Ltd. and China Nonferrous Mining Corp. also operate mines in the country.

The state company, which will be owned by Zambia’s Industrial Development Corp., will contribute with the licenses and the results of a government-funded aerial geophysical survey, according to Kayumba.

The nation is also urging investors seeking minority interests in mining assets – such as Saudi Arabia’s Manara Minerals Investment Co. – to team up with an operating partner and the state to develop the available greenfield projects, Kayumba said.

(By William Clowes)

Shares of the Swedish company were down 3.3% at 1032 GMT.

Sandvik, among the first of the Nordic industrials to report quarterly results, is considered a reliable indicator of demand given its broad customer base.

Quarterly order intake excluding acquisitions rose 2% organically to 28.8 billion Swedish crowns ($2.73 billion), driven by solid demand in the mining and software businesses despite challenges in other segments.

“The softer demand was broad-based, but most negative in Europe, and the low demand from the automotive industry notable in all regions,” CEO Stefan Widing said in a statement.

JPMorgan analysts said the results missed expectations across key metrics, hit by tough demand environment especially in Sandvik’s cutting tools and infrastructure units, while mining remained solid.

“The earlier hoped for improvement in markets condition has clearly not come through,” they wrote in a note to clients.

China’s stimulus package, which aims to refinance local government debt to boost construction but lacks specific spending details, has sparked concerns of lower demand for mining equipment makers like Sandvik.

Widing told reporters on a call that it was too early to assess the full impact of the stimulus package, but said he viewed it as a positive step that could help revive economic activity in China.

Sandvik’s adjusted operating profit fell 7% from a year earlier to 5.38 billion crowns in the third quarter, missing a mean forecast of 5.68 billion crowns from analysts polled by LSEG.

Items affecting comparability, mainly restructuring costs, had a negative impact of 455 million crowns on its unadjusted figures.

($1 = 10.5315 Swedish crowns)

(By Jesus Calero; Editing by Milla Nissi)

A crowd of about 500 people later gathered at a village near the Montepuez ruby mine in northeastern Mozambique intending to enter the mine, Gilbertson said by text message. Ruby-smuggling syndicates had ignited a disinformation campaign earlier that the company “opened its mine for mining by anyone” for 24 hours when it hadn’t, he said.

“This campaign is fake” and was promoted by ruby-smuggling syndicates, the company said in a statement. “Two people suffered firearm injuries when police responded to escalating aggression.”

Gemfields shares fell 2.5% by 10 a.m. in Johannesburg on Monday.

The company has faced repeated incursions at the mine site, located in one of Mozambique’s poorest regions. In 2019, the company reached a settlement over allegations of human-rights abuses around the operation. It didn’t admit liability.

Political tensions have been high in Mozambique since the Oct. 9 general election. Multiple observer organizations have raised questions over the credibility of the nation’s election process.

Opposition leader Venâncio Mondlane, 50, has called for street protests on Monday after his legal adviser, Elvino Dias, was gunned down by unknown gunmen.

At a Sept. 29 campaign rally in Montepuez, Mondlane brought a populist message, saying that only foreign companies won licenses to exploit the gems, and locals gained nothing from the resources. Artisanal diggers should get permits, he said to cheers.

Montepuez Ruby Mining’s security personnel, including police officers assigned to protect the concession, attend mandatory human-rights training, Gemfields said.

(By Matthew Hill)

The Lafigue mine, inaugurated on Saturday, is located about 500 kilometres northeast of the commercial capital Abidjan, in the Dabakala region. It began gold production in early August and is expected to produce between 90,000 and 100,000 ounces by the end of the year, the company said.

In a statement, Endeavour said it had invested 250 billion CFA francs ($415 million) in the project, which it expects to have a minimum mine life expectancy of 13 years.

It said the mine could contribute more than 380 billion CFA francs in taxes and revenue to the West African nation.

“With Lafigue, we are shaping the future of Endeavour in Cote d’Ivoire,” Endeavour CEO Ian Cockerill said at the inauguration ceremony.

“Our partnership with Cote d’Ivoire, which already features two operating mines, Lafigue and Ity, is a growing one.”

He cited the Tanda-Iguela site, discovered in 2022, where exploration is ongoing, and which he said could become another “flagship asset” for Endeavour.

Ivory Coast, the world’s top cocoa producer, is seeking to develop its long-neglected mining sector to diversify its income streams.

Mines Minister Mamadou Sangafowa Coulibaly in June told Reuters that the country’s gold output could reach at least 100 metric tons per year within the next five years.

Other mining companies operating in Ivory Coast include Barrick Gold, Perseus Mining and Roxgold.

(By Loucoumane Coulibaly; Editing by Portia Crowe and David Evans)

Explorers and developers often overstate the certainty of mineral resource classifications based on inadequate data, Desharnais said at an event in Vancouver on Wednesday. The practice has in some instances led to unexpected analyst downgrades, soaring costs and debt, and the derailment of promising assets.

“That classification debt, unfortunately, needs to get paid,” he told about 430 conference participants from 21 countries at CIM’s first Mineral Resources & Mineral Reserves conference. “The CEO may be walking around with a 3-million-oz. resource estimate, but they haven’t earned that classification with sufficient drilling. When the debt comes due, it’s often through painful reclassifications and revisions.”

Decade of missteps

Several recent projects have demonstrated the high cost of classification debt.

Rubicon Resources’ catastrophic 91% downgrade in resource estimates in 2015 stands as one of the most glaring examples. After it began initial production at the F2 gold deposit on its Phoenix property in Ontario’s Red Lake district, the company found the deposit to be uneconomic, shuttering the operation. It had not completed a feasibility study for the high-grade project.

The size of the downgrade blindsided investors and stakeholders, and the company had to undergo a painful restructuring to survive. Rebranded as Battle North Gold, Evolution Mining (ASX: EVN) bought it and its renamed Bateman project in 2021 for $343 million.

In 2018, Pretium Resources promoted the Brucejack gold project in northwestern British Columbia’s Golden Triangle, now owned by Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM), as a high-grade gold deposit. Yet, the asset disappointed when gold production grades fell far below expectations.

The nuggety nature of the gold, with Brucejack’s steeply dipping quartz veins and erratic grade distribution, made it difficult to consistently meet production targets, forcing the company to push tonnage through the mill to compensate for lower-than-expected grades.

Aurora (2018), Rainy River (2019), and Gold Bar (2020) show how resource overestimation hurt Guyana Goldfields, New Gold (TSX: NGD; NYSE: NGD) and McEwen Mining (TSX: MUX; NYSE: MUX). They had to downgrade estimates mid-operation. This triggered mine plan revisions, soaring costs, production delays, and financial strain.

Grade versus geometric risk

Desharnais identifies two types of risk that contribute to resource misclassification: grade risk and geometric risk.

Grade risk reflects patchiness in ore quality, while geometric risk involves uncertainty about the size and shape of mineralized domains within the deposit.

Conditional simulations help assess grade risk, Desharnais said, but tools to quantify geometric risk are lacking.

Companies often overestimate deposit geometry without tighter drilling, leading to costly misjudgments.

“Sparse drilling gives us a simpler picture than reality,” he explained, adding that only closely spaced drilling can reveal the true complexity of orebodies.

Best practices

Mathieu Doucette, a senior geologist at ArcelorMittal (NYSE: MT), talked about the difficulty of classifying resources at Canada’s largest iron mine, the Mont-Wright iron ore mine in Quebec, producing continuously since 1974. Outdated data can affect current resource estimates. He illustrated how mixing in fresh drill holes helps manage geological risk as part of a dynamic model essential to avoid misclassification.

“The first thing [a QP] will do is akin to lighting a torch,” he said. “But everything on the edges is dark, and you can’t really see it. Drill holes are our ability to try and get some information, but sparse data hides the full picture.”

David Machuca-Mory, a principal consultant at SRK Consulting, said fixed models are risky. Deposits can be more unpredictable than they seem. Adaptive methods help ensure estimates reflect reality, reducing the chance of costly surprises.

“Even with dense drilling, some areas remain highly uncertain,” Machuca-Mory said. “Confidence intervals are large, and relying solely on drill spacing doesn’t always guarantee accurate classification.”

Cognitive biases

Desharnais said that misclassification is not just a technical problem; human psychology plays a significant role.

Anchoring bias makes companies stick with initial estimates despite new data. Authority bias pressures geologists and consultants to confirm favourable results to please management or investors.

“The consulting firm wants the next contract,” Desharnais said. “The CEO has family and friends invested and needs good news. These biases create a system where classification debt builds up across projects, only to be paid through painful revisions later.”

Owning up

Desharnais argued for more conservative resource models and said benchmarking against operating mines would help set realistic expectations. He suggested that technical reports include histograms that show the distance between drill holes and classified resources, he added.

“It forces the QP or CP to look at what they’ve done and ask: Does this make sense?” he said. “Transparent reporting would help prevent overly aggressive classifications, ensuring companies earn their resource classifications with sufficient data.”

Such measures may slow development, but they could also reduce the prevalence of misclassified resources in the industry. Desharnais urged geologists to scrutinize each block of material above the cut-off grade.

“Over-promising today only delays the inevitable correction tomorrow,” he said.

“This is like the early days in Chile, the Escondida discoveries and so on,” he said at the Gold Forum Americas in Colorado Springs, referring to Pakistan’s untapped discovery potential.

Bristow said supply constraints for gold and copper and the strong demand are pushing prices higher, while both suffer from weak development pipelines. The company is expanding its Lumwana copper mine in Zambia and Reko Diq in Pakistan, both of which will add to its copper output while driving local economic development.

“Copper has no substitutes,” Bristow said. “It is as strategic as gold is precious, and we’re bringing new copper projects online just as the supply squeeze hits.”

Bristow also addressed the suspension of operations at Barrick’s Porgera gold mine in Papua New Guinea last month due to local clan violence. He reinforced the company’s commitment to making a positive social and environmental impact, especially in emerging markets.

Watch the final part of Bristow’s three-part interview with The Northern Miner’s western editor, Henry Lazenby.

Chemaf — backed by Trafigura Group — spent nine months looking for a buyer before announcing the sale in June to China’s Norin Mining Ltd. Chemaf says it is still working to close that deal, but it has drawn opposition from the government and state miner Gecamines, which owns a key permit that Chemaf leases for its flagship project.

Now, Gecamines is interested in buying the company, according to a person familiar with the matter who declined to be identified because the information isn’t public. They didn’t provide any additional details beyond saying that an offer has been sent to Chemaf.

The battle over Chemaf highlights the efforts of Congo — now the world’s no. 2 copper producer — to assert more control over its mining sector, where China dominates output. Chemaf’s Mutoshi project is set to become one of the world’s largest mines for cobalt, which is extracted alongside copper and used in electric vehicle batteries.

If Gecamines were to acquire the Chemaf unit, it would be a departure for the state miner that’s typically been a minority partner in joint ventures. Congo’s government already owns 5% of the company.

The state firm and Congo’s mines ministry didn’t respond to messages seeking comment.

Chemaf declined to comment in response to questions about Gecamines’ offer. The company “remains committed to completing the proposed transaction with Norin Mining which will enable it to address its overdue loans and trade creditors while securing employment for its local Congolese workforce,” a spokesperson said by email.

Trafigura also declined to comment.

Chemaf has struggled to finish projects including Mutoshi following a slump in cobalt prices. It has said Norin’s proposed takeover would allow it to complete stalled works at two assets and fulfill obligations to creditors.

The company also owns dozens of undeveloped copper and cobalt licenses in Congo. Chemaf previously said it had about $690 million of debt outstanding as of September 2023.

(By Michael J. Kavanagh and William Clowes)

The London Metal Exchange (LME) cash price, indexed to Platts benchmark Australian alumina assessment, closed Wednesday at $633.35 per metric ton, lifting the ratio to the aluminum price to almost 25%.

The alumina-aluminum ratio was just 15% at the start of 2024, when alumina was priced at $350 per ton.

A series of supply disruptions have driven the alumina price higher this year. The trigger for the latest price jump was news of export problems in Guinea, the major import source of bauxite for China’s alumina refineries.

The physical alumina market is undeniably tight but the explosive nature of the price action also signals a speculative frenzy on the Shanghai Futures Exchange (ShFE).

Shanghai boom

Nearly 25 million tons were transacted on the ShFE alumina contract on Wednesday, a record daily high and equivalent to almost a fifth of global annual production.

Open interest has also soared to life-of-contract highs as investors have bought into a steadily rising market.

The exchange adjusted both trading limits and margins on Thursday, imposing a percentage point premium on speculative positions relative to industrial hedge positions.

This is standard operating procedure for China’s exchanges in the face of speculative surges such as that currently washing into the Shanghai alumina market.

This sort of futures price volatility is a new phenomenon for the alumina market.

Both the LME and its US peer CME Group offer alumina contracts but neither is liquid. The explosive growth in the Shanghai contract, by contrast, has changed the dynamic between paper and physical markets since trading began in June last year.

This is the second bout of turbulence on the Shanghai market after a massive price spike in January, also due to concerns about Guinean bauxite supply.

All eyes on Guinea

The price sensitivity to events in Guinea highlights how dependent China’s alumina refineries have become on West African bauxite.

China’s bauxite mining sector has been hit by multiple waves of environmental inspections, limiting domestic supply and encouraging more alumina refineries to look overseas for their raw material.

Imports of Indonesian bauxite stopped early 2023 after the Indonesian government banned exports in a drive to force its miners downstream into refining and smelting.

Guinea has fast emerged as China’s primary bauxite supplier. Imports doubled between 2000 and 2023 to almost 100 million tons and were up by another 13% in the first eight months of this year.

The January alumina panic was down to an explosion at an oil terminal in the Guinean port of Conakry. This time around it’s news that a local subsidiary of Emirates Global Aluminium has had its bauxite exports suspended by customs.

Although wildly exaggerated, the price reaction in Shanghai is logical, given the lack of alternative bauxite supply and tighter conditions in the alumina market itself.

Supply hits

Alumina supply has taken multiple hits this year.

US producer Alcoa announced in January the permanent closure of its Kwinana refinery in Australia. The ramp-down was scheduled to be completed by the third quarter.

In May Rio Tinto declared force majeure on deliveries from its refineries in Queensland due to restricted gas capacity levels.

Century Aluminum’s operations in Jamaica were briefly interrupted by Hurricane Beryl in September and South32 has flagged concerns about its Australian operations due to conditions on its operating licence required by environmental regulators.

Meanwhile, Chinese demand for alumina has been growing strongly as the country’s smelters have benefited from improved power supply, particularly in the hydro-rich province of Yunnan.

National aluminum output rose by 4.4% year-on-year in the first eight months of 2024 with annualized run-rates increasing by almost 1.5 million tons since December.

That said, China at a national level doesn’t seem to be physically short of alumina since it continues to export significant quantities to Russia.

Indeed, exports to Russia surged by 41% year-on-year to 1.0 million tons in January-April, turning China from net importer to net exporter of the intermediate product.

Future(s) disruption

But physical availability is not the same as exchange availability.

ShFE alumina stocks have dropped by more than half since June to 103,416 tons. The result is time-spread tightness with the premium for cash relative to forward contracts flaring wider this week.

Short-position holders’ ability to deliver physical material will depend on how much alumina is located at ShFE’s four delivery points in the provinces of Shandong, Henan, Gansu and Xinjiang.

Much also hangs on how serious the threat of disruption to Guinean bauxite shipments is. The January scare quickly subsided and there’s no indication the latest incident is the harbinger of a national change of policy around exports.

What has changed, however, is the reaction time to such events.

Before the arrival of the Shanghai futures contract, spot alumina was priced by physical cargo transactions, which can be few and far between in a market dominated by yearly supply contracts.

Now a headline from Guinea can move the futures price in seconds, creating a disconnect between paper and physical markets.

This added volatility is going to make the previously tranquil alumina market a much more turbulent place.

It’s also going to make smelter costs much more unpredictable with a potential knock-on impact on the price of aluminum itself.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Emelia Sithole-Matarise)

Manara, a joint venture between Saudi Arabian mining company Ma’aden and its $925 billion Public Investment Fund, is in advanced talks to acquire between 15% and 20% equity in the Zambian assets, the sources said.

The stake could be worth between $1.5 billion and $2 billion, one of the sources added.

First Quantum’s sale of a stake in the Zambian assets could be concluded by year-end, the sources said. There is no certainty that a deal will be signed as the negotiations are ongoing, they added.

Both First Quantum and Manara Minerals declined to comment on the sale.

The potential deal is in the spotlight as copper is a much sought-after element for the clean energy transition due to its uses in the manufacture of electric cars and data centers powering artificial intelligence.

First Quantum earlier this year said it was in talks with potential investors to sell a partial stake in the Zambian mines, while also exploring the sale of its Spanish mine Las Cruces to raise capital and cut debt after the Panama government ordered the shutdown of its flagship Cobre Panama mine.

Manara has emerged as a front runner for the purchase as the Saudi firm’s strategy to acquire a minority interest fits with First Quantum’s aim to retain a majority stake in the mines, said the sources, who did not wish to be quoted as they are not authorized to speak with media.

First Quantum owns the Kansanshi and Sentinel copper mines in Zambia, which have become key to future output after Cobre Panama’s shutdown. First Quantum also owns the Enterprise nickel mine in the country.

“This is not a surprise – First Quantum has disclosed exploring a sale to shore up its balance sheet and the Saudis have been increasingly active in acquiring mining stakes,” Citigroup analysts said in a note after Reuters‘ story.

First Quantum shares rose as much as 4.9% in early morning trade in Toronto.

The Zambian mines contributed $1.08 billion to First Quantum’s revenue in the second quarter of this year. Zambian state firm ZCCM-IH owns 20% of Kansanshi.

First Quantum plans to spend an additional $1.3 billion at Kansanshi over the next five years, part of a $2 billion spending plan to raise copper output to about 277,000 tons per year by 2033 from about 130,000 tons in 2023.

The Canadian miner has shed 40% of its revenue due to the closure of its flagship Cobre Panama mine last November, which when operational was one of the newest and biggest copper mines of the world.

The company had to undertake a series of capital restructuring measures earlier this year to strengthen its balance sheet, including a share offering worth $1 billion.

Manara has made significant investments in metals including copper, nickel and lithium as part of Saudi Arabia’s aggressive push to secure minerals and transform into a hub for battery and electric vehicle manufacturing.

The firm is also in talks with the Pakistan government to be part of the Reko Diq copper mine currently under development, which is owned by Barrick Gold, Pakistan state enterprises and the provincial government of Balochistan.

An anticipated rally in the price of copper, spurred by a widening supply gap, is expected to continue to support the metal above $10,000 per ton by the end of 2025, according to Bank of America.

(By Divya Rajagopal, Clara Denina and Felix Njini; Editing by Veronica Brown and Jan Harvey)

Eramet announced the lowered forecasts late on Tuesday, citing a downturn in the manganese market and a smaller-than-expected permit allowance in Indonesia.

The Moanda mine in Gabon and the Weda Bay mine in Indonesia have driven Eramet’s growth, as its historic nickel operation in New Caledonia has been drained by losses and social unrest.

Analysts at ODDO BHF called the news “another setback” for Eramet, following its July reduction of 2024 targets for ore output in Gabon and Indonesia, while also trimming short-term targets for a new lithium mine in Argentina.

Eramet attributed the deterioration in the manganese market to falling Chinese output of carbon steel — which requires manganese in its production — and an influx of low-grade ore after a price surge earlier this year.

The company’s full-year sales volumes of high-grade manganese ore are estimated to be between 6.0 and 6.5 million tonnes in 2024, of which approximately 700,000 tonnes are internal sales.

As a result, Eramet has decided to suspend ore production at the Moanda mine for a minimum of three weeks. According to the company, sales and shipments will continue during this period.

The 2024 volume target for produced and transported manganese ore was revised to between 6.5 and 7.0 million tonnes, down from the previous 7.0 to 7.5 million tonnes.

In Indonesia, the mines ministry this week issued PT Weda Bay Nickel, Eramet’s joint venture with Chinese group Tsingshan, a revised allowance of 32 million wet tonnes annually for 2024-2026, including 3 million for internal sales, according to Eramet.

As a result, the operation’s 2024 volume target for external marketable nickel ore has been revised to 29 million wet tonnes, down from the previous 40 to 42 million tonnes. Eramet noted that the impact on the operation’s 2024 financial performance is expected to be largely offset by higher ore premiums due to domestic supply restrictions.

(With files from Reuters)

The results showed a significant increase in uranium recovery rates compared to those outlined in the 2023 technical report. In particular, the main deposits, Muntanga and Dibbwi East, which account for 80% of the measured and indicated resources, achieved recoveries of 90% or better.

These results, said GoviEx, helped to demonstrate the efficiency of its heap leach process and validate the work completed by the previous project owners. They also raised the level of confidence in the company’s feasibility study, which it expects to complete before year-end.

The tests were carried out at Mintek, in South Africa, involving six-metre sulfuric acid column leaching for each of the six mineralization zones across the Muntanga project, based on new material derived from the 2023 diamond drilling program. The test work was considerably more extensive than the previous work undertaken, which was predominantly limited to two-metre leach columns.

GoviEx noted that the discovery of the Dibbwi East deposit occurred after the previous column test work was completed in 2013. Drilling conducted between 2021 and 2023 increased the total resource of the Dibbwi East deposit by 60% in contained tonnes. This not only expanded the deposit but also extended it into primary mineralization, in addition to the secondary (oxidized) mineralization that had been the focus of earlier test work.

“With high uranium recoveries of 90% or better for the Muntanga and Dibbwi East deposits and overall low acid consumption, the data provides further confidence in the project’s processing design, helping to refine key assumptions and parameters for the upcoming feasibility study,” GoviEx Uranium CEO Daniel Major said in a statement.

Zambia: new focus

The Muntanga project has become GoviEx’s main focus after seeing its mining permits for the Madaouela project in Niger revoked. The Muntanga property encompasses three mining licences plus three exploration licences with a total combined area of 1,226 km².

Two of the mining licences comprising the Muntanga, Dibbwi and Dibbwi East deposits were acquired from Denison Mines in 2016, while the mining licence covering the Njame (north and south) and Gwabi were acquired from AFR a year later.

Across the five deposits, located over a 65 km strike, there are an estimated 42.6 million tonnes in measured and indicated resources at an average grade of 359 ppm uranium oxide (U₃O₈), containing 33.7 million lb. of U₃O₈, and 15 million tonnes inferred at 330 ppm U₃O₈, containing 10.9 million lb. of U₃O₈.

Shares of GoviEx Uranium surged 11.8% to C$0.095 following the update, taking its market capitalization to C$77.4 million. The stock had plunged to a 52-week low of C$0.045 in August after the company’s setback in Niger.