Africa commodities

"A ripe melon falls by itself" - Zimbabwe proverb

Commodities to light Africa's jets

Katanga, Nikanor tie-up to create African mining giant

 In a bid to create the world's largest cobalt producer and the leading copper miner in Africa, Katanga Mining Ltd. is merging with rival Nikanor PLC to form an African mining powerhouse with a market value of roughly $3.3-billion (U.S.). read Katanga African next Mining Giant

Steven Paxton's photo of Tanzanian children waiting for rain clouds to burst 

A group of children pose under darkening skies in Tanzania, Lake Mtera

People throughout South Africa, and particularly in rural communities, have lost their lives because weather warnings did not reach them in time. read Africa weather

Africa Ecotourism

Tiny island nation seeks a place in Africa's growing ecotourism business

Sierra Leone Diamonds : Sierra Leone looks for extra shine from diamonds . 

Blueberry farm

The South African Blueberry Company is located in Franschhoek South Africa, the heart of Africa's wine producing area.

 Though wine grapes are grown, our specialty is export blueberries, grown in the southern hemisphere, which make them available from mid October for three weeks, or weeks 42 - 44.

Oskar Steffen, co-founder of SRK Africa commodities Consulting
Does making over $3,000 in a week from 5 hours of work sound too good to be true?  What if I told you that my friend Jon Leger made that much by selling a 30 page report for only $7 each? Sound incredible? read  7 dollars secret   

David McKay Posted: Thu, 13 Apr 2006 found at miningmx.com

 Buy textbooks for less at Abebooks.com

So it’s interesting to note his view that the current bull market in mining and resources is probably the most prospective for Africa. “Nothing in the past comes close to what’s happening at the moment from an African perspective,” says Steffen.

Diamonds in Angola, copper, cobalt and gold in the Democratic Republic of Congo and the gold mines of Mali and Ghana are typical of the new investment interest in Africa. Steffen likens the new prospects to the opening of the Zambian Copperbelt in the Sixties or the discovery of gold reserves in South Africa’s Free State province.

Conversely, exploration activity has shrunk in South Africa. According to a survey by consultancy company Mineral Economics of the world’s major mining companies, around 26% of that spend was by South African firms, equal to $469m last year – R2.8bn. However, the survey shows that South African firms are spending only 5% of their budgets – $3m – in South Africa.

Steffen thinks shrinking investment in South Africa’s mining sector isn’t necessarily linked to political risk or a statement of no confidence. “It’s not a statement of faith but a question of enterprise. Mining companies will continue to develop South Africa – but in relation to the overall package.”

But there are domestic challenges. The Chamber of Mines of South Africa reported that gold production for 2005 fell 13%, representing its lowest level in 83 years. But at 296 tons, South Africa’s gold production shouldn’t fall lower. “My point here is that the mines will continue because of the price – the gold mining industry is dependent on price.”

And there are concerns. South African gold mines are locked into a long-term fixed cost that’s unsurprisingly high. And there’s a lack of flexibility owing to their maturity.

Bernard Swanepoel, CEO of Harmony Gold, has commented that it’s one of the few building South Africa’s gold mines of tomorrow. He might one day be the sole owner of significant South African gold output.

The relationship between Harmony Gold and SRK has been an interesting one. It was during Harmony’s hostile bid for Gold Fields that SRK was forced into the public eye. That was after Gold Fields asked Harmony to restate its reserves, a development that would have fundamentally affected the value in Harmony’s all-paper bid.

At that time, SRK was advising concerning Harmony’s reserves and resources statements and was forced into the limelight as a result.

Nonetheless, it’s important for mining companies to continue to speculate on the extent of resources. “If you just stick to proven and probable reserve statements, existing and future shareholders are only buying money with money. People buy gold companies for their blue sky (inferred resources),” says Steffen.

Steffen is considering playing more golf in retirement but doesn't expect to actually stop working. He doesn’t believe either that they’ll ever be a time when SRK will list, though another consulting business, Bateman Holdings, recently listed in London. “As constituted now there’s no appeal for existing shareholders to list. Private shareholders are what make the business grow. We’d also have to have a policy of acquisition [and consequently require access to capital]. That’s not our business.”

[ Home ] [ Africa commodities ] [ amazonbooks ] [ webmaster business tools ] [ african american business ] [ African lawyer ] [ hot zone war ] [ Africa China Business ] [ Africa India Business ] [ business travel ] [ African Countries ] [ african culture ] [ African Food ] [ business africain ] [ contact me ]

Share & Save Article: 
Home
-----------------
site map
-----------------
Recent Articles:

African Development Bank
80 Percent of African Countries Register Growth in 2009 - African Economic Outlook Report

South African bank Stocks African Bank stocks

african business A continent of opportunities

your finance job

More sites:

art africain

reverse number search

Diamonds Business News
Discover a World of diamond and jewelry 
http://www.excellentdiamonds.com/   

business foreclosure
The decline of the US real estate mortgage

news marketing
info you need .. 

news weather info
Find weather widgets and news