Africa > East Africa > Petroleum / Mining

Petroleum / Mining in East Africa

  • Zambian villagers win right to sue mining company in U.K. over pollution

    ZAMBIA, 2017/10/15 Nearly 2,000 Zambian villagers have won the right to sue Vedanta Resources in the English courts in a ruling that could lead to other multinationals being pursued in London for their activities overseas. London’s Court of Appeal on Friday threw out miner Vedanta’s attempt to block the Zambians’ legal action over alleged pollution of their villages. Vedanta said in a statement it would seek the right to appeal to the Supreme Court, the highest in the English legal system, adding the decision was on jurisdiction only and “was not a ruling or a determination on the merits of the claims”.
  • Union Ready to Fight Retrenchments at South African Gold Mine

    SOUTH AFRICA, 2017/08/07 The National Union of Mineworkers (NUM) is shocked and disgusted next it received Section 189 notice today from Sibanye Gold to retrench 7 400 permanent employees at Beatrix West and Cooke Operations. The number excludes close to 3 000 contractors who are as well facing these retrenchments.
  • Museveni, Magufuli Reaffirm Political Will for Oil Pipeline

    TANZANIA, 2017/08/07 President Museveni and his Tanzanian counterpart John Pombe Magufuli, last Saturday laid the initial foundation stone for construction of the proposed East African Crude Oil Pipeline (EACOP), as a gesture for joint political will, for the development of the multi-billion dollar project within the stated timeframe. The event that attracted hundreds of residents at Chongoleani, in the northerly seaport city of Tanga in Tanzania, as well symbolised the start of the construction of the $3.5b (about Shs12.6 trillion) pipeline. It will run from Hoima in mid-western Uganda to Tanga port at the Indian Ocean.
  • All Bets Are Off As Magufuli's Resource Nationalism Moves Up a Gear in Tanzania

    TANZANIA, 2017/08/01 The Tanzanian government has asked Acacia Mining, a subsidiary of the world's major gold mining company Barrick Gold, to pay approximately USD$190 billion in revised taxes, interest and fines. This new development is a game changer in a dispute that pits mining companies against President John Magufuli's government. It makes both nationalisation and mine closures additional likely. Until this revised tax notice was served, the overhaul of Tanzania's mining regime had a great transaction going for it. Previous policy had given miners an easy ride. Low taxes and generous license terms were sweetened by further tax breaks and exemptions.
  • Tanzania: Searchlight Cast On Barrick the Government Seeks Fair Share of Mining Sector Revenues

    TANZANIA, 2017/08/01 FINALLY, the appropriate team formed by President John Magufuli is down to business as it started, yesterday, discussions with officials from Barrick Gold, the parent company of Acacia Mining, on its operations in Tanzania as the government seeks to reap its equitable share of proceeds from the lucrative mining industry. This comes next two presidential committees exposed anomalies in declarations of the quantity and price of copper concentrates produced by the company. The Minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi, will lead the Tanzanian team while Mr Richard Williams, the Chief Operating Officer for Barrick Gold, is leading the team from the miner.
  • Acacia Mining aims resume dividend if Tanzania export ban ends

    TANZANIA, 2017/07/22 Acacia Mining aims to reinstate its dividend in early 2018 if Tanzania ends a concentrate export ban that forced the miner to abandon a payout for the initial time, it said on Friday. Shares were down 10 % by 1226 GMT next before touching their lowest since February 2016 at 242 pence. Since the ban was imposed in March the London-listed Acacia, majority owned by Barrick Gold, has nearly halved in price and is burning $10 million to 15 million of cash a month.
  • Tanzania's Magufuli threatens to shut mines if firms delay tax talks

    TANZANIA, 2017/07/22 Tanzania's President John Magufuli has threatened to close down all gold mines in the country if mining companies delay talks with his government aimed at resolving allegations of tax evasion. The announcement by Magufuli, nicknamed "the Bulldozer" for his forceful leadership style, marks a further escalation of a dispute with foreign companies like Acacia Mining over export revenues.
  • The SADC Wrap: Magufuli marches on against mines

    BOTSWANA, 2017/07/17 Tanzania’s president John Magufuli last week left mining houses reeling next signing into law a set of bills that would radically alter the playing field. The new laws allow the country to renegotiate all of its current mining contracts, increase royalties, and partially nationalise mining projects. “The laws as well deny the rights of mining companies to seek international arbitration and relief in the event of a dispute with the government,” reports The West Australian.
  • Tanzania: Miners, Govt to Benefit From Resource Estimation Project

    TANZANIA, 2017/07/16 The government is expected to spend a whopping Sh8.2 billion for mineral resources estimation, a project that would end challenges facing small scale miners. The project, which is bankrolled by the World Bank (WB), will be carried out at seven centres countrywide during the initial phase. Speaking at Buhemba mining area yesterday, the Acting Director of Exploration and Drilling from National Mining Corporation (Stamico), Mr Alex Rutagwelela, said the project would result into a win-win situation where the miners and government will benefit equally.
  • Geopolitics To Drive Oil Prices Once Again

    WORLD, 2017/07/09 I have picked up three news items from Oil & Energy Insider that supports my hypothesis that US Shale output will continue to rise. However, some of the oil producing nations may become victim of commotion, anarchy and proxy wars. This will automatically reduce the supplies from these nations. OPEC may as well opt not to extend cut anymore. Energy sector analysts are desperately awaits the outcome of OPEC’ conference in Vienna scheduled for 25th May. While the overwhelming expectation is that the cartel will acknowledge on a six-month extension of the production cuts. However, presently top OPEC officials are wondering if it will be enough. OPEC’s monthly statement revised expected US shale increase sharply upwards, predicting output to increase 64 % additional than originally expected. That equates to projected increase from US shale of 950,000 bpd this year. OPEC fears that an extension will boost prices just enough to allow shale companies to lock in hedges once again, ensuring an extra wave of supply.