The project could cut Cimaf’s clinker import expenses, push the company’s annual cement output to a million tons, and create around 2,000 direct and indirect jobs.

Cimaf Gabon is considering building a new clinker grinding unit in the Central African country. The facility could cost about $147.1 million to set up, according to the firm. The new clinker grinding facility should be built in Meba, within the Estuaire province.

Janah Idrissi El Mehdi, the Managing Director of Cimaf Gabon, disclosed the project's cost during a recent visit by the Minister of Industry, François Mbongo Rafemo Bourdette, to the company's headquarters. El Mehdi emphasized that the investment seeks to leverage the local industrial fabric, create employment opportunities, and stabilize cement prices.

Cimaf Gabon expects its cement output to reach a million tons per year with the new plant. The company currently produces 850,000 t of cement for a local demand estimated at 600,000 t per year.  "We currently import around 30 million euros worth of clinker. The idea behind this investment is to be able to enhance the local industrial fabric and at the same time enable job creation in the key, of the order of 1,500 jobs in the project phase, and then afterwards the equivalent of 500 jobs in the operating phase. And also in parallel a stabilization of cement prices", El Mehdi said. According to the executive, the plant was initially producing 500,000 t, but production was ramped up “to meet market demands and the government’s ambitions”.

According to the latest economic report from the Ministry of Economy, the cement production index declined by 14% in the third quarter of 2023 compared to the previous quarter. This downturn is attributed to reduced construction activity, primarily due to household investment postponements during the general election period, despite favorable weather conditions.

Cimaf is a subsidiary of Ciments de l’Atlas (Cimat), a Moroccan group active in the cement industry.

Sandrine Gaingne

The Mana gold mine produced 142,000 ounces in 2023. This year, the mine’s owner, Endeavour, seeks to ramp up its output to 170,000 ounces. The Burkina Faso government holds 10% of the mine.

Endeavour Mining temporarily halted underground operations at its Mana gold mine in Burkina Faso. The firm announced the news on February 28, a day after one of its subcontractors died due to injuries sustained during maintenance activities at the mine.

Endeavour Mining assured that it would investigate the accident in collaboration with local authorities.  "The health, safety, and well-being of our colleagues are our top priority, and this news deeply saddens us," the London-based firm wrote.

Mana is one of Endeavour's two remaining gold mines in Burkina Faso, following the sale of the Boungou and Wahgnion mines in 2023. Last year, the Mana mine produced 142,000 ounces of gold. Endeavour Mining expects the mine to produce between 150,000 and 170,000 ounces this year. However, any prolonged interruption of underground operations could impact these projections, although processing activities at the mine continue uninterrupted.

Spurred by the recent rise in uranium prices and long-term demand for the ore, mining firms are accelerating their projects worldwide. In January, the price of uranium passed $100, amidst concerns about supply in the medium term.

Aura Energy now expects $2.25 billion in revenues from its Tiris uranium mine in Mauritania. The company disclosed the figure in a FEED study released on February 28. It is 44% more than the amount forecast in the optimized feasibility study issued in March 2023.

The team at Aura have produced an Investor Update outlining the strong outcomes of the Tiris FEED study.
Stay tuned for an opportunity to hear from MD, Andrew Grove.https://t.co/78mZRv98ch #cleanenergy #uranium #development #Mauritania $AEE pic.twitter.com/aig59JB8px

— Aura Energy Limited (@aee_auraenergy) February 28, 2024

The FEED was based on a higher uranium benchmark price of $80 per pound, compared with $65 last March, against a backdrop of rising metal prices

The price of uranium passed $100 per pound in January 2024, a record not achieved since 2007. Observers attribute the surge to the growing interest in nuclear power globally. Global nuclear energy capacity could triple by 2050, according to recent forecasts.  Concerns over supply constraints also contributed to the increase. Among others, Kazatomprom, the world's top uranium producer, announced it would not meet its production targets for 2024 and 2025.

The increase should persist in the medium term, according to observers. Shaw and Partners, an Australian company, foresees uranium peaking at $150 per pound between 2025 and 2027. The outlook was enough motivation for producers like Aura Energy to pick up the pace on their various projects. Aura Energy, for instance, wants to close sales deals for future production and make investment decisions regarding its Tiris project this year.

Beyond price improvements, increased production forecasts have also contributed to heightened revenue expectations at Tiris. Initially projected to yield 1.6 million pounds of uranium annually over 16 years, Aura now anticipates an annual production of 1.9 million pounds over 17 years, resulting in a total output of 30.1 million pounds. Consequently, the initial capital requirement has risen by 29% to $230 million, with a reduced payback period of 2.5 years compared to the previously estimated 4.5 years. Furthermore, the net present value has increased from $226 million to $366 million, with an internal rate of return of 34%.

Iron and gold are Mauritania’s most exported ores. The country could, however, diversify its revenue sources with the emergence of uranium mining at Tiris. This could mitigate its exposure to fluctuations in gold and iron prices. Aura controls 85% of the Tiris project, with the remaining 15% held by Nouakchott.

Emiliano Tossou

In recent months, Gécamines has intensified negotiations with foreign investors operating copper and cobalt mines in the country. The aim is to seek greater control over valuable resources to boost sector revenue.

Democratic Republic of Congo's state-owned miner Gécamines is seeking more control over copper and cobalt mines by demanding additional board seats in its joint ventures with foreign investors. Board chairman President Guy Robert Lukama announced the initiative as part of efforts to bolster Gécamines' influence in the management of the DRC's copper and cobalt mines.

In comments reported this week by Reuters, Lukama explained that the presence of local executives on boards of directors could enhance transparency, oversight of community development projects, and adherence to regulations on local content and the training of Congolese personnel. To achieve this objective, Gécamines is contemplating the revision of its contracts with foreign investors.

Once a leading copper producer in the 1980s, Gécamines has experienced a decline in performance amid low prices and inadequate investment. To revitalize copper and cobalt production, the DRC has relied on foreign investors, predominantly Chinese, who have secured operating rights for several mines in exchange.

Lukama questioned, "We want to rectify a certain stage of mistakes that were made when they asked us to give most of our best assets to third parties just to attract foreign direct investment [...]. The off-take was there to secure the flows of repayment of debt, now the debt is repaid, why should they keep it 100%."

DRC is the world's leading cobalt producer, accounting for over 80% of the supply in 2023, according to the Cobalt Institute. Additionally, as the third-largest copper producer in the world, the country's bargaining power has strengthened in recent years due to the escalating demand for these two metals crucial to the energy transition.

For instance, last year Gécamines successfully secured a payment of $800 million from China's CMOC after several months of dispute over mining royalties. Furthermore, Gécamines negotiated the right to acquire a portion of the Tenke mine's copper and cobalt production, up to its 20% stake in the project, as well as $1.2 billion in dividends over the mine's remaining life.

Canadian miner First Quantum has been grappling with financial challenges since the abrupt closure of its flagship Cobre Panamá copper mine in late 2023. The company is actively exploring options to secure additional liquidity and maintain operations.

In Zambia, First Quantum Minerals has secured a copper prepayment agreement with its main shareholder, Jiangxi Copper, which will contribute $500 million. The funds will increase the Canadian company's liquidity as it faces the closure of the largest copper mine in its portfolio since late 2023. Panama abruptly ordered the closure of the Cobre Panama mine at the end of November, depriving the company of almost half of its annual production, and First Quantum's market capitalization fell sharply in the aftermath. Concerns also emerged about the company's ability to finance its continued operations, prompting rumors of the sale of one or more copper mines in Zambia.

The company denied these rumors and is examining other options to overcome the crisis. The agreement signed with Jiangxi is part of this process and will enable the Chinese group to obtain annual deliveries of 50,000 tons of copper anodes produced from the Kansanshi mine in Zambia at market prices. To raise further cash, First Quantum is also expected to dispose of minority stakes in its main assets, notably in Zambia, and sell off smaller assets.

"Constructive discussions with our lenders for an amendment and extension of our loan facilities, which are an important component to our fulsome solution, are well-advanced," said Tristan Pascall, the company's CEO.

First Quantum Minerals' current portfolio includes the Sentinel and Kansanshi copper mines in Zambia, which delivered 349,000 tons in 2023, out of total production of 708,000 tons. The company also operates the Pyhäsalmi (Finland), Cobre Las Cruces (Spain), Çayeli (Turkey), and Guelb Moghrein copper mines in Mauritania.

First Quantum, the leading copper producer in Zambia, aims to produce 370,000 to 420,000 tons of copper by 2024, including at least 350,000 tons from its two Zambian mines. 

Emiliano Tossou

Canadian gold miner Perseus Mining, having produced over 500,000 ounces in 2023 from its three operating mines in West Africa, is actively pursuing portfolio expansion. The company made a takeover bid for the owner of a gold project in Tanzania.

Canadian gold miner Perseus Mining announced a cooperation agreement with Saudi Arabia's Ajlan & Bros Mining & Metals Company (ABM) on February 21, targeting joint investments in North Africa and Saudi Arabia.

The partnership will explore co-investing in gold projects across Algeria, Eritrea, Ethiopia, Egypt, and Sudan, prioritizing those with pre-feasibility or feasibility studies already conducted. Early-stage projects may also be considered, though specific investment amounts remain undisclosed.

"To be gaining access to these areas in partnership with a Saudi-based company gives us a high level of confidence that we will be well equipped to manage the culturally different settings that we may encounter and to navigate the challenges that arise in these jurisdictions from time to time,"  commented Perseus CEO Jeff Quartermaine.

Based in Australia, Perseus currently operates three gold mines in West Africa: Sissingué and Yaouré in Côte d'Ivoire and Edikan in Ghana. It also holds a 70% stake in Sudan's Meyas Sand gold project and is pursuing a takeover of the Nyanzaga gold project in Tanzania through OreCorp acquisition. In 2023, Perseus produced 528,486 ounces of gold from its West African mines. 

Emiliano Tossou

Canadian miner Lucara Diamond, operating the Karowe mine in Botswana, Africa's top diamond producer, recovered 335,769 carats of rough diamonds in 2022.

Lucara Diamond's Karowe mine in Botswana, the world's leading diamond producer, produced 395,134 carats in 2023, an 18% year-on-year increase, the company said on February 20. This meets the lower end of its forecast range of 395,000 to 405,000 carats.

However, revenue generated from the mine fell 16.6% to $177.4 million compared to 2022. Lucara attributed this decline to a combination of factors, including lower global diamond prices and a shift in mined material compared to the prior year. In 2022, the company primarily extracted diamonds from a single zone, while 2023 saw a mix from three different zones.

For 2024, Lucara expects production and sales of 345,000 to 375,000 carats, with projected revenue of $220 million to $250 million. On February 18, the Canadian miner announced a new agreement to sell diamonds above 10.8 carats from Karowe through Belgian trader HB Company. 

In June 2023, Kinross Gold successfully completed the expansion of its Tasiast gold mine. This expansion, launched in in 2019, has allowed the Canadian mining company to surpass an annual production milestone of 600,000 ounces in 2023, making Tasiast not only the largest gold mine in Mauritania but also a key asset in Kinross Gold's portfolio.

On February 14, Kinross Gold unveiled its operational and financial results for FY 2023, which concluded on December 31. The company reported a record gold production of 620,793 ounces (about17.6 tons) at the Tasiast mine, marking a 15% yoy increase.

The Tasiast mine's achievement is largely attributed to the successful completion of the Tasiast 24k expansion project, which increased the mine's initial processing capacity by over 50%. Finalized in June 2023, the project led Tasiast to reach a historic quarterly production peak of 171,140 ounces by the end of September 2023.

The surge in production at Tasiast has the potential to significantly impact the mining sector's contribution to Mauritania's economy. In 2022, the mine's performance enabled gold to surpass iron ore as the country's top export product. According to data from the Extractive Industries Transparency Initiative (EITI), mining accounts for 70% of Mauritania's exports, 24% of its GDP, and nearly 30% of the state's revenue.

Looking ahead to 2024, Kinross aims to produce 610,000 ounces of gold at the Tasiast mine, which would represent 29% of the Canadian group's total expected production. Kinross also operates the Paracatu mine in Brazil, La Coipa in Chile, and the Fort Knox, Round Mountain, and Bald Mountain mines in the United States. Combined, these assets contributed to the company's overall production of 2.15 million ounces in 2023.

Burkina Faso, recognized as one of Africa's leading gold producers, hosts operations by several major international mining companies including Canada's Iamgold and Orezone, Australia's West African Resources, and West Africa's top gold producer, Endeavour Mining.

As of December 31, 2022, six industrial mines in Burkina Faso have not paid their contributions to the Mine Rehabilitation and Closure Fund (FRFM), according to a report presented to the Council of Ministers on February 14 by the Ministry of Energy, Mines, and Quarries. These contributions amount to CFA7.53 billion (about $12.26 million), we learned. The report did not disclose the names of the mines or the 49 industrial quarries that are also behind in their contributions.

The FRFM, funded by companies operating industrial mines as well as those managing semi-mechanized mines and quarry substances, had resources totaling CFA57.13 billion as of December 2022. These funds are allocated to the rehabilitation and closure activities of the country's mines.

In response to the challenges in collecting the resources, the Council has directed the relevant ministers to take specific actions, including the creation of FRFM accounts for industrial mines lacking them and the revision of legislative and regulatory texts governing the fund's operation.

It is noteworthy that the importance of an effective mine closure and rehabilitation process cannot be overstated, as it is crucial for mitigating the mining industry's impact on the environment and local communities. Poorly managed mine closures can lead to the encroachment of artisanal miners on the sites and deteriorate the living conditions of local communities. In Niger, for example, civil society has been raising concerns since 2021 about the potential contamination of groundwater in the Agadez region following the closure of the Akouta uranium mine by French company Orano.

Rwanda's subsoil is rich with mineral resources valued at $150 billion, according to official figures. The country is already a producer of gold, coltan, and cassiterite and is now venturing into lithium exploration. In 2022, export revenues reached $772 million, showcasing the country's growing significance in the global mining industry.

Rwanda collected $1.1 billion in mining revenues last year, marking a 43% increase year-over-year. The good performance was announced by the Rwanda Mines, Petroleum and Gas Board (RMB) on February 15, attributing the growth to increased investments in mining mechanization and added value enhancements.

RWANDA'S MINERAL EXPORT EARNINGS FOR 2023 pic.twitter.com/rFDL2u3fud

— Rwanda Mines,Petroleum and Gas Board (@RwandaMinesB) February 15, 2024

Breaking down the figures, gold remained the leading export mineral, generating $817 million in revenue, accounting for 74% of the total, according to calculations by Agence Ecofin. Coltan brought in $94.3 million in export earnings, with the rest stemming from cassiterite, tungsten, and other minerals.

This remarkable performance in 2023 edges Rwanda closer to the government's ambitious target of generating $1.5 billion in mining revenues by 2024. RMB's data suggests the economic potential of the country's mineral reserves could reach $150 billion.

Let’s recall that in December, Rwanda took a step forward by signing an agreement with the European Investment Bank (EIB) to explore funding opportunities for developing critical mineral projects in the country. This move not only highlights Rwanda's strategic positioning in the mining sector but also underscores its commitment to leveraging its mineral wealth for economic growth and development.