According to Mr Rajat Kohli, the global head of mining and metals at Standard Bank, development in mining of metals and bulk commodities including copper, coal and iron ore will continue to drive investment in Africa as a result of strong demand from emerging markets including China and Brazil.
Mr Kohli told members of the media during a lunch hosted by Standard Bank, that countries African countries including Sierra Leone in West Africa, where a new iron ore mining was expected to improve fortunes and investment in Mozambique coal would successfully drive the economy region.
He said that “It is exciting to see that projects are coming to fruition in Africa.” Mr Kohli expected continued mergers and acquisitions by small and medium sized mining companies would continue. Other exciting opportunities in Africa were in nickel rich Burundi and platinum wealthy Zimbabwe which had the second biggest reserve of the precious metal after South Africa.
Last year, the Chinese based Jinchuan Group announced plans to acquire South African Metorex for ZAR 9.1 billion. While Brazilian based Vale approved a USD 6 billion expansion of its Moatize coal project in Mozambique.
Better partnerships between government and the mining companies were needed. In Zimbabwe, government has introduced an indeginisation policy which requires foreign owned companies to cede 51 percent takes to locals to improve the economy.
Mr Peter von Klemper director for Mining and Metals at Standard Bank said that “Zimbabwe is a fairly unique situation by African standards. A lot of companies are showing interest but everyone has adopted a wait and see attitude, and it is the right attitude given uncertainty in that country.”
Furthermore, uncertainty as a result of calls for resource nationalism, the euro zone debt crisis and infrastructure shortage will continue to be key trends in the mining sector for the next year, said Kohli. There had been consequences for the call for nationalization of mines in South Africa by ANCYL president Julius Malema.
(Sourced from www.iol.co.za)
