The “concerning” economic growth dynamics across the South African mining sector should reinforce the need for the seventh administration, whatever shape it may take, to sustain and preferably fast-track the structural reforms started by the sixth administration, the Minerals Council South Africa said on June 5. As was telegraphed by the high-frequency monthly production data in the first three months of this year, Statistics South Africa reported on June 4 that mining sector GDP measured in real terms contracted in the first quarter.
Mining input costs up by 7.2% y/y, Minerals Council says
The Minerals Council South Africa said on June 4 that its index of mining input costs increased by 7.2% year-on-year, matching the highest rate so far this year, which was recorded in January. This rise in input costs coincided with an acceleration in the rate of increase for the producer price index (PPI), which rose by 5.1% year-on-year in April, up from 4.6% in March.
ICMM suggests tax reforms to drive greater investment to meet metals, minerals demand
Mining organisation ICMM says its members paid corporate income tax (CIT) and royalties of $54.2-billion last year, employed 561 800 people and paid $39-billion in wages.
About $187-billion was paid to suppliers, while community and social investments totalled $1.4-billion.
Traders are desperate for copper deals and miners are cashing in
A heated competition for copper among some of the biggest commodity traders is creating opportunities for miners to negotiate favorable terms ranging from huge upfront payments to extra-long contracts.
Recent moves by cash-flush energy traders including Mercuria Energy Group to expand in metals — a market long dominated by Glencore and Trafigura Group — are raising tensions and sparking a scramble for contracts, at a time when the industry is already facing an unprecedented supply squeeze in copper ore.
Diamcor closes first tranche of increased placement
TSX-V-listed Diamcor Mining has closed a $1.4-million first tranche of a nonbrokered private placement following receipt of conditional acceptance of the offering from the TSX-V. The company now anticipates the offering will be oversubscribed and has increased the total amount of the original offering from $1.5-million to an aggregate of up to $2.5-million, with a second and final tranche closing expected to occur on or before June 15.
Many Peaks raises A$5.2m to fund gold exploration in Côte d’Ivoire
ASX-listed Many Peaks Minerals has completed a A$5.2-million equity raise within a 24-hour period from a small number of high-net-worth and institutional investors to accelerate exploration over an extensive area of gold-anomalous geochemistry with early but “very encouraging” drilling results at the Odienne and Ferke gold projects, in northwest Côte d’Ivoire. The company said on June 5 that it had received firm commitments for a two-tranche placement of about 23.6-million new fully paid ordinary shares at a price of A$0.22 a share. The placement price was set at the company’s last closing price of A$0.22 a share and represented a 1% discount to the company’s 15-day volume-weighted average price through the close of trading on June 3.
Gold purchases by central banks were strong in April despite high prices, WGC says
Net purchases of gold by global central banks rose to 33 metric tons in April from a revised net buying of 3 tons in March, the World Gold Council (WGC) said, signalling continuing strong appetite from the sector despite high prices for the metal. Safe-haven demand, driven by geopolitical and economic uncertainty, as well as persistent central bank buying contributed to a rally in gold in March-May. The spot price hit a record high of $2 449.89/oz on May 20.
South Korea, African countries sign agreements on minerals, exports
Nearly 50 deals and agreements have been signed during South Korea’s first summit with leaders from 48 African countries to cooperate in areas such as mining, energy and manufacturing, South Korea’s industry ministry said on Wednesday. Hyosung Corp, a South Korean conglomerate, signed a contract to supply electric transformers to Mozambique worth $30-million, the ministry said in a statement.
First call applications for R400m junior mining exploration fund close July 12
The first call applications for the R400-million junior mining exploration fund (JMEF) close on July 12. This was stated on Tuesday in a media release issued by the Department of Mineral Resources and Energy (DMRE), in partnership with the Council for Geoscience (CGS) and the Industrial Development Corporation (IDC).
Employees hold unprotected sit-in at Sibanye’s Kroondal mine
Multinational mining and metals processing group Sibanye-Stillwater reported on June 4 that more than 200 employees remained underground in an illegal sit-in at its Kroondal mine. The group said the sit-in started on the morning of June 3, with morning shift employees, including contractors, at the Kwezi shaft.