Wednesday, February 21

Extractive and Energy

Mining of precious metals
  • South Africa has adopted a number of measures aimed at boosting the country’s critical mineral industry.
  • In January 2023, mining production experienced its twelfth consecutive month-to-month decline, recording a decrease of 1.9 per cent.
  • According to the Minister of Mineral Resources and Energy Gwede Mantashe, the industry needs to advance a commitment to working together as stakeholders on the reconstruction and recovery of the mining industry. 

    South Africa’s vast reserves of critical minerals present a huge opportunity for the country to accelerate economic growth and boost employment creation, while ensuring the energy transition is just and inclusive.

    Statistics South Africa recently released its key findings for the fourth quarter of 2022, wherein the real Gross Domestic Product (GDP) decreased by 1.3 per cent. According to the report, the mining and quarrying industry decreased by 3.2 per cent and thus contributed -0.1 per cent to the GDP growth.

    Key to

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Rare earths production in Africa set to takeover China's dominance

The rapid snowballing of Africa’s rare earths metal production is set to become the world’s alternative source in 2023 and beyond, as global demand surges and world powers seek to wean off their dependence on China amid a new geopolitical multipolar world order. Africa’s vast reserves of rare earth metals have come under the radar of world powers fueled by the devastation emanating from the climate change crisis and calls for a drastic reduction in the growth and operations of extractive industries.

Furthermore, the race to net-zero emissions compounded by increased climate-induced natural disasters has intensified the green energy transition, instigating another scramble for Africa’s resources rare earth metals are at the heart of the race to green energy as well as providing opportunities for massive economic growth by injecting much-needed revenues to finance core socio-economic objectives in the continent.

Rare earth elements (REEs) refers to a group of 17…

The Nigeria Morocco Gas Pipeline.Source MWN

Africa has been hailed as the next frontier in the provision of global oil and natural gas resources, especially now in the wake of the ongoing Russia-Ukraine war.

This crisis has not only altered the global energy landscape, but also instigated an inflation in gas prices, given the former’s position in the hierarchy of major global producers. As sanctions continue to soar, Europe has embarked on a quest to find contingency energy supplies, as it seeks to minimize its dependency on Russia; which has already cut off gas supplies to countries like Finland, Poland and Bulgaria, over energy payment disputes.

Consequently, Africa’s gas resources have gained a newly found prominence, pertinently by the European Union (EU); owing to the continent’s rich endowment of oil and deep gas reserves. The mounting global demand for gas, has been pushing international energy companies to reconsider African projects. The numerous ongoing and upcoming oil …

The civil society meeting on revenue in Senegal. www.theexchange.africa

Senegal is looking towards learning from the mistakes of other African countries in an attempt to reverse the so-called “resource curse” that plagues many oil and gas producing African countries. In a further demonstration of enlisting public opinion, such a broad meeting was called to brain-storm for ideas and incorporate into a national development programme.
“It is extremely import to remind you all today, we remain convinced that the promotion of a participatory, multi-institutional, and collaborative approach is imperative for capable governance and guaranteeing sustainable prosperity,” stated President Macky Sall of the Republic of Senegal.
Under this new legislation, the citizens of Senegal will have a seat at the table, with civil society to play a leading role in driving the discussion surrounding the monetization of the country’s oil and gas industry. This landmark act will ensure a trickle-down economy that guarantees investments within petrochemicals, agriculture, power, gas, and transportation, …

open-pit-mining-1327116_1280

Anglo American, the mining behemoth took the decision on May 7th, 2021 to divest from its South African thermal coal and demerge its assets in this space into a separately listed entity that it chose to name Thungela Resources. The name “Thungela” comes from the Zulu word meaning to “ignite” or to “set alight” or to “set on fire”. This new mining outfit was formally demerged and listed on the Johannesburg and London Stock Exchanges on June 7th, 2021 and it presented its first set of interim financial results as a standalone entity in July. Its results exceeded expectations from the market which was quick to subscribe to its shares and doubled its share price over the course of the month. The company’s name seems very instructive given this background. It has literally set light to its shares by delivering a very impeccable set of numbers

The flooding crisis in Africa (1)

Has Africa stumbled upon an environmental apocalypse? The numerous natural disasters that have descended upon the continent hitherto—from the plague of desert locusts that have ambushed the Horn of Africa, tropical storms, floods across Eastern and Central Africa, severe droughts and heat waves to massive cyclones whose devastating effects are still felt across Southern Africa. The aftermath is a trail of death and destruction, threatening to erode hard-won development that most African countries have struggled to achieve, inflicting cascading economic consequences. Loss of lives, displacement of people, sources of income compromised, destruction of infrastructure and numerous development projects have been the ill-fated victims across the continent and have succumbed, in the wake of these natural disasters, to such events that have all stemmed from climate change.  …

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open-pit-mining-1327116_1280

The African continent has been endowed with about 30 per cent of the world’s total mineral reserves with over 60 different types of minerals. If more geological surveys are conducted systematically there is potential to discover even more extensive tracts of mineral deposits.  

Minerals are vital inputs in the production of a broad range of consumer goods, infrastructure and agricultural materials and they are also used in making transport, communication and energy applications. Minerals are a necessity in the industrialisation of many nations across the globe.…

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With a favorable geographical position on the westernmost point of Africa, an abundance of natural resources, and strong political leadership and stability, Senegal is set to transform its economy through the development of its energy sector. The country is endowed with vast natural resources, including significant natural gas reserves and renewable energy sources, and has committed to the diversification of its energy mix to meet rising energy and electricity demand.  With a clear presidential vision in which the energy sector is seen as a key driver of economic growth, H.E. President Macky Sall is pursuing increased investment in Senegal’s growing energy industry. Through the promotion of an attractive business environment, the implementation of industry supportive regulation, and an integrated sectoral approach, H.E. President Sall is transforming the country into an energy hub.

Also Read: 8th Angel Fair Africa to be held in Senegal

Senegal boasts immense oil and gas discoveries …

power grid electricity

In the South African Department of Mineral Resources and Energy 2020 Annual Performance Plan report, the authority highlighted the importance of the energy sector in catalyzing economic growth and development.

As in the report, real-life reflects the need for a reliable supply of energy to ensure that Africa continues to push its presence onto the global stage and build foundations of economic and social prosperity.

To achieve this change, and to transform the continent’s legacy challenges into a future that allows for continued growth and development, it remains a priority for the government and private sector to invest in energy solutions that are sustainable, reliable, and relevant.

As the continent moves into the first half of 2021, it’s the right time to look ahead at what the year ahead looks like for the energy sector and what changes or opportunities could potentially shift energy solutions into high gear.

The Renewable

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