The collapse in world oil prices in the second half of 2014 will have only a moderate impact on the fast-developing low-carbon transition in the world electricity system, according to research firm Bloomberg New Energy Finance. The past five years have seen an average of $266bn per annum invested in clean energy worldwide. The majority of this has gone into renewable electricity generating capacity, which does not compete directly with oil. Wind and solar have been exhibiting very rapid growth, even as subsidies and support have in general become less generous, and that has been driven mainly by dramatic…
Author: Editor
Mining remains the largest contributor to Botswana economy, according to latest data published by Statistics Botswana. The publication on 2014 third quarter Gross Domestic Product (GDP) figures showed exploitation of natural resources comes ahead of energy, hotels, trade etc. “Mining continues to be the largest contributor to GDP. Its contribution to GDP stands at 21.5 percent in the third quarter of 2014 followed by Trade, Hotels & Restaurants and General Government at 15.6 and 14.9 percent respectively,” said Statistics Botswana. According to the statistics body, the estimated GDP at current prices for the third quarter of 2014 was P34…
African Copper plc, the owners of Mowana copper mine in Botswana says it has narrowed its losses in the half year results for the period ending 30 September 2014. The company said revenues were $30.8 million, an increase of 3.7% from $29.7 million for the corresponding period last year. However it revealed that overall loss for the period was $8.8 million compared with a loss of $29.1 million for the corresponding period last year. This includes a $25 million impairment loss recognized last period on property, plant and equipment. Operating income from mining operations was $4.0 million, a decrease of…
Barrick Gold Corporation said it will initiate procedures to suspend operations at the Lumwana copper mine in Zambia following the passage of legislation that raises the royalty rate on the country’s open pit mining operations from six percent to 20 percent. The new taxation regime, which is expected to go into effect on January 1, 2015, eliminates corporate income tax, but imposes a 20 percent gross royalty on revenue without any consideration of profitability. “The introduction of this royalty has left us with no choice but to initiate the process of suspending operations at Lumwana. Despite the progress we have…
The Lake Turkana Wind Power will build a 310 Megawatt (MW) wind farm in north-eastern Kenya with the help of Standard Bank and 11 other financiers, including Nedbank, the African Development Bank and the European Investment Bank. Standard Bank, Nedbank and the AFdB are the Mandated Lead Arrangers for the Project. Standard Bank and Nedbank both provided the commercial bank guarantees for the EIB Commercial Bank Guarantee Facility. The two commercial banks will also be providing the interest rate hedge for the project, which reached financial close on 11 December 2014. The wind farm will comprise 365 Vestas Wind Systems…
Discovery Metals said it will place Boseto mine, on “Care and Maintenance” within the next six months as a result of unfavourable market conditions. The troubled Australian company stated the move follows a comprehensive review of its open-pit copper mining and processing operations at its flagship Botswana based project. The review has been undertaken having regard to the current and continuing soft market outlook for copper on world commodity markets and the prevailing high stripping ratio / restricted geometric nature of the Boseto open pits. Copper prices have deteriorated by approximately $US 1,000 per tonne during calendar year 2014 to…
The month of December saw the BIHL Trust once again champion the Boxes of Love campaign. Staff of BIHL Group and Legal Guard banded together to bring smiles to the faces of children across Botswana. Over 250 “Boxes of Love” were shared with 250 children at Childline Botswana, Botswana Association for Psychosocial Rehabilitation (BAPR) on 5th December 2014. The Boxes of Love campaign saw each staff member paired with a child from the various charitable organisations. Each business handpicked the children’s organisation they wanted to work with, engaging these organisations to get a sense of the personalities and interests of…
The UN climate talks crept into the early hours of Sunday morning this past weekend – more than 30 hours after the scheduled close – as Peruvian Environment Minister Pulgar Vidal begged governments to “give hope to the world”. There was a degree of optimism heading into the Lima negotiations, with the world’s largest emitters – China, US, and Europe – communicating their emission reduction targets, and countries pledging a combined total of US$10 billion to the Green Climate Fund. Disappointingly, governments missed the opportunity to build on this momentum to lay a robust foundation for a global post-2020 agreement on climate…
Gulf Co-operation Council (GCC) countries are placing more attention on new markets in east, west and southern Africa as their trade flows with the continent expand, according to a report released by the Economist Intelligence Unit (EIU) in conjunction with Falcon and Associates. The EIU study, entitled GCC Trade and Investment Flows, explores the GCC’s economic ties with each world region and identifies major growth drivers. Key findings show the GCC’s push into Africa is broadening by sector and geographical location. From telecommunications and private equity in West Africa to energy projects in South Africa and Mozambique, investment flows…
African Energy Resources Limited and First Quantum Minerals Limited (FQM) have executed a binding Shareholders Agreement for the Sese Joint Venture Project on terms previously announced following satisfactory completion of due diligence. According to the deal, FQM will purchase an initial 51% stake in African Energy Holdings SRL (AFRH) for $8m. The funds will be used to repay all outstanding loans between AFRH and AFR, thus providing additional working capital for AFR. However, the transaction is subject to certain conditions precedent which includes ministerial consent to the transfer of beneficial ownership of the tenements, and minor issues related to AFR/AFRH…