The Who, What, Where and Why of African Mining

1
The Who, What, Where and Why of African Mining

• Mashale Phumaphi

Loeb Aron Company Ltd.
2
Africa
3
China Meets Africa
(www.aliciapatterson.org)
4
China in Africa- Can It Be Win-Win?
-RESOURCE INVESTOR
5
China Booming!
6
Africas Troubled Past
(www.humanrightswatch.org)
7
Africas Troubled Past
8
Africas Troubled Past
(www.humanrightswatch.org)
9
Beijing Summit
10
China to launch 1bn Africa fund
- BBC
11
Is China good or bad for Africa?
12
Mining Journal Country Related Headlines

• US70/oz Zimbabwe gold as inflation hits 2,200
• Windfall mining tax possibility for South
  Africa
• China spends 900m in Zambia zone
• 60 DRC contracts under review

13
Mining Journal Country Related Headlines Cont..

• World Bank urges Zambia rethink
• South Africa ban to lift ferrochrome prices
• Zambia new mining taxes delayed to September
  minister - MINING WEEKLY

14
African states want to make sure that they are
getting their fair share of the commodities boom!
15
(No Transcript)
16
Income Derivation Mechanisms

• A Change of Fiscal Regime (Taxes and Royalties).
• Instating Mandatory state part ownership or full
  ownership of projects .
• Pursuing the local beneficiation of minerals
  prior to export.

17
Zimbabwe
18
US70/oz Zimbabwe gold as inflation hits 2,200
19
Moving Goal Posts

• 60 DRC contracts under review
• Zambia new mining taxes delayed to September
  minister

20
Beneficiation
(www.debeersgroup.com)
21
Summary

• Beneficiation seen as the way forward
• Good attitude towards foreign investment
• Nationalisation seems to be a thing of the past

22
Lessons Learnt

• Most government income generation mechanisms are
  fine.IN MODERATION!
• Governments should not move goal posts!
• Beneficiation is GreatHowever implementation
  must be thought through carefully!

23
THANK YOU!