AFRICAN NEWS
ARM Cement has signed a deal to sell its business in Kenya to the
National Cement Company for USD50-million. The transaction is
subject to customary regulatory approvals, according to the Business
Standard newspaper. ARM Cement also has operations in Tanzania,
Rwanda and some interests, in the form of unexploited mineral
deposits, in South Africa.
“This transaction is in line with National Cement’s growth strategy
in Kenya to position itself as the leading cement manufacturer in
the region. The industry is poised for growth and we are excited
about the prospects for this next chapter of our business. We will
endeavour to safeguard the interests of all stakeholders including the
employees, customers, and suppliers in the overall interest of Kenya,”
says Narendra Raval, chairman of National Cement.
The cement producer was placed under administration in August
2018. In late 2018 Oman’s Raysut Cement said it planned to buy
ARM Cement as part of its expansion plans. Nigeria’s Dangote
Cement was also linked to a potential purchase of the company.
ARM Cement sells assets for USD50m
ARM Cement’s business in Kenya is being sold to the National Cement
Company.
Zambia's mines minister orders regular audits at all mines
The government's action on
KCM adds to concerns among
the mining community about
rising resource nationalism
in Africa. Mining Minister
Richard Musukwa says the
action at KCM “should
not be misconstrued as
nationalisation” and followed
KCM’s failure to “comply with
licence conditions”.
“The government will be
undertaking regular audits
at all the mines to ensure
compliance and avoid the
recurrence of the situation at
KCM,” he says. Zambia has
already riled miners with tax
changes that mining companies
say will deter the investment
Zambia desperately needs after
repeated warnings from the
International Monetary Fund
about its debts and shrinking
foreign currency reserves. In
addition, the country is facing
rolling power cuts as water
levels in hydroelectric dams
have been depleted by drought.
A source at the Zambian
power company ZESCO told
Reuters it would hold talks
with long-term power contract
holders, which include miners,
on how their needs could be
met. Industry sources say so
far the country’s big miners,
which include Glencore and
First Quantum, as well as
KCM, have not experienced
power disruptions. Zambia's
Chamber of Mines said
in May that the country,
Africa's second largest copper
producer, was at risk of a
drastic fall in copper output
because of the impact of the
tax changes.
Zambia will carry out regular
audits at all mines to avoid
any repeat of the situation
at Vedanta unit Konkola
Copper Mines (KCM), which
has breached the terms of its
licence, the mining ministry has
announced. Zambian President
Edgar Lungu said in May that
the government planned to
strip KCM of its mining licence
and bring in a new investor.
His spokesman says the move
followed a number of breaches
of the terms of the licence,
without giving details.
Investors spooked by government action against KCM.
6_QUARRY SA| JULY/AUGUST 2019
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