Canadian miner First Quantum has been grappling with financial challenges since the abrupt closure of its flagship Cobre Panamá copper mine in late 2023. The company is actively exploring options to secure additional liquidity and maintain operations.

In Zambia, First Quantum Minerals has secured a copper prepayment agreement with its main shareholder, Jiangxi Copper, which will contribute $500 million. The funds will increase the Canadian company's liquidity as it faces the closure of the largest copper mine in its portfolio since late 2023. Panama abruptly ordered the closure of the Cobre Panama mine at the end of November, depriving the company of almost half of its annual production, and First Quantum's market capitalization fell sharply in the aftermath. Concerns also emerged about the company's ability to finance its continued operations, prompting rumors of the sale of one or more copper mines in Zambia.

The company denied these rumors and is examining other options to overcome the crisis. The agreement signed with Jiangxi is part of this process and will enable the Chinese group to obtain annual deliveries of 50,000 tons of copper anodes produced from the Kansanshi mine in Zambia at market prices. To raise further cash, First Quantum is also expected to dispose of minority stakes in its main assets, notably in Zambia, and sell off smaller assets.

"Constructive discussions with our lenders for an amendment and extension of our loan facilities, which are an important component to our fulsome solution, are well-advanced," said Tristan Pascall, the company's CEO.

First Quantum Minerals' current portfolio includes the Sentinel and Kansanshi copper mines in Zambia, which delivered 349,000 tons in 2023, out of total production of 708,000 tons. The company also operates the Pyhäsalmi (Finland), Cobre Las Cruces (Spain), Çayeli (Turkey), and Guelb Moghrein copper mines in Mauritania.

First Quantum, the leading copper producer in Zambia, aims to produce 370,000 to 420,000 tons of copper by 2024, including at least 350,000 tons from its two Zambian mines. 

Emiliano Tossou

Canadian gold miner Perseus Mining, having produced over 500,000 ounces in 2023 from its three operating mines in West Africa, is actively pursuing portfolio expansion. The company made a takeover bid for the owner of a gold project in Tanzania.

Canadian gold miner Perseus Mining announced a cooperation agreement with Saudi Arabia's Ajlan & Bros Mining & Metals Company (ABM) on February 21, targeting joint investments in North Africa and Saudi Arabia.

The partnership will explore co-investing in gold projects across Algeria, Eritrea, Ethiopia, Egypt, and Sudan, prioritizing those with pre-feasibility or feasibility studies already conducted. Early-stage projects may also be considered, though specific investment amounts remain undisclosed.

"To be gaining access to these areas in partnership with a Saudi-based company gives us a high level of confidence that we will be well equipped to manage the culturally different settings that we may encounter and to navigate the challenges that arise in these jurisdictions from time to time,"  commented Perseus CEO Jeff Quartermaine.

Based in Australia, Perseus currently operates three gold mines in West Africa: Sissingué and Yaouré in Côte d'Ivoire and Edikan in Ghana. It also holds a 70% stake in Sudan's Meyas Sand gold project and is pursuing a takeover of the Nyanzaga gold project in Tanzania through OreCorp acquisition. In 2023, Perseus produced 528,486 ounces of gold from its West African mines. 

Emiliano Tossou

Canadian miner Lucara Diamond, operating the Karowe mine in Botswana, Africa's top diamond producer, recovered 335,769 carats of rough diamonds in 2022.

Lucara Diamond's Karowe mine in Botswana, the world's leading diamond producer, produced 395,134 carats in 2023, an 18% year-on-year increase, the company said on February 20. This meets the lower end of its forecast range of 395,000 to 405,000 carats.

However, revenue generated from the mine fell 16.6% to $177.4 million compared to 2022. Lucara attributed this decline to a combination of factors, including lower global diamond prices and a shift in mined material compared to the prior year. In 2022, the company primarily extracted diamonds from a single zone, while 2023 saw a mix from three different zones.

For 2024, Lucara expects production and sales of 345,000 to 375,000 carats, with projected revenue of $220 million to $250 million. On February 18, the Canadian miner announced a new agreement to sell diamonds above 10.8 carats from Karowe through Belgian trader HB Company. 

In June 2023, Kinross Gold successfully completed the expansion of its Tasiast gold mine. This expansion, launched in in 2019, has allowed the Canadian mining company to surpass an annual production milestone of 600,000 ounces in 2023, making Tasiast not only the largest gold mine in Mauritania but also a key asset in Kinross Gold's portfolio.

On February 14, Kinross Gold unveiled its operational and financial results for FY 2023, which concluded on December 31. The company reported a record gold production of 620,793 ounces (about17.6 tons) at the Tasiast mine, marking a 15% yoy increase.

The Tasiast mine's achievement is largely attributed to the successful completion of the Tasiast 24k expansion project, which increased the mine's initial processing capacity by over 50%. Finalized in June 2023, the project led Tasiast to reach a historic quarterly production peak of 171,140 ounces by the end of September 2023.

The surge in production at Tasiast has the potential to significantly impact the mining sector's contribution to Mauritania's economy. In 2022, the mine's performance enabled gold to surpass iron ore as the country's top export product. According to data from the Extractive Industries Transparency Initiative (EITI), mining accounts for 70% of Mauritania's exports, 24% of its GDP, and nearly 30% of the state's revenue.

Looking ahead to 2024, Kinross aims to produce 610,000 ounces of gold at the Tasiast mine, which would represent 29% of the Canadian group's total expected production. Kinross also operates the Paracatu mine in Brazil, La Coipa in Chile, and the Fort Knox, Round Mountain, and Bald Mountain mines in the United States. Combined, these assets contributed to the company's overall production of 2.15 million ounces in 2023.

Burkina Faso, recognized as one of Africa's leading gold producers, hosts operations by several major international mining companies including Canada's Iamgold and Orezone, Australia's West African Resources, and West Africa's top gold producer, Endeavour Mining.

As of December 31, 2022, six industrial mines in Burkina Faso have not paid their contributions to the Mine Rehabilitation and Closure Fund (FRFM), according to a report presented to the Council of Ministers on February 14 by the Ministry of Energy, Mines, and Quarries. These contributions amount to CFA7.53 billion (about $12.26 million), we learned. The report did not disclose the names of the mines or the 49 industrial quarries that are also behind in their contributions.

The FRFM, funded by companies operating industrial mines as well as those managing semi-mechanized mines and quarry substances, had resources totaling CFA57.13 billion as of December 2022. These funds are allocated to the rehabilitation and closure activities of the country's mines.

In response to the challenges in collecting the resources, the Council has directed the relevant ministers to take specific actions, including the creation of FRFM accounts for industrial mines lacking them and the revision of legislative and regulatory texts governing the fund's operation.

It is noteworthy that the importance of an effective mine closure and rehabilitation process cannot be overstated, as it is crucial for mitigating the mining industry's impact on the environment and local communities. Poorly managed mine closures can lead to the encroachment of artisanal miners on the sites and deteriorate the living conditions of local communities. In Niger, for example, civil society has been raising concerns since 2021 about the potential contamination of groundwater in the Agadez region following the closure of the Akouta uranium mine by French company Orano.

Rwanda's subsoil is rich with mineral resources valued at $150 billion, according to official figures. The country is already a producer of gold, coltan, and cassiterite and is now venturing into lithium exploration. In 2022, export revenues reached $772 million, showcasing the country's growing significance in the global mining industry.

Rwanda collected $1.1 billion in mining revenues last year, marking a 43% increase year-over-year. The good performance was announced by the Rwanda Mines, Petroleum and Gas Board (RMB) on February 15, attributing the growth to increased investments in mining mechanization and added value enhancements.

RWANDA'S MINERAL EXPORT EARNINGS FOR 2023 pic.twitter.com/rFDL2u3fud

— Rwanda Mines,Petroleum and Gas Board (@RwandaMinesB) February 15, 2024

Breaking down the figures, gold remained the leading export mineral, generating $817 million in revenue, accounting for 74% of the total, according to calculations by Agence Ecofin. Coltan brought in $94.3 million in export earnings, with the rest stemming from cassiterite, tungsten, and other minerals.

This remarkable performance in 2023 edges Rwanda closer to the government's ambitious target of generating $1.5 billion in mining revenues by 2024. RMB's data suggests the economic potential of the country's mineral reserves could reach $150 billion.

Let’s recall that in December, Rwanda took a step forward by signing an agreement with the European Investment Bank (EIB) to explore funding opportunities for developing critical mineral projects in the country. This move not only highlights Rwanda's strategic positioning in the mining sector but also underscores its commitment to leveraging its mineral wealth for economic growth and development.

Allied Gold operates three gold mines in West Africa: Bonikro and Agbaou in Côte d'Ivoire, and Sadiola in Mali. In 2022, these three mines delivered 371,000 ounces or 10.52 tons of gold.

Canadian mining company Allied, with operations in Mali and Côte d'Ivoire, announced it has generated a total of 343,817 ounces (around 9.75 tons) of gold in 2023. In a February 21 press release, the company detailed that nearly half of this production, or 171,007 ounces (about 4.85 tons), came from the Sadiola Gold Mine in Mali.

The company operates three gold mines in West Africa, namely Bonikro and Agbaou in Côte d'Ivoire, and Sadiola in Mali. Together, these mines produced 371,000 ounces, or 10.52 tons, of gold in 2022. These figures mean that the 2023 output marks a 7% decrease from the previous year. In 2022, Sadiola delivered 175,000 ounces, while Bonikro and Agbaou in Côte d'Ivoire contributed 196,000 ounces combined. Last year, Bonikro produced 99,409 ounces, and Agbaou accounted for 73,401 ounces, totaling 172,810 ounces for the Ivorian mines.

Allied Gold did not specify the reasons behind the decline in production. However, the company anticipates a rebound in 2024, projecting a production range of 375,000 to 405,000 ounces of gold. Sadiola is expected to remain a key asset, with its output estimated between 195,000 and 205,000 ounces. Bonikro is forecasted to produce between 95,000 and 105,000 ounces, while Agbaou between 85,000 and 95,000 ounces.

To achieve these targets, Allied Gold plans to invest $62 million in its West African operations in 2024, with $47.5 million for the Sadiola Gold Mine alone. $24.5 million will also be allocated for exploration across the company's three assets in the sub-region, including $10.5 million for the Bonikro mine in Côte d'Ivoire.

The ECOWAS Mining and Oil Forum, which was first launched in 2012, held its inaugural event in Ghana in 2015, followed by editions in Côte d'Ivoire (2018) and Niger (2022). This high-level gathering promotes exchanges and the sharing of experiences at the sub-regional level.

The 4th edition of the ECOWAS Mining and Oil Forum opened in Cotonou, Benin, yesterday February 22. The opening ceremony gathered ministers, mining leaders, and notable figures, including Benin's Minister of Energy, Water, and Mines, Samou Seïdou Adambi, and the Vice-President of the ECOWAS Commission, Damtien Tchintchibidja.

Running until February 24, stakeholders from the mining and oil sectors across the sub-region will engage in discussions centered on the theme “Geo-extractive Resources and Technologies: What Pooling Strategies for Value Creation in West Africa”. According to the organizers, the event aims to stimulate investments through the presentation of attractive projects, highlight the specific potentials of West Africa, and facilitate the sharing of experiences among professionals and experts.

"By joining forces and pooling our resources, we can unlock the full potential of our natural wealth and transform our economies for the well-being of our people," said Abdoulaye Bio Tchané, Minister of State for Development and Coordination of Government Action, in his opening speech on behalf of Benin's President Patrice Talon.

He suggested that pooling efforts would lead to improved negotiation capacity for states, reduced operational costs through economies of scale, risk-sharing, promotion of regional development, and strengthened cooperation and integration.

In his remarks, the Benin Minister of Mines highlighted the importance of pooling resources to strengthen the value chain of resources both regionally and continentally. "In this field, we must identify and implement solutions that promote value creation, including the local processing of our natural resources, development of local content, and the creation of strong financial institutions," he added.

West Africa is home to several major mining and oil-producing countries, such as Nigeria, the leading African oil producer, Ghana and Mali, the first and third African gold producers respectively, and Niger, the second-largest African uranium producer. Hydrocarbons and mining play a central role in the GDP, export earnings, and public revenues of these countries.

Demand and prices for uranium have been on the rise for several months, amidst a resurgence of interest in nuclear power. Companies that had halted production or slowed uranium project development in recent years are now rushing to take advantage of this resurgence.

Australian mining company Lotus Resources announced on February 23 a stock placement aiming to raise 30 million Australian dollars ($19.7 million) for reviving its Kayelekera uranium mine in Malawi and developing its Letlhakane uranium project in Botswana.

Lotus will use the funds to conduct an engineering study to confirm the initial capital estimate needed to rehabilitate the Kayelekera project and secure new equipment. The study will also update operating costs and validate the restart timeline, currently set at 15 months.

The firm should also appoint a debt advisor to help with the revival. A 2022 feasibility study notes that $88 million is needed to restart production at Kayelekera. Lotus aims to resume production in Q4 2025 to take advantage of positive prospects for demand and prices for nuclear fuel.

The firm plans to carry out an exploratory study at the Letlhakane mine in Botswana. The study aims to identify a more efficient processing method than that of the 2015 feasibility study, to improve the economic characteristics of the project. An updated estimate of mineral resources is also expected to be released in the second quarter of 2024.

"Our main priority remains advancing the plans to restart Kayelekera to benefit from increased demand for Kayelekera products and current high and rising uranium prices, but we also recognize that progressing quickly at Letlhakane will enhance the company's assessment," commented Keith Bowes, CEO of Lotus.

As a reminder, the production target at Kayelekera is 2.4 million pounds per year over the first seven years of the mine, with an estimated total lifespan of 10 years. The Letlhakane project, which entered Lotus's portfolio in 2023 through the merger with A-Cap Energy, could deliver annually 3.75 million pounds of uranium over an 18-year lifespan.

Emiliano Tossou

Africa’s premier gold producer, Ghana, hosts major mining firms such as Perseus Mining and Newmont, the largest gold producers globally. Perseus, managing the Edikan gold mine in Ghana, may soon double its production by acquiring Akyem, one of Newmont's Ghanaian mines.

Newmont Corporation, the world's largest gold producer, is divesting one of its Ghanaian assets, the Akyem mine, alongside other gold operations in Australia, Canada, and the United States. Perseus Mining is contemplating the acquisition of the Ghanaian mine from the U.S.-based company, according to Jeff Quartermaine, CEO of Perseus Mining.

"We will certainly explore the opportunity," Quartermaine remarked during a conference call. As per Mining Weekly, which cited the executive, Perseus Mining possesses significant familiarity with the Akyem project, given its existing ownership of the Edikan mine in Ghana.

Through this deal, Perseus Mining could double its gold output.

According to Newmont’s projections, Akyem is anticipated to yield 170,000 ounces in 2024. In the previous year, the mine produced 295,000 ounces, compared to Edikan's 202,599 ounces.

Newmont's presence in Ghana will continue even if the sale of Akyem materializes. The American firm will retain its Ahafo mine, which yielded 581,000 ounces in 2023.

Meanwhile, Perseus maintains operations in Côte d’Ivoire, where it operates the Yaouré and Sissingué gold mines.

Emiliano Tossou