Energy And Mining Companies

Africa: The Future Industrial Playground And Investment Destination For Junior Energy And Mining Companies

A young and affordable labour force, massive untapped energy reserves, over 40% of global battery metal reserves, and 40% of the world’s gold resources are just four reasons Africa is the ideal destination for junior energy and metal mining companies. Local or international senior players already dominate most mature energy and metal-rich regions.

Top oil production companies in Saudi Arabia, the US, Russia and Australia’s largest iron mining companies are local/state-owned. However, the pattern is different in underdeveloped regions.

The State of Energy and Mining Industry in Africa

Despite being an incredibly resource-rich region, Africa’s energy and mining sectors are underdeveloped, though some countries are ahead on the industrialization curve more than others.

Lack of infrastructure, industrialization, skilled labour, financial resources, and political stability have been the classical reasons behind the locally-controlled energy and mining sector. Add security to the equation, and it’s easy to see why major energy and mining companies have yet to leverage African resources fully. However, it has expedited now (in the pursuit of battery metal). Still, foreign companies dominate the African energy and mining industries.

● Except for one or two state-owned companies, most African oil and gas leaders are foreign.
●The ten largest gold mines in Africa are partially or wholly owned by foreign companies, predominantly Canada, US, and UK.
●International players like Glencore control most of the Democratic Republic of Congo’s cobalt mines. The Democratic Republic of Congo (DRC) is responsible for about 70% of the world’s cobalt supply.

In conclusion, international giants control most of Africa’s discovered and developed energy and metal resources. However, most African resources are still untapped, presenting many opportunities to junior energy and mining companies (that tend to be more flexible and agile) around the globe.

Energy And Mining Companies
Open-Pit Mine

Why Is Africa The Next Industrial Playground And Investment Destination For Junior Energy And Mining Companies?

●Geographic and asset diversity can be a boon for junior energy and mining companies in Africa. With so many choices, they can start their asset portfolio with resources that promise the best ROI. The geographical diversity of energy and metal resources can help these companies choose the best cultural, linguistic, or logistical fit.
●Unlike significant energy and mining firms whose reputation (good or bad) precedes them and prevents them from achieving healthy local/community integration, junior companies can follow a community-first approach to put down roots in the country/region they are operating in. This forestalls security and legal issues, which may threaten the company’s long-term profitability.
●By choosing the correct African country to operate in, an energy or mining company can significantly reduce its tax liability (via low rates or tax breaks).
●Environmentally conscious energy practices, good profit-sharing deals with the local governments, and infrastructure development may help junior producers access adversarial markets against senior producers.
●Africa accounts for more than 40% of the world’s battery metal reserves, especially cobalt (the main constituent of Li-ion batteries), making it a crucial link in the EV supply chain. Junior mining companies capable of low-cost production of battery metals might see exceptional ROIs.

With the right plan and strategy, junior energy and mining companies can start operating in Africa at a fraction of the cost of running the same operations in mature and highly-regulated markets. Proximity to significant consumers like China and India and low-cost labour may also contribute to high ROIs.

Green Technology

Green Technology: How Green is Your Metals and Mining Asset Management Portfolio?

The mining industry is anticipated to be among the main winners as the world embraces sustainable energy. Large amounts of metal are needed to produce, transmit, and store electricity gained through solar and wind energy.

A significant portion of the raw minerals used in the green energy trend, like cobalt and lithium, are currently supplied mainly through mining. These metals need to be mined on a much larger scale than they already are if climate commitments are to be maintained.

Metals and mining companies will face significant difficulties as a result of the energy shift, forcing them to rethink their growth strategy and innovate. This is where strategic sourcing is required. Here are some ways to improve the sustainability of your asset management portfolio.

Green Technology: An Introduction 

Technology that reduces or undoes the consequences of the actions of humans on the environment is referred to as “green technology.” Green technology in mining relates to equipment that will lessen carbon emissions from operations and reduce adverse environmental effects. It entails the utilization of mineral and metal resources that facilitate the switch to low-carbon alternatives like solar or wind energy.

Green Technology

How Green Are the Metals and Mining Assessment Management Portfolios? 

Non-renewable raw materials for green technology must be procured from primary or secondary natural sources. The goal is to create a completely circular economy where demand can be supplied through recycling and reusing. 

The most significant contributor to global greenhouse gas emissions is the energy industry. As per data gathered by Oxford University’s Our World in Data, the energy industry is responsible for over 73% of the worldwide emissions of greenhouse gases. The energy sector’s three primary consumers are industry, transportation, and residential warming and lighting.

We must modify how we create, transport, and use energy to decrease greenhouse gas emissions. Nuclear power, solar energy, and wind farms must replace thermal power plants. To store electricity, thousands of industrial cells must be constructed. Electric alternatives should be used in place of boilers and gas warmers. 

This new paradigm will necessitate tremendous quantities of material. This is so that renewable energy may generate the same amount of energy as fossil fuels without requiring as much metal. While implementing cutting-edge technologies, the mining industry should carefully evaluate emerging trends in cooperation and traceability. 

Mining firms are being scrutinized closely. Customers are putting increased pressure on businesses to be sustainable along the entire supply chain, from when a resource or metal is discovered until it is used in the goods they buy. 

Investors are adding green projects to their metals and mining asset portfolios. They are looking for companies that have a solid commitment to sustainable practices. This includes firms prioritizing reducing carbon footprint, conserving water resources, and minimizing waste. Companies prioritizing sustainable practices will likely have a lower environmental impact than those not.

Mining companies must also consider recycling and reusing minerals as it can reduce the demand for new mining and help minimize the environmental impact of mining operations. Firms focusing on recycling and reusing minerals will likely be more sustainable. 

Final Thoughts 

Green growth policies are essential for reducing the damaging effects of the mining sector on ecosystems and scenery, such as pollution, hazardous waste, and carbon emissions. They are also crucial to lowering the ecological footprint of these components throughout their existence, from extraction to finished use, supporting the viable expansion of the sector and creating new employment opportunities. Investors will add more green projects to their mining asset management portfolios, and mining companies must adopt sustainability principles to garner more investment.

Technology metals market

Technology Metals Market and Procurement Strategies in AEMEA

The demand for technology metals has increased exponentially in recent years due to their extensive use in various high-tech applications. Still, the supply of technology metals is limited, and their procurement can be challenging. Here, we will explore the current state of the technology metals market in AEMEA and discuss procurement strategies that can help businesses stay competitive in this dynamic market.

Technology Metals Market in AEMEA

The market for technology metals in Asia, Europe, the Middle East, and Africa (AEMEA) region has been growing steadily over the past few years, driven by several factors, such as the increasing demand for electric vehicles, renewable energy systems, and consumer electronics.

For instance, the demand for lithium-ion batteries, which require large amounts of cobalt, nickel, and lithium, is expected to increase as electric vehicles become more prevalent in the automotive market. Additionally, the demand for rare earth elements, such as neodymium and dysprosium, is growing due to their use in manufacturing wind turbines and other renewable energy systems.

China has been a dominant player in the technology metals market, producing most of the world’s rare earth elements and lithium. However, other countries in AEMEA are starting to ramp up production to meet the growing demand.
Despite the increasing demand for technology metals, the supply chain for these metals is highly complex and often opaque, with several challenges, such as geopolitical risks, price volatility, and environmental concerns.

One of the challenges facing the technology metals market in AEMEA is the supply chain. These metals are often produced in countries with unstable political situations or weak regulatory environments, making it challenging to ensure responsible sourcing practices.

Technology metals market

Procurement Strategies for Technology Metals in AEMEA

To stay competitive, businesses in the technology metals market in AEMEA must adopt procurement strategies to help them manage supply chain risks, reduce costs, and ensure sustainability. Some of the procurement strategies that businesses can adopt include:

  1. Diversify the Supply Chain
    One of the most effective procurement strategies for technology metals is diversifying the supply chain. Businesses should look for multiple suppliers and sources of technology metals. This can help businesses to mitigate the risks associated with supply chain disruptions, price fluctuations, and geopolitical tensions.
  2. Build Strong Relationships with Suppliers
    Building solid relationships with suppliers is crucial for ensuring a reliable supply of technology metals. By building solid relationships with suppliers, businesses can gain access to valuable information about market trends, supply chain risks, and pricing fluctuations. Additionally, strong relationships can lead to better pricing, favourable terms, and priority in allocating supplies.
  3. Conduct Regular Supplier Audits
    Conducting regular supplier audits is another effective procurement strategy for technology metals. By auditing suppliers, businesses can ensure they meet the necessary quality, environmental, and ethical standards. Additionally, audits can help companies to identify potential risks in the supply chain and take proactive measures to mitigate those risks.
  4. Monitor Market Trends and Price Fluctuations
    Monitoring market trends and price fluctuations is crucial for effectively procuring technology metals. Businesses should closely monitor the market trends, supply chain risks, and price fluctuations of technology metals. By staying current on market trends, companies can make informed procurement, pricing, and inventory management decisions.

Conclusion

The technology metals market in AEMEA is rapidly growing. In this dynamic market, businesses need to adopt procurement strategies to help them manage supply chain risks, reduce costs, and ensure sustainability to stay competitive. By following the procurement strategies mentioned above, businesses can ensure they have a reliable supply of technology metals and stay ahead of the competition.

Contact us to learn more about procurement strategies that allow your business to maintain steady supplies of technology metals and stay ahead of the competition.

China

Copper price sliding into 2023 amid rising Covid-19 in China

Copper prices slipped into 2023 as a result of rising coronavirus cases in China, fears of an impending global recession led by the Russian military operation in Ukraine, high energy prices, and rising inflation, weakening demand and pressuring the world’s top consumer of industrial metals to tighten control measures that will disrupt supply and demand and impact the global economy.

“With Chinese stimulus starting to falter and COVID-19 resurgences triggering the possibility of more disruption, particularly across Asia,” analysts Eric Nguyen and Pranay Pathak said. “This volatility will only be exacerbated given the large amount of money flowing into commodity ETFs,” which has added around 1 billion pounds ($1.36 billion) a week during the past two months.

Analysts have said that the recent spate of positive case releases and signs that the economy is stabilizing have led to a “somewhat optimistic” outlook for copper. However, they warned that recent reports suggesting increased restrictions on logistics and travel within China could lead to further disruptions in supply chains. Following a two-year shutdown, the country is set to reopen on January 8, removing the required inbound quarantine for foreign travelers ahead of the upcoming Lunar New Year holiday.

Despite the year-end focus on First Quantum Minerals and the Panamanian government’s tax dispute, as well as a ransomware attack on Vancouver-based Copper Mountain Mining Corp after it announced the sale of its Australian exploration project, demand for energy transition commodities remains stable.

The market’s focus on near-term economic forecasts indicates a possible rebound in the midterm of 2023. The long-term outlook for copper remains strong as the world continues to shift towards greener and more sustainable energy sources.

Gorilla Rwanda

Intiomale and Company Group’s statement concerning the Rwanda aggression in the Democratic Republic of Congo

Intiomale and Company Group condemns Rwanda’s military aggression against the Democratic Republic of Congo, which has tragic consequences for the peace effort in the Great Lakes region, the population, threatens the East African Community and other regional communities’ economic growth, as well as the wildlife and environment when mountain gorillas are annihilated due to conflicts.

Intiomale and Company Group expresses its solidarity with the Democratic Republic of Congo people who are consistently suffering the consequences of this pandemic unrest in the region for several decades and with the Rwandan people who will also suffer the consequences of stigmatization and loss of business and opportunities and do not approve of its government actions.

Intiomale and Company Group and its partners are mobilized to provide resources and technical capacities in defence offset to the Congolese authorities in case of persisting aggression.

Intiomale and Company Group and its partners support sanctions put in place by the Democratic Republic of Congo and its partners and will implement them regardless of the consequences, currently being assessed, on its direct or indirect activities in Rwanda.

Intiomale and Company Group and its partners will no longer provide capital for new or existing projects in Rwanda, that includes the Bukeri and Kiruruma 5.

4MW mini-grid project pre-approved for US$17.5 million, and disinvest from the country until further notice.

About Intiomale and Company Group

Intiomale and Company Group is a global commodity trading, investment, and advisory company that provides solutions to a variety of companies’ strategic and operational needs in Asia, the Middle East and Africa from the public and private sectors. Our 220 cross-border partners are committed to providing affordable and sustainable expertise supporting clients’ performance objectives. With several companies and operations active in more than 10 countries, Intiomale and Company Group puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of the populace.

Intiomale and Company Group Contacts

Media Relations: +971 (0)87 551 0556 l press@intiomalegroup.com
Investor Relations: +971 (0)58 521 4144 l invest@intiomalegroup.com

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Cautionary Note

The terms “Intiomale and Company Group”, “Intiomale and Company”, “Intiomale” or “Company” in this document are used to designate Intiomale and Company (Pty) Ltd and the consolidated entities that are directly or indirectly controlled by Intiomale and Company (Pty) Ltd . Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or their employees. The entities in which Intiomale and Company (Pty) Ltd directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on several economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to several risk factors. Neither Intiomale and Company (Pty) Ltd nor any of its subsidiaries assume any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document, whether as a result of new information, future events or otherwise.

Contact

Intiomale and Company Group
Yahya Mohammed Al Janun
+27875510556

Published on (PR.com)
https://www.pr.com/press-release/862469

Covid-19 MedTech

IMPACT OF COVID-19 on the MedTech Supply Chain

Imagine the challenges MedTech manufacturers face in the middle of a pandemic and a global supply chain race to acquire decreasing medical supplies. How concerned are you about the novel coronavirus global outbreak? How prepared are you to face the pandemic while maintaining your business and global expansion goals and objectives? Did it impact your business, your country’s economy, and your investments?

Brexit

Deal or No Deal: Brexit UK SMEs Saving Grace

The journey ends here. It’s certainly a no-brainer that Brexit will have a crippling impact on the global economy but mostly on several UK, EU, US, and Australian businesses, let alone SMEs trying to find a fit in the market, who are undoubtedly the most affected. What does it mean for your business? Is your portfolio recession-proof enough in case the post-Brexit hits a volatile chapter in 2020? Yes/No, then, what’s next?