Mining and Exploration

The London-based oil exploration group, which focuses on Africa, doubled its estimate of its discovery in Kenya's South Lokichar basin, currently around 600 million barrels, following two successful well results. During the coming two years the company says it plans further exploration, predicting that the region could yield more than a billion barrels.

The rare stone was discovered at its Cullinan mine, 40 kilometres north-east of Pretoria, and represents one of the most exceptional stones recovered at Cullinan during Petra's operation of the mine. Indeed it isn’t the first of its kind, what with the company having also unearthed a 25.5 carat blue diamond in 2013, which went on to sell for $16.9 million. Understandably the company’s latest discovery is also expected to sell for a substantial price.

Building upon a pedigree and wealth of skills that stretch back decades, Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups. Boasting interests in coal, mineral sands, ferrous and energy commodities, it is the country’s second largest coal producer with current production levels reaching 47 million tonnes per annum (mtpa).

It is no exaggeration to say that the future of African economic development, in the near to mid term at least, is inextricably linked with its mineral resources. It is these that will provide the capital that can be re-invested in building a sustainable business infrastructure whether in manufacturing, services or technology and innovation.

Rio Tinto is the first of the big diversified miners to report its annual production figures for 2013, which showed strong growth despite industry concerns of weakening Chinese demand for steel.

The Anglo-Australian mining giant produced 70.4 million tonnes of iron ore in the fourth quarter, a six percent increase on the same period in 2012. It comes at the same time that the company implements a series of cost cuts that has seen it reduce exploration costs alone by $1 billion.

In the present climate exploration companies are really struggling to secure investment to complete drilling programmes and progress to a defined resource they can either sell on or start to develop. But companies that have already moved into production and can point to reliable cash flow are in an enviable position.

Though its mining history may span close to 500 years and counting, Mexico remains a major mineral exploration ground and retains its position amongst the world’s largest metal producers. The country’s rich geology and favourable regulations has made it an epicentre for mining activity, not least it is mountainous northern region, home to the legendary Sierra Madre gold and silver belt. It is here, 220 kilometres west of Chihuahua, where one finds the Pinos Altos mine.

Gold output from its Sukari mine, its only producing asset, totalled 91,546 ounces in the December quarter, seven percent up from the same three months a year earlier and eight percent higher than production in the September quarter. This contributed to full-year production of 356,943 ounces from Sukari, which beat 2012’s total by 36 percent. The company’s 2013 guidance for Sukari had been at 320,000 ounces.

Howard Craig was brought in from the oil and gas industry over three years ago: his mission to breathe new life into one of South Africa’s key businesses. Rand Refinery, since 1967 the sole producer of Krugerrands and gold bars destined for the bullion banks of the world along with gold bars, is the pipeline to the market for the greater part of Africa’s gold doré – the semi pure product from the mines.