Africa

Of all the economies in Africa that are waking up to the resources they are blessed with, Tanzania stands out for several reasons. Not least among these must be its stability. Though it has never been a rich country, since independence in 1962 it has hardly ever been in the news. Turbulent decades have attracted the wrong type of attention to every one of Tanzania’s neighbours: cross-border conflict, inter-ethnic tension and population displacement have too frequently characterised the post colonial era.

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.

The two blocks, the inland Block B and offshore Block 15, were offered to the company on a nomination basis following a meeting between India’s Oil and Natural Gas Minister, Veerappa Moily, and Sudan’s Petroleum Minister, Hatim Abuelgasin Mukhtar M Elamin, last week. Should the offer be accepted ONGC Videsh would have 100 percent right of investment in the blocks in Block B, which are reported to have established oil reserves, and Block 15, which is currently at the exploratory stage.

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.

Established as the Electricity Supply Commission in South Africa in 1923, it was in July 2002 that Eskom was converted into a public, limited liability company, wholly owned by government. Today Eskom is responsible for generating approximately 95 percent of all the electricity used in South Africa and approximately 45 percent of that used in Africa.

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.