Company News in Brief

Exxaro is on the hunt for manganese minesExxaro Resources, one of South Africa's biggest coal producers, wants to become a major player in the country's manganese mining industry.After losing out on a copper mine in Botswana last year, Chief Executive Officer Nombasa Tsengwa is prioritising manganese in the company's latest bid to diversify its business. South Africa is the world's largest exporter of mid- to high-grade manganese ores, which are mainly used in steelmaking.While Exxaro doesn't currently own manganese mines, it's told other players that it's interested in acquiring projects, according to the CEO. South32, Anglo American and African Rainbow Minerals are among the shareholders in manganese mining joint ventures, which are found primarily in Northern Cape province."We believe that the manganese industry requires a South African champion," Tsengwa said. Exxaro is aiming to buy "a very good asset or two," as well as undertake exploration, she said.The steel industry accounts for 93% of manganese demand and will remain the dominant consumer of the metal, according to Tanisha Schultz, a Cape Town-based senior research analyst at Project Blue, which provides market intelligence on critical minerals. Batteries – including those used in electric vehicles – will triple their share of consumption to more than 7% by 2040, she said.Exxaro, founded in 2006 on coal, zinc and titanium assets split from a unit of Anglo American, has previously diversified into clean power projects, including wind farms.-BLOOMBERG- Sibanye faces $522 million claim over cancelled Brazil mines dealSibanye Stillwater is facing a $522 million compensation claim from investment firm Appian Capital Advisory over the termination of a $1.2 billion deal to buy Appian's Brazilian nickel and copper mines, the South African miner said on Monday.London's High Court last week ordered Sibanye to compensate Appian for the failed deal and said the damages would be determined at a hearing in November 2025."Appian currently claims damages of up to $522 million," Sibanye spokesperson James Wellsted told Reuters. "Sibanye's case is therefore that Appian is entitled to either no or significantly reduced damages."A spokesperson for Appian declined to comment.Sibanye announced in October 2021 the deal to buy the mines that are owned by affiliates of funds advised by Appian, in what was to become its biggest foray into battery minerals.Advertisement · Scroll to continueThree months later it abandoned the purchase, citing instability at the Santa Rita mine, which it said would have had a material and adverse impact on future operations.Wellsted said the claims Sibanye received comprise the difference between the purchase price agreed and the market value of the shares in the mines plus the costs and expenses associated with the resale process and management of the mines, and pre-judgment interest.The financial demands add to the challenges facing Sibanye CEO Neal Froneman, who is battling mounting losses due to a slump in prices for platinum group metals.Sibanye plans to argue that Appian failed a general principle of the English contract law that a claimant must take reasonable steps to mitigate its losses, Wellsted said."Appian is required to mitigate its loss by accepting offers for the mines at fair market value and to account for any profits it has made from its continuing ownership of the mines," he added.-REUTERS World Bank cuts 2024 growth forecast for sub-Saharan Africa over SudanThe World Bank said on Monday it had lowered its economic growth forecast for sub-Saharan Africa this year to 3% from 3.4%, mainly due to the destruction of Sudan's economy in a civil war.However, growth is expected to remain comfortably above last year's 2.4% thanks to higher private consumption and investment, the bank said in its latest regional economic outlook report, Africa's Pulse."This is still a recovery that is basically in slow gear," Andrew Dabalen, chief economist for the Africa region at the World Bank, told a media briefing.The report forecast next year's growth at 3.9%, above its previous prediction of 3.8%.Moderating inflation in many countries will allow policymakers to start lowering elevated lending rates, the report said.However, the growth forecasts still face serious risks from armed conflict and climate events such as droughts, floods and cyclones, it added.Without the conflict in Sudan, which devastated economic activity and caused starvation and widespread displacement, regional growth in 2024 would have been half a percentage point higher and in line with its initial April estimate, the lender said.Growth in the region's most advanced economy, South Africa, is expected to increase to 1.1% this year and 1.6% in 2025, the report said, from 0.7% last year.Nigeria is expected to grow at 3.3% this year, rising to 3.6% in 2025, while Kenya, the richest economy in East Africa, is likely to expand by 5% this year, the report said.-REUTERS Affordable housing group Calgro upbeat amid margin growth, eyes R399k apartmentsAffordable housing developer Calgro M3 says that while SA consumer pressure has weighed on its sales, it has also managed to significantly boost its profit margins in its half-year to end-August. The group has been helped by a focus on administrative costs and its previous spend on putting in place bulk infrastructure, which are factors that are expected to continue to pay off as it eyes further interest rate relief for SA.The group reported on Monday that units handed over fell over 27% to 869 in its six months to end-August, when revenue fell 26% to R507 million. But revenue generated within joint ventures increased from R23 million to R175 million, representing the contribution of its South Hills joint venture with Standard Bank and the City of Johannesburg.This limited the overall revenue decrease to 3%, CEO Wikus Lategan told News24, with less focus on public sector housing and a tight rein on administrative costs also helping its gross profit margin rise to 29.69% from 22.2%. Its headline earnings rose almost 15% to R97.4 million, while the contribution from its joint venture, along with buybacks, helped lift headline earnings per share by 28.55%.Valued at about R800 million on the JSE, Calgro primarily focuses on developments in Gauteng and the Western Cape, including Acacia Grove in South Hills, Johannesburg; and Sunset Village in Kraaifontein, Cape Town. Its development pipeline is over 38 000 units, while it also operates six memorial parks, which only contribute about 6% of group revenue, but this jumped 59% to R31.7 million to end-August.-FIN24

Company News in Brief

Comments

Namibian Sun 2025-04-04

Please login to leave a comment

Company News in Brief

Comments

Namibian Sun 2025-04-04

Please login to leave a comment

Login