Month: December 2023

Arrests and attacks: tracking China’s illegal mining in African countries

China’s massive metals industry can only maintain its size using imported minerals, frequently from limited suppliers. As part of its Belt and Road Initiative, the country has actively invested in mining assets in Africa and Latin America, and is beginning to engage in overseas refining and downstream facilities.

Many countries have welcomed this with open arms. Africa’s mining and mineral extraction industries, especially in countries like Nigeria, Namibia and Ghana, have attracted billions of dollars from China, one of the continent’s biggest participants. The vast reserves of cobalt, lithium, copper, and other minerals essential to modern technology production have attracted investment and operations in several African countries.

But recently, some African countries and China have reportedly experienced tensions in the mining industry. China has been accused of operating illegal mining activities and funding militant groups, disrupting the otherwise stable bond built on mining investment.

Is China funding Nigerian militant groups?

British newspaper The Times reported in April that some Chinese mining firms had funded Nigerian militant groups to get access to the country’s mineral reserves. This raises the prospect of China indirectly funding terror in Nigeria, causing societal disruption for its own gain.

According to The Times, Chinese firms working in certain regions of Nigeria where crime incidents are common have been “striking security deals with insurgents”. Attacks against Chinese citizens, estimated to number between 100,000 and 200,000 in Nigeria, have been widespread as a result of this.

Researchers discovered that interactions with militants are so strong in regions of Zamfara that some miners operate as spies for Chinese businesses that control gold-mining sites across Nigeria, it said.

The Chinese Embassy in Nigeria objected to The Times’ report at the time, calling it “unverified, unclear and unproven information”. The statement also noted the bilateral cooperation between China and Nigeria, which has brought “tangible” benefits to both countries. Nigeria has banned the export of raw materials, aiming to keep processing industries within the country, and on the surface, China seems happy to comply.

“The Chinese government was not, and would never be, involved in any form of funding terrorism. The allegations in the report were irresponsible and unethical, and the intention of the report is seriously questioned,” the Chinese government said in a statement.

Arrests for illegal mining activities in Nigeria

In September, ahead of Nigerian President Bola Tinubu’s visit to India for the G20 summit, Nigeria’s Foreign Affairs Ministry told the Chinese Embassy in Abuja that it would take action against companies if they did not obey the law.

People familiar with the matter said illegal Chinese companies were operating in some Nigerian states, including Niger, Zamfara and Edo, India’s Economic Times (ET) reported.

In July, Nigeria’s Economic and Financial Crimes Commission (EFCC) arrested 13 Chinese workers. Authorities alleged that the miners from W Mining Global Service were involved in illegal mining activities in the Kwara state, in the western part of the country. The suspects were arrested for illegal mining and non-payment of royalties to the Federal Government as required by law, according to the EFCC.

The EFCC discovered that the firm had utilised illegally mined granite to manufacture marble for local sale in Nigeria. The findings also showed that several suspects in the company did not have a work permit and entered Nigeria on a visitor’s visa.

In the span of eight months, the EFCC’s Ilorin Zonal Command arrested 80 unlicensed operators and impounded 24 truckloads of assorted minerals.

Chinese licenses revoked in Namibia

Another Chinese company, Sinuo Xiyan Nigeria, has been pursued by the EFCC and political powers. On 10 September 2022, the EFCC’s Ilorin Zonal Command arrested a Chinese national, Dang Deng, managing director of lithium miner Sinuo Xinyang Nigeria. He was charged with possessing 25 tonnes of assorted crude minerals and convicted on 19 October.

Namibia’s Minister of Mines, Tom Alweendo, revoked the company’s mining licence in April this year and ordered it to cease operations by the end of May. The minister alleged that the company used an improper application process to get the permit.

However, Xinfeng appealed the minister’s claims in the Namibian High Court, claiming Alweendo lacked the authority to reverse his prior decision to grant the mining licence. On 27 July, a judge ruled that this was the case.

In June, Namibia prohibited the export of raw lithium and other vital minerals to boost domestic processing and capitalise on the rising demand for metals used in clean energy technology worldwide. Four months later, the government ordered police to ban Xinfeng Investments from shipping or exporting lithium ore, accusing the Chinese miner of ignoring this restriction.

Nigerian Executive trade official Sikongo Haihambo at an event hosted by the Chinese Embassy earlier this year. Credit: Chinese Embassy in Namibia.

In a letter seen by Reuters, Namibia’s Mining Commissioner asked the country’s police chief to stop any trucks bringing raw lithium ore from Xinfeng’s Kohero mine, roughly 250km northwest of Windhoek, Namibia.

However, Namibian officials remain happy to promote the role of China in diplomatic relations. In a China-Namibia business networking event hosted by the Chinese Embassy, the country’s Executive Director of the Ministry of Industrialization and Trade spoke highly of China and its role in creating jobs for people in Namibia, according to the Embassy’s statement.

Pushing against exploitation

In addition to mining issues in Nigeria and Namibia, the Democratic Republic of Congo has banned six Chinese businesses operating in South Kivu for illegally extracting gold and other minerals. Before this, according to the ET, 33 Chinese nationals were detained in Ghana in 2019 for engaging in illegal gold mining activities.

Tom Sheehy, a distinguished fellow at the US Institute of Peace’s Africa Center, described the situation: “This isn’t just an issue of economic development, not just an issue of geopolitical competition. Sadly, the history of Africa has all too many cases of natural resources being exploited and fueling conflict,” he said.

In July this year, the Nigerian Ministry of Mines and Steel Development pushed for the cooperation of the federal and state governments to eliminate illegal mining activities.

Nigerian Minister of Solid Minerals Development Dele Alake claimed that the tenacity of President Tinubu’s administration will end the risk of illegal mining, which damages the country and costs it significant income.

“Africa has historically suffered exploitation by different global powers. China is only the newest comer to this ‘party’. What should bother us is the role African leaders play in the exploitation of Africans. If African leaders lead in the interest of their people rather than the selfish interest of the leaders, then Africa stands a chance to redefine its engagement with the rest of the world.”

“So long as the focus remains on who is the present or next exploiter, we perpetuate the narrative of victimhood, which serves the interest of bad leaders in Africa,” Leonard Otuonye Ugbajah, executive director at the Centre for Trade and Business Environment Advocacy, told the ET.

Ultimately, many African countries have taken measures to tackle illegal mining and exploitation, but China’s response remains uncertain.

December 6, 2023
Miners continued their strike after negotiations with Georgian Manganese

At a meeting with the management of the Georgian Manganese company, the miners failed to achieve their demands for increased wages, and the mine workers continued the strike.

As the ” Caucasian Knot ” wrote , on December 1, employees of the Darkveti mine stopped working, demanding that the Georgian Manganese company fulfill its promise to transfer them to a 12-hour work schedule and increase their salaries. About 800 workers from other mines of the company joined the miners’ action. On December 2, workers at 13 mines in Chiatura stopped work, supporting the demands of their colleagues from Darkveti.

In June, workers at the Chiatura mines went on strike, demanding decent pay and better working conditions from the Georgian Manganese company. They later moved on to street protests, joined by the miners’ families. On June 13, 10 strike participants went on a hunger strike, and several participants injured themselves. On June 24, miners and company management reached an agreement to end the strike and hunger strike. Management promised to increase wages first by 5%, then to 12%.

The meeting of the strikers with representatives of the management of Georgian Manganese, which took place on December 2 at the company’s office and lasted four hours, ended without results; the next round of negotiations is scheduled for Tuesday, December 5. The miners continue their strike, demanding that their demands be met. Already 1,700 Georgian Manganese workers are participating in the strike, the Formula TV channel reported today, the broadcast of which was watched by a Caucasian Knot correspondent.

“The employer agreed to switch to the so-called rotational mode five months ago, although the condition remained unfulfilled. The employer does not agree to pay us 164 lari ( about 60 dollars – Note by the Caucasian Knot ) for a 12-hour shift,” he said aired on the TV channel miner Tariel Mikatsava.

Miner Mirza Loladze also voiced his dissatisfaction in a TV report. “We were given a promise to raise wages during the end of the strike. Why did they give us a promise that they are not going to keep?” – he said.

Let us recall that in April 2021, the work of all 13 mines for the extraction of manganese ore in Chiatura was stopped due to a strike by miners who demanded a 50% increase in wages. That same month, all 3,700 Georgian Manganese miners ended their strike and returned to work. The company increased the salaries of all miners from May 1, 2021, but only by 25% .

Georgian Manganese is the country’s largest manganese ore mining company. It owns 11 mines and a processing plant. It includes the Zestafoni Ferroalloy Plant, the Chiatura Mining and Processing Plant (ChGOK), the Vartsikhe 2005 hydroelectric power station and the Feromedi clinic. The company is a leading manufacturer and exporter of high quality ferroalloys.

December 6, 2023
Kyrgyzstan intends to start mining at one of the largest gold deposits

As part of the visit of the Chairman of the Cabinet of Ministers Akylbek Japarov and following the results of participation in the MINEX geological forum, two memorandums were signed. Deputy Minister of Natural Resources, Ecology and Technical Supervision Emil Osmonbetov told reporters about this today, December 6.

“We signed the first memorandum with the owner of the company Chaarat Gold Holdings Limited – on further investment cooperation. This decision will bring money to our country and give a stable signal to all international investors that we have a favorable business environment and a good investment climate,” – he said.

Osmonbetov noted that environmental issues were also discussed with Chaarat Gold Holdings Limited.

“They will develop in the south of Kyrgyzstan, at the Chaarat gold deposit. It is one of the largest that we have put on our balance sheet.

Roughly speaking, there are more than 80 tons of gold. This is a large deposit, and they are preparing to develop it in the future,” he added.

It should be noted that Chaarat Gold Holdings Limited is the holder of the rights to develop the Chaarat gold deposit in Kyrgyzstan

In addition, Emil Osmonbetov said that a memorandum was signed on holding the MINEX geological forum in Kyrgyzstan in 2024.

“This is a platform for all mining companies where they can exchange opinions, meet and establish contacts. This is a big step – this has never happened in our country. It will probably take place in the summer, because there are certain rules for holding the event,” he added.

Osmonbetov noted that the event is planned to be held at the highest level.

December 6, 2023
AFM employees seized gold worth 35 million tenge from black miners

A group of people in the Akmola region, Astana and Shymkent were involved in illegal trafficking of precious metals on an especially large scale.

Their activities were exposed by employees of the AFM department for the Akmola region under the coordination of the regional prosecutor’s office. The entire scheme for the illegal mining, purchase and sale of gold, the manufacture of unaccounted jewelry from it and their sale has been established, inbusiness.kz reports with reference to the press service of the department .

“From 2019 to the present, five suspects were engaged in buying gold, illegally mined and processed by black miners in the village of Bestobe. Subsequently, gold bars were supplied through well-established channels, where unregistered jewelry of well-known brands was produced in clandestine workshops with stamps applied and sold in trading houses in Astana and Shymkent.

During the searches, more than 1 kilogram of gold bars with a gold content of 99.5% worth more than 35 million tenge were seized. Also, 335 unaccounted jewelry items prepared for sale were seized,” the statement said.

From January 2021 to October 2023, the turnover of funds between the suspects amounted to over 300 million tenge.

“Five people were recognized as suspects in the case, three of whom were subject to a preventive measure in the form of detention,” said Alibek Abdilov, official representative of the AFM RK.

In accordance with Article 201 of the Code of Criminal Procedure of the Republic of Kazakhstan, other information is not subject to dissemination.

In accordance with subparagraph 1 of paragraph 3 of Article 77 of the Constitution of the Republic of Kazakhstan and part 1 of Article 19 of the Criminal Procedure Code of the Republic of Kazakhstan, a person is considered innocent until his guilt in committing a criminal offense is established by a court verdict that has entered into legal force.

December 6, 2023
A metallurgical plant will be built in the Zhetysu region

In the Zhetysu region, implementation of a large project has begun for the construction of a metallurgical plant with a capacity of 860 thousand tons of copper concentrate per year. Akim of the region Beibit Isabaev announced this at a briefing at the SCS site, reports the correspondent of the business information center Kapital.kz with reference to the press service of the akimat.

The cost of the project is 1.3 trillion tenge, the company plans to create more than 2,000 jobs.

Currently, the construction of warehouses and other technical premises for storing equipment and goods has been completed. Construction of the plant will begin in 2025 and will be completed in 2027.

The project is being implemented by Consolidated Construction Mining Company LLP.

In general, as Beibit Isabaev reported, the region’s investment portfolio until 2030 contains 184 projects worth 2.2 trillion tenge with the creation of more than 9 thousand jobs.

Earlier, Prime Minister Alikhan Smailov spoke about the work to attract foreign direct investment to Kazakhstan and implement new investment projects. “Last year, our volume of foreign direct investment amounted to a record level over the past 10 years of $28 billion. First of all, these investments went to the mining and metallurgical complex, manufacturing industry, trade, transport and financial sector,” said Alikhan Smailov.

December 6, 2023
Tokayev: Kazakhstan is ready to become the main supplier of rare earth minerals

At the World Climate Summit, the President of the Republic of Kazakhstan called not to require developing countries to sacrifice national development in the name of climate protection

Today, almost half of the world’s population lives in regions that are highly dependent on climate change, Kassym-Jomart Tokayev noted in his speech at the Summit of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP 28) in Dubai on December 1.

“Small island developing states, landlocked developing countries and least developed countries are at greatest risk,” the President of the Republic of Kazakhstan emphasized.

Kazakhstan became the first country in the region to ratify the Paris Agreement and adopt the Carbon Neutrality Strategy until 2060, the speaker recalled. “Our country has enormous potential for the development of wind and solar energy, as well as for the production of green hydrogen. We will continue to work closely with our partners to unlock this potential. As a leading exporter of uranium, accounting for 43% of the world’s supply, we play a critical role in generating carbon-free electricity on a global scale,” Tokayev said.

As the world decarbonizes in the coming decades, critical minerals, including rare earths, will become irreplaceable, the president emphasized. “Kazakhstan is ready to become the main supplier of these transition minerals. We also actively support private green initiatives. For example, the Association of Packers of Kazakhstan is working on projects to get rid of plastic waste, contributing to environmental protection. I think it is principled and fair not to demand that countries with developing economies sacrifice national development and modernization in the name of climate protection. On the contrary, these goals should go hand in hand and reinforce each other. “Bold steps are needed,” Kassym-Jomart Tokayev expressed his opinion.

Reducing methane emissions is the fastest way to slow down the rate of global warming, the speaker recalled and said that Kazakhstan has decided to join the Global Commitment to Reduce Methane Emissions. “At the same time, we strive to solve the large-scale coal problem in the countries of our region by implementing the region’s first Just Energy Transition Partnership (JETP) in Kazakhstan. For both these initiatives to succeed, we call on our friends and partners to provide concrete support,” he said. “More broadly, we hope that the international community will increase its commitment to increasing climate finance. But financing is only the first obstacle. Even if we manage to limit global temperature rise to 1.5 degrees by 2050, Central Asian countries will still face a temperature rise of up to 2.5 degrees. This will lead to water shortages, extreme heat, desertification and extreme hydrological events. Therefore, adaptation is inevitable and necessary.”

As a concrete measure, Tokayev called for more funds to be allocated to support the International Fund for Saving the Aral Sea, adding that Kazakhstan will take over the chairmanship of the fund next year and hopes to involve all partners in solving this problem.

“Based on the successful results of COP 28 held this week, I invite participating states to the Astana International Forum in June 2024. The forum can serve as a dialogue platform for continued focused cooperation on pressing climate-related issues until COP 29,” Tokayev addressed the audience and summed up the speech: “To give impetus to climate action in Central Asia, we also decided to convene a Regional Climate Summit in Kazakhstan in 2026 under the auspices of the UN. The climate emergency is a global crisis that requires a global response. We have a shared responsibility to preserve our planet and ensure a sustainable future for everyone. Kazakhstan firmly believes that only collective action and cooperation will help us solve the climate crisis.”

December 5, 2023
Coal mining companies face difficulties when exporting products

At the AGMP site, a meeting was held on problematic issues of the coal industry, chaired by the advisor to the executive director of the association, Tulegen Mukhanov.

At the meeting with the participation of representatives of coal mining companies, issues of supplying municipal coal to the domestic market, selling coal for export, and implementing proposals within the framework of the resolution of the IV Coal Industry Forum were discussed.

According to operational information from coal mining companies, the domestic market is currently supplied with municipal coal. The current situation regarding the supply of solid fuel to the population is under constant control of the Ministry of Industry and Construction, NPP Atameken, and AGMP.

Issues of loading coal for export are also discussed weekly at meetings of the operational headquarters established at the Atameken National Chamber of Entrepreneurs with the participation of the Ministries of Transport, Trade and Integration. AGMP takes an active part in the meetings.

At the meeting, specialists from coal mining companies drew attention to such difficulties in supplying products to non-CIS countries, such as a shortage of cars, non-coordination of transportation plans by KTZ, Russian Railways, and the introduction of conventional bans. Meanwhile, untimely delivery of coal to foreign buyers entails the accrual of significant fines, as a result of which the financial burden on coal mining enterprises will increase. Moreover, export contracts are concluded on strict conditions of continuity of supply. The lack of supply guarantees will certainly affect the choice of coal buyers, which may lead to loss of sales markets and will affect a decrease in coal production volumes.

According to Ilyas Mazhitov, director of the department of coal industry and energy of ASMP, earlier ASMP sent a letter about problems with coal exports to the Ministries of Transport, Trade and Integration, KTZ. It is planned to contact government agencies with a similar letter in the near future.

Following the results of the IV Coal Industry Forum, its participants adopted a resolution. The first paragraph of the resolution stipulates that AGMP and NCE RK “Atameken”, together with the Ministry of Industry and Construction, will develop a long-term Program for the Development of the Coal Industry of Kazakhstan in order to formulate a predictable state policy regarding the industry, including encouraging the development of new deposits. AGMP together with the Ministry of Railways have begun to implement this issue. Thus, a Working Group is being created under the Industry Committee of the Ministry of Railways.

“The program for the development of the coal industry will be a historical document, which will be developed for the first time in our country, so we encourage coal mining enterprises to actively participate in its preparation,” T.M. Mukhanov emphasized.

Coal mining companies also addressed specific issues to the AGMP to facilitate their resolution.

December 5, 2023
Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

National Atomic Company Kazatomprom and the UAE energy company Emirates Nuclear Energy Corporation (ENEC) signed the first ever contract for the supply of Kazakh natural uranium concentrate for the energy needs of the UAE Barakah nuclear power plant.

The signing took place as part of the official visit of the President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the United Arab Emirates, during which the Kazatomprom delegation took part in the United Nations Climate Change Conference COP28.

“We are proud that the first ever commercial contract between Kazatomprom and ENEC will mark the beginning of an important and promising cooperation between our companies. We are very pleased that our sales geography has expanded to the UAE and highly appreciate the recognition of Kazatomprom’s role in ensuring the UAE’s energy security and achieving zero emissions, which indicates our company’s strong reputation as a reliable supplier in the global nuclear fuel market. We hope that in the future our partnership will only strengthen thanks to the signing of new contracts aimed at ensuring uninterrupted supplies of natural uranium for the Baraka nuclear power plant,” said Meirzhan Yusupov, Chairman of the Board of NAC Kazatomprom JSC.

“Signing a contract with Kazatomprom, the world’s largest uranium producer, is strategically important for ENEC in terms of further diversification and ensuring the security of nuclear fuel supplies. With many countries making a significant positive shift towards incorporating civil nuclear power into their energy mix, the security of fuel supply is of paramount importance. Kazatomprom is expanding our list of partners to ensure a sustainable supply of fuels to produce clean electricity to decarbonize energy-intensive and heavy industries in the UAE,” said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of ENEC.

The conclusion of this contract with a large UAE energy company will serve as a new impetus for cooperation between nuclear companies of both countries, and will also open a new country in the sales geography of Kazatomprom.

The scope and commercial terms of the contract are confidential and commercially sensitive and are not subject to public disclosure.

December 5, 2023
New coal mine’s business case ‘is dead’

The business case for the UK’s first new deep coal mine for 30 years is “dead”, a Cumbrian MP has said.

Westmorland and Lonsdale Liberal Democrat MP Tim Farron said the country’s two largest steel manufacturers did not want the coking coal the mine near Whitehaven in West Cumbria would produce.

“And I obviously think that digging coal and other fossil fuels out of the ground to burn them in a climate emergency is just stupid,” he said.

The Department for Levelling Up, Housing and Communities has been approached for comment.

The mine’s operator, West Cumbria Mining, has said it would extract coking coal for steelmaking in the UK and Europe.

Most steel production involves heating coal to high temperatures and combining it with iron.

But steel manufacturers Tata and British Steel have said they plan to move to different, lower carbon, production methods.

“[They] are now on the record as saying that they’re not in the market at all for coal from any future West Cumbrian coal mine,” Mr Farron said.

“And that means that what we already suspected is kind of confirmed: the business case for the West Cumbria coal mine is dead.”

Mr Farron said 100% of the coal would need to be exported to make the mine viable.

West Cumbria Mining has been approached for comment but previously said it would “assist the steel industry migration towards the government objective of a zero net carbon emissions target by 2050”.

‘Level of cruelty’

The company has permission to dig until 2049 and expects to create about 500 jobs.

Mr Farron said these would be short term because the mine’s business case “didn’t stack up”.

He said there was “a level of cruelty” in the government’s support for the mine, accusing it of giving false hope of jobs for political reasons.

“Why would you flog this if it wasn’t for the fact that you think it’s good to put on your leaflets against the other parties in Workington and Whitehaven and around?” he said.

He said the country should be investing in tidal and marine power in West Cumbria to provide long-term, well-paid, skilled jobs.

“Britain’s got the highest tidal range on planet earth after Canada,” he said.

“We’re using nearly none of it.

“The West Cumbria coast – there you’ve got it. Use that tidal and marine energy, it’s there to be tapped.”

December 4, 2023
Economy Minister: Azerbaijan aims for reduction of greenhouse gas emissions by 40% by 2050

Within the framework of the 28th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP 28), a Leaders Summit has been held in Dubai, the United Arab Emirates.

Assistant to the President of the Republic of Azerbaijan – Head of the Department of Foreign Policy of the Presidential Administration Hikmat Hajiyev and Minister of Economy Mikayil Jabbarov attended the Summit.

Speaking at the event, Mikayil Jabbarov said that as the Chair of the Azerbaijan Non-Aligned Movement (NAM), the country paid a special attention to climate change.

“Since the adoption of global initiatives, Azerbaijan has demonstrated a firm commitment to their universal promotion and the implementation of the climate initiatives and the 2030 Agenda. The commitment to fostering transformative changes reflects a dedication to reshaping the national economy with a focus on sustainability, inclusive growth and clean energy. Additionally, remodeling economies requires effective and sustainable financial sources globally. For that reason, it is crucial to establish networking platforms to explore opportunities for private sector investors making a positive impact on accelerating green growth,” the Azerbaijani minister emphasized.

“As a driver of the green energy transformation, renewable energy sources will constitute 24% of the installed capacity for electricity generation in Azerbaijan by 2026, with a more ambitious target of reaching 30% by 2030. Azerbaijan aims for a significant reduction of greenhouse gas emissions by 40% by 2050. This includes the establishment of a green energy zone in the Karabakh and Easter Zangazur regions liberated from 30 years occupation of Armenia, contributing to the implementation of the commitments on climate change. The path to realizing a sustainable future is apparent, yet it presents challenges demanding our immediate and collective attention. One notable challenge in our pursuit of a green economy is the contamination of our lands resulting from extensive mine activities. Azerbaijan acknowledges the crucial role of demining initiatives in fostering sustainable development and facilitating green transformation. Recognizing the substantial impact of demining on the wellbeing and advancement of the region, as well as its broader significance for our country’s development, humanitarian demining is formally designated as the 18th National Sustainable Development Goal in Azerbaijan,” Mikayil Jabbarov added.

December 4, 2023