Africa

Alan Swaby looks at a FTSE 100 oil company that didn’t have a barrel of oil to its name 25 years ago—but now has billions.

Tullow Oil is sitting on vast reserves of oil, so much so that the share price has gone from 400p in 2006 to 1400p today. Its biggest find to date—the Jubilee offshore field in Ghana—came on stream in 2010, just three years after the discovery was made. Other global sites saw an average of 58,100 boepd in 2010 from fields as far apart as the North Sea and Pakistan. 

International mining group Rio Tinto has now acquired 99.74 per cent of the shares of Riversdale Mining Limited after Tata Steel today allowed its 26.28 per cent stake into Rio Tinto's takeover offer.

Riversdale has hard coking-coal projects in Mozambique and also owns an underground coal mine in South Africa—Zululand Anthracite Colliery. Mozambique is strategically well placed to supply hard coking coal to India and Brazil, where the steel industry is growing and a number of new coal-fired power stations are being built.

Gold mining company Pan African Resources has reported “encouraging” results from its drilling programme at a tailings dam at Barberton Mines in South Africa.

The drilling, on the Bramber tailings dam, revealed a resource of 148,000oz at a grade of 1.47g per ton in situ—a relatively high grade for a tailings dam.

UK-based drinks giant Diageo has agreed to purchase a 20 per cent share in Kenya Breweries Limited (KBL) from SABMiller, through its subsidiary East African Breweries Limited (EABL).

The sale, announced today, is subject to KBL agreeing to terminate a brewing and distribution agreement with SABMiller, which will also see it ceasing to distribute SABMiller's brands in Kenya after a short transitional period.

Tullow Oil has announced its second acquisition in the space of seven days—this time purchasing the interests of EO Group, which include those offshore Ghana.

The deal, worth $305 million, will increase Tullow's interest in the West Cape Three Points licence offshore Ghana by 3.5 per cent to 26.4 per cent. It will also increase its interest in the Jubilee Oil field, which it already operates, by 1.75 per cent to 36.5 per cent.

The agreement is conditional upon various approvals, including from the government of Ghana.

South Africa is putting great effort into improving living standards for its more disadvantaged citizens, as Alan Swaby discovers.

The Port of Cape Town is Africa’s gateway to Europe and the Americas; and it’s being prepared to continue this role through the 21st century.

When the Africa Ports and Harbours Congress opens at the Sandton Centre in Johannesburg in July, a lot of interest will focus on Transnet’s massive R80 billion capital investment programme. Ports all around the African coast are expanding, adapting and re-equipping rapidly to meet the changing patterns of export and import, transhipment and intermodal support affecting African trade.

South African miner Exxaro has made a takeover bid for Australian miner Territory Resources for A$123 million in cash.

Territory has an iron ore operation in Australia’s Northern Territory, with an operating mine at Frances Creek positioned close to rail and port infrastructure serving the port of Darwin. The mine produces approximately 1.6 million tonnes per annum of lump and fine direct shipping ore.

Territory also owns rights to iron ore tenements in the vicinity of Frances Creek.

Having established a solid market position in the downstream and retail oil market in East Africa, MOGAS is expanding aggressively and preparing to diversify. CEO Geoffrey Rugazoora outlined his vision to John O’Hanlon.

African Rainbow Minerals has recently embarked on another phase of expansion – this time mining a new commodity in a new country. Jayne Alverca takes to the copper trail.