Tag Archives: resource exploitation

The Power Plays in Africa

As the overthrow of despot Robert Mugabe entered a stalemate on November 17,  2017, eyes turned to China — Zimbabwe’s largest foreign investor and a key ally — amid speculation over its role in the military coup.Source in Harare believe the Zimbabwean conflict within the ruling party Zanu PF is involving two rival camps has direct links to China and Russia with both countries trying to control and protect their own economic interests.

The army chief General Constantino Chiwenga, visited Beijing l — just days before tanks rolled into the streets of Harare. President Mugabe has been been hostile to the Chinese in recent years accusing them of plundering the countries diamonds worth $15 billion.  On October 2017 First Lady Grace Mugabe was in Russia where she represented her 93-year-old husband at a function where he was honoured with some accolade in Russia at the World Federation of Democratic Youth (WFDY) in Moscow.

“It is a BRICS internal rivalry with both Russia and South Africa on one side trying to protect their economic interests and China on the other side,” a regional think-tank in London said on November 17, 2017… Russia has been investing in several projects in southern African nations, for example, the ALROSA group of diamond mining companies is engaged in several projects in Zimbabwe, while mining and steelmaking company Evraz and Severstal steel and steel-related mining company conduct their business in South Africa.

Russia and South Africa, which together control about 80% of the world’s reserves of platinum group metals, have created a trading bloc similar to OPEC to control the flow of exports according to Bloomberg.

Zimbabwe, Canada, and the U.S. are among other major platinum group metals producers.

Russian and South African officials signed a memorandum of understanding today to cooperate in the industry.South Africa mines about 70 percent of the world’s platinum, while Russia leads in palladium, a platinum group metal used in autocatalysts, with about 40% of output, according to a 2012 report by Johnson Matthey Plc.

According to the Chamber of Mines of Zimbabwe (CMZ) and geologists, Zimbabwe has far bigger platinum reserves than Russia. The country currently has the second known largest platinum reserves after South Africa. Experts say underfunding and limited exploration has over the years stifled growth of the mining sector.

The Zimbabwe chamber is on record saying it seeks to increase production to the targeted 500 000 ounces per annum requires the setting up of base and precious metal smelters and refineries, investment of $2,8 billion in mines, $2 billion in processing plants and between $200 and $500 million to ensure adequate power supply. Already, the country’s major platinum miners – Zimplats, Unki and Mimosa who are currently processing the metal in neighbouring South Africa – have undertaken to construct the refinery….

Miles Blessing Tendi, a lecturer in African history and politics at the University of Oxford, says there is no way to be certain if China knew about Mugabe’s fate but believes China’s respect for sovereignty would make their involvement uncharacteristic.

Excerpt, It gets ugly as Russia and South Africa gang-up against China over Zimbabwe coup, http://www.thezimbabwemail.com/, November 17, 2017

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Firing Lawsuits and Hiring a Bear

Spirit bear image from wikipedia

In 1849 the First Nation of Ojibways, a Canadian indigenous group, fired a cannon into a copper mine that had gone ahead without their approval.These days Canada’s aboriginal groups use public pressure, backed by legal action, to protect their lands against exploitation by outsiders. In February 2016 the government of British Columbia reached agreement with forest companies, environmental groups and 26 First Nations communities to protect from logging an area on the Pacific coast larger than Belgium—newly dubbed the Great Bear Rainforest. The deal, which allows logging and mining in areas aboriginals have agreed to, is the culmination of a long public-relations campaign (choosing the Kermode bear as its mascot was a masterstroke). It would have got nowhere without centuries of treaty-making and decades of case law to back it up….

The federal aboriginal affairs agency is party to 554 proceedings involving such rights (not all of which concern resource firms). That does not include disputes between aboriginal groups and firms. Projects as diverse as seismic testing for mineral deposits in Arctic waters and fracking in the west face challenges. Until 1951 such lawsuits were barred. They are expensive and can drag on for years; the outcome is never assured. The Tsilhqot’in, who filed suit in 1998 against logging on their ancestral lands in British Columbia, finally won in 2014 and now have title to 1,750 square km (1,100 square miles). But the Innu of Ekuanitshit in Quebec last year lost their bid to stop the Muskrat Falls hydropower project, which they say will affect caribou herds.

Some big projects are caught in legal limbo. The Northern Gateway pipeline, which is to bring crude oil from Alberta to Canada’s west coast, has been stalled for more than a decade, largely because of opposition from First Nations groups along its route, some of them parties to the Great Bear agreement. The Pacific Northwest liquefied natural gas project, backed by Petronas, a Malaysian state-owned firm, has offered C$1 billion ($726m) in benefits over 40 years to the Lax Kw’alaams nation of northern British Columbia. That has not allayed fears that the project would destroy salmon fisheries.

When such disputes are unresolved, the price can be high. The Northern Gateway pipeline would add C$300 billion to Canada’s GDP over 30 years.

Mners and aboriginals in Canada: I’ll see you in court, Economist, Feb. 6, 2016 at 33