May 17, 2020

[INFOGRAPHIC] Australia, Brazil controlling Chinese supply of iron ore

Iron ore
2 min
China's price of iron ore was recently assessed at $56.75/Dry Metric Tons (dmt), which is up from a record low of $44.50/dmt earlier in July.
Despite demand for iron ore in steady decline in China, its share of imports from top mining countries such as Australia and Brazil continues to increas...

Despite demand for iron ore in steady decline in China, its share of imports from top mining countries such as Australia and Brazil continues to increase.

According to data from General Administration of Customs, China imported 453.1 million metric tons of iron ore in the first six months of 2015 with 83 percent of it coming from either Australia or Brazil. That is an increase of 74 percent from the same time period in 2014.

RELATED TOPIC: LNG surpassing coal and iron ore in Australia

Mining giants Vale, Rio Tinto, BHP Billiton and Fortescue Metals Group each reported increased output in its second-quarter results from April-June. However, the output of iron ore from smaller mining companies has taken a steep fall.

The Platts IODEX CFR China price of iron ore was recently assessed at $56.75/Dry Metric Tons (dmt), which is up from a record low of $44.50/dmt earlier in July as the market finally stabilized. Many believe the drop was due to recent chaos on Chinese equity markets.

RELATED TOPIC: Iron ore prices fall into danger zone

When the price dips below $50, it’s often much more difficult for smaller mining companies to survive.

As a result of the fluctuation, supply from smaller miners has become far less stable. Although some of the major steel mills would rather purchase from top miners, others continue to work out negotiations with the smaller companies

RELATED TOPIC: Top 10 Iron ore producers based on 2015 guidance

Miners both large and small have begun searching for way to cut costs any way they can due to weak low prices and China’s weakening demand.   A slowing economy and property market has cut China’s steel usage by over five percent during the first five months of 2015.

With a crackdown on China’s most polluting industries along with little hope of an increase in demand, things look quite bleak for the industry for the remainder of the year.

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Apr 19, 2021

AngloGold Ashanti establishes BG Umoja JV in Tanzania

Daniel Brightmore
3 min
AngloGold Ashanti, Geita, Tanzania, BG Umoja
AngloGold Ashanti’s BG Umoja JV has been awarded a $186mn two-year contract for the Nyankanga and Geita Hill underground mining projects in Tanzania...

AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.

Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited. 

The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.

AngloGold Ashanti

“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa. 

“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”

AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.

Scope 3 Emissions

In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.

To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.

Diversity & Inclusion

The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.

AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.

Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.

Geita Gold Mine

Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.

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