Speaking yesterday, Zambia Mines Minister Richard Muskwa indicated that the country does not expect its mining assets to be taken away by bondholders following last week’s default and that it has no plans to sell its shares in mining companies. According to Muskwa, “Zambia aims to strike a win-win situation” with bondholders. Meanwhile, the Minister indicated that negotiations with Glencore on increasing the govern-ment’s stake in Mopani are nearing a conclusion.
On the output front, Minister Muskwa noted that Zambia produced 646,111 tonnes of copper between January and September 2020, up from 590,321 tonnes in the same period last year. The 9.45% rise was attributed to increased mine output. For 2020 copper output is forecast to be 820k tonnes.
Base metals have surged during November driven by hopes of a COVID-19 vaccine coming from a number of quarters. The LMEX Index has advanced to its highest level since June 2018 with investors and traders alike pricing for a strong recovery in global economic conditions in 2021. China currently is out in front with a “V-Shaped” recovery very much a reality, the vaccine may result in the US and EU coming out of the dol-drums in due course following lockdown measures instituted in the EU as the second wave of COVID-19 hits.