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AFRIcA DoWn UnDeR

COVID-19

security warning

rivate sector organisations such as min- Islamic State is seeking a comeback in parts
Pers, explorers and METS companies in Af- of Africa. We’ve seen some events play out in
rica have been warned that violent extremists recent months…in places such as Somalia,
have ramped up threats for potential terror at- the DRC and Mozambique.”
tacks in the wake of the COVID-19 pandemic. In August, militants with links to Islamic ASPI’s Lisa Sharland spoke to Africa Down
Speaking via video link from Canberra, State captured the port of Mocimboa da Praia Under delegates via video link from Canberra
Australian Strategic Policy Institute (ASPI) in Mozambique’s Cabo Delgado province.
head of international program Lisa Sharland The port is considered the gateway to the enduring threat of terrorism, were highlighted
said security challenges had increased in country’s multi-billion dollar LNG industry. in a defence whitepaper published about four
parts of the African continent since March, Sharland noted concerning levels of food years ago and had been somewhat acceler-
particularly in regions where terrorist groups security and increased poverty in Mali due ated by COVID-19.
already have an established presence. to both COVID-19 and the growing threat of “Military modernisation is accelerating
“We have seen that terrorist activity has violent extremism. faster than envisaged, particularly in the Indo-
continued to shift from the Middle East to Af- “We’ve also seen misinformation cam- Pacific, and this includes the development of
rica, particularly in the Sahel,” Sharland told paigns and conspiracy theories which have cyber capabilities,” Sharland said. “The rules-
Africa Down Under. increased intercommunal tensions,” she said. based global order is also being undermined
“According to the UN, terrorist groups in “A number of these security developments and disrupted and the conduct of ‘grey zone’
Mali and the Sahel have actually taken ad- do have an impact on the way that mining activities has expanded.
vantage of COVID-19, and I quote: ‘to inten- companies are able to operate on the conti- “Not surprisingly, it noted that COVID-19
sify their attacks and to challenge state au- nent.” has altered many of these trajectories, with
thority throughout the sub-region with higher Sharland added that some of the likely some countries using the situation to seek
rates of civilian casualties’. future drivers of conflict, including the rela- greater influence.”
“Then there are, of course, concerns that tionship between the US and China and the
– Michael Washbourne
Toliara still top of Base thoughts

espite a slowdown in negotiations over fis- proved returns,” he said. “Negotiations are nificant cash generation.”
Dcal terms for the project, Base Resources progressing well and heading in the right di- Kwale’s future will depend on Base’s ex-
Ltd has no intention of walking away from its rection.” ploration success. The company plans to
Toliara mineral sands development in Mada- Base will require 26 months from an invest- release a PFS for the North Dune resource
gascar. ment decision to build Toliara, meaning the in the first quarter of 2021 and is also contem-
Base had intended to be reaching a final company’s foundational asset, Kwale, will plating exploration programmes at a regional
investment decision on Toliara by the end of continue to carry the cash generation respon- level.
this year but having already seen the Mala- sibilities in the company. “There are some areas of pretty significant
gasy Government suspend on-ground activ- Kwale, now in its eighth year of operation, interest to us and we are pushing on getting
ity while the investment terms were finalised, continues to meet those responsibilities, al- access to them. We think we have got some
progress was further impacted by the onset of beit at lower rates this year. options for extending the mine life.”
the coronavirus pandemic. “We made a big transition 18 months ago The company also holds the Kuranze min-
Base managing director Tim Carstens now at Kwale moving from the Central Dune down eral sands project, 70km west of Kwale.
expects the final investment decision to come to the South Dune,” Carstens said. “We are “We are pretty excited about unwrapping
no earlier than September 2021 but told Af- now in a new paradigm of low-grade, high- that opportunity over the next few years,”
rica Down Under Toliara was still a priority for value where our constraint is the mine and Carstens said.
the company. the concentrator. Kwale’s steady return and the delays at
“We remain completely committed to deliv- “We’ve seen our production volumes fall Toliara led Base towards a maiden dividend,
ery of Toliara,” Carstens said. away and we are in our lowest-grade year paid earlier this year.
The suspension of on-ground activity had for the South Dune, so we just need to get “With the open-ended delay to Toliara, we’d
been a blow to Base but Carstens said the through this.” broken the nexus between cash accumula-
company understood the Government’s con- Despite the lower-grade scenario, the mine tion and the need to deploy it at Toliara, so we
cerns around mining projects generating an – just south of Mombasa in southern Kenya – made the decision it was time to jump to the
adequate return for the country. is still producing cash for Base. dual track of cash returns and pursuing our
“Madagascar has been disappointed with “Kwale is still a significant cash generator,” development strategy,” Carstens said.
the outcomes at QMM and Ambatovy [the Carstens said. “Last year it produced just shy “That is the approach we are looking to
two existing operations in the country] and of $US100 million. We won’t be at quite the take forward; managing those two tracks.”
quite reasonably the Government wants im- same level this year but there will still be sig-
– Dominic Piper

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