LUSAKA (Reuters) – Zambia’s president Edgar Lungu has called for an out of court settlement with First Quantum Minerals, which is being sued for $1.4 billion by a state-owned firm, the presidency said on Thursday.

First Quantum asked a Zambian court in February to dismiss the suit from Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), which is 77 percent state-owned and holds minority stakes in most of the country’s copper mines.

“The president decided that the finance minister leads a government team to engage First Quantum for a speedy and amicable conclusion of this matter,” presidential spokesman Amos Chanda said.

“The government team includes the minister of mines and should start work by next week so that we can quickly have an amicable settlement as directed by the president,” he said.

Zambia is Africa’s second-largest copper producer and differences with mining companies over taxes, electricity prices, environmental concerns and labour matters often arise.

The $1.4 billion claim by ZCCM-IH includes $228 million in interest on $2.3 billion of loans that it said First Quantum wrongly borrowed from the Kansanshi Copper Mine, as well as 20 percent of the principal amount, or $570 million.

ZCCM-IH said in papers filed in the Lusaka High Court on Oct. 28, 2016 that First Quantum used the money as cheap financing for its other operations.

First Quantum says the loans were at a fair market rate.

Chanda said another team headed by the minister of energy would engage mining companies, including First Quantum Minerals, regarding a proposed increase in electricity prices.

Zambia said in April it plans to introduce a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh) backdated to January for mining companies, rather than individually negotiated rates that have averaged 6 U.S.

(Reporting by Chris Mfula; editing by David Clarke)

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By Alexis Akwagyiram

LAGOS (Reuters) – Nigeria’s government should simplify taxes and reduce fees involved in laying fibre optic cables to encourage development of infrastructure for the technology industry, Google’s manager in the West African country said on Tuesday.

Juliet Ehimuan-Chiazor told Reuters boosting the technology industry would help diversify Nigeria’s oil-dependent economy, the largest in Africa and which is now in its second year of a recession caused mainly by low crude prices.

The Budget and National Planning Ministry said in March the government should encourage local production of technology hardware to reduce dependence on imports and generate foreign exchange. The government aims to create 2.5 million new technology jobs in 2017-2020 via a state-run training programme.

“The private sector can play a very strong role,” Ehimuan-Chiazor said, adding that internet service providers regularly complained that multiple taxes at the federal and state level raised the cost of expanding the required infrastructure.

“Where the government can help is just removing some of those obstacles – for example, bringing down right of way fees and removing this challenge around multiple taxation,” she said.

Right of way fees are the charges paid when securing permission to lay cables. A reduction of fees by Lagos state government helped bring fast broadband to Yaba, a district of commercial capital that is now Nigeria’s technology hub.

Ehimuan-Chiazor said Google had laid fibre optic cables in Uganda’s capital Kampala and in Abidjan in Ivory Coast, but said it had no similar plans in Nigeria.

A spokesman for the Communications Ministry could not immediately be reached for comment.

(Editing by Edmund Blair)

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By Camillus Eboh

ABUJA (Reuters) – Nigeria’s upper house of parliament aims to consider the government’s 2017 budget on Thursday, the Senate president said, and could approve the spending plan the same day in the next stage of its marathon passage into law.

President Muhammadu Buhari, who has faced rising disenchantment over his handling of Africa’s largest economy, presented his record 7.298 trillion naira ($23.24 billion) budget to lawmakers in December.

“We will send out copies to you (senators) and the report will be considered on Thursday,” said Senate President Bukola Saraki. The budget could be passed on Thursday if senators do not seek to make changes.

A document published by the lower house, which also has yet to approve the budget’s contents, on Tuesday said the spending plan now totalled 7.44 trillion naira.

The budget must be passed by lawmakers before the president can sign it into law. President Buhari is on medical leave in Britain and on Sunday handed over power to his deputy Yemi Osinbajo.

Nigeria is in its second year of recession brought on by low oil prices which have slashed government revenues, weakened the naira currency and caused chronic dollar shortages.

Last year’s budget – passed in May 2016 – was delayed for months due to disagreements between lawmakers and the presidency, cutting the supply of government money and deepening the economic crisis.

(Writing by Alexis Akwagyiram; Editing by Mark Trevelyan)

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LAGOS (Reuters) – Lafarge Africa plans to seek shareholders’ approval next month to raise 140 billion naira ($445.86 million) and also convert some loans into equity as part of the capital injection, the company said on Monday.

The local business of Lafarge Holcim said it will seek approval to convert loans due from a shareholder to equity under the rights issue.

($1 = 314.0000 naira)

(Reporting by Oludare Mayowa; Writing by Chijioke Ohuocha; Editing by Louise Heavens)

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BAMAKO (Reuters) – Industrial gold production in Mali could drop slightly this year as the West African country awaits production from new mines in 2018, the ministry of mines said on Friday.

Output from large-scale mines, including Anglo Gold Ashanti and Randgold Resources, in Africa’s third-largest gold producer is expected to hit 45 tonnes in 2017, down from 46.9 tonnes last year, said National Director of Mines, Lelanta Hawa Ba.

He said the forecast was subject to revision upwards, however, depending on mines coming online. Last year Mali beat its production forecasts, and he said that could be possible this year too.

Canadian miner B2GOLD’s Fekola mine is expected to produce about 10 tonnes per year and Hummingbird Resources’ Yanfolila mine about 3 tonnes, according to the ministry. The mines are expected to start full production next year.

Artisinal output is set at 4 tonnes, making total official production of 49 tonnes in 2017. Artisinal production is much higher than 4 tonnes, ministry officials say, but there are no exact figures and the government prefers to cap it at 4 tonnes in official forecasts.

The gold industry contributes around a quarter of the government’s revenues.

(Reporting Tiemoko Diallo,; Writing by Edward McAllister; Editing by Susan Thomas)

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NAIROBI (Reuters) – The Monetary Policy Committee of Kenya’s central bank will meet to set lending rates on May 29, the bank said on Wednesday.

The policymakers held the bank’s benchmark lending rate at 10.0 percent at the last meeting in March.

(Reporting by Duncan Miriri)

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CAIRO, May 3 (Reuters) – Egyptian private-sector activity shrank at the slowest pace in nine months in April as output and new orders continued to decline, a survey showed on Wednesday.

The Emirates NBD Egypt Purchasing Managers’ Index (PMI) for the non-oil private sector stood at 47.4 points, up from 45.9 in March but remaining below the 50 point mark separating growth from contraction for the 19th month in a row.

New orders continued to decline but at a slower pace, with the related subindex reaching 46.3 points in April compared with 43.8 points the previous month.

New export orders grew for the first time in almost two years, at 51 points in April from 48.9 points in the previous month.

Egypt has struggled to revive its economy since a popular uprising in 2011 drove away investors and tourists, hitting inflows of foreign currency it needs to import raw materials and jumpstart its domestic industries.

It allowed its currency to float freely on exchange markets on Nov. 3, in a bid to unlock foreign currency inflows and encourage exports of Egyptian products.

“The slower pace of deterioration in the headline Egypt PMI… reinforces the perception that after bottoming in Q4 2016 the economic situation in Egypt is beginning to stabilize,” said

Tim Fox, Head of Research and Chief Economist at Emirates NBD.

“As well as being the strongest overall reading in nine months, particular comfort can be taken from the fact that the new export orders index grew for the first time in nearly two years, which is likely to reflect the positive impact of a weaker exchange rate,” he added.

Output levels reached 46.2 points in April, up from 44 points in March.

“The rate of decrease (in output) eased to the slowest in nine months, but was marked overall. A number of monitored firms attributed the fall in activity to weak underlying demand and unfavourable economic conditions,” said Markit, which compiled the data.

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