Barricks Gold Corporation Gets Zambian Governmnet Nod For Equinox Takeover

By Mutale Kapekele

The government has given Barrick Gold Corporation of Canada unconditional clearance to take over Equinox Minerals, the parent company of Lumwana Mines.

Originally the ZAMBIA Competition and Consumer Protection Commission (ZCCPC) approved the purchase of Lumwana Copper Mine by Barrick Gold Corp on condition that the mining giant honours the subsisting agreements that the Mines had entered into with the local smelter, local suppliers to the mine and other third line industries.
The ZCCPC also demanded that Barrick Gold Corp should ensure that no job loses occur as a result of the transaction.
The Commission further demanded that Barrick Gold Corporation will not buy the 2.2 per cent shares in Equinox held by Zambia Consolidated Copper Mines – Investment Holdings (ZCCM-IH).

But in a statement yesterday Equinox confirmed that the government through ZCCPC has given unconditional clearance to Barrick Gold Corp.“Equinox acknowledges that Barrick has received Zambian clearance for the acquisition of Equinox. All regulatory approvals are now received. Barrick has received the unconditional approval of the Zambian Competition and Consumer Protection Commission for the proposed acquisition of the outstanding common shares of Equinox by way of takeover bid,”Equinox stated. “All required regulatory approvals for the offer have now been received and Equinox encourages shareholders to tender into the offer, which is open for acceptance until 5:00 p.m. (Toronto time) on June

1, 2011, unless the Offer is extended or withdrawn.”

On April 25, 2011, Equinox announced an agreement with Barrick Gold Corporation pursuant to which Barrick has agreed, subject to the terms of a support agreement, to make the Offer to purchase all outstanding common shares of Equinox by way of negotiated take-over bid at a price of C$8.15 per share in cash. Barrick subsequently commenced the offer on April 26, 2011.

The Equinox board of directors has unanimously recommended that their shareholders accept the offer, and deposit their

Shares under the offer.

Maize marketing in Zambia

Maize marketing in Zambia

So, Zambia has another bumper harvest!

The Minister of Agriculture Eustacio Kazonga has announced a three million metric tonnes 2010/2011 harvest.

Zambia consumes approximately one million metric tonnes annually and the rest is exported to Zimbabwe, Kenya, Congo DR and Namibia.

The Zambian government has promised to buy all the maize from small scale farmers at US$265 per metric tonnes. This is good for the farmers but what I find strange is the fact that Zambia will export the same maize bought at high cost from the farmers at US180 per tonne.

Even the riches country in the world could never be this generous. My question is where is the excess money going to come from?

As it is, Zambia is still paying back money it owed a consortium of banks for last year’s maize marketing season.

What is more irritating is that the government has introduced mealie meal subsidies which means millers in the country will get the maize at a subsidised price and yet the small farmer is hoping to sell the same maize at an economic price. Which miller will buy from the farmer when they could get a better deal from the government?

What the government does not realize is that they are killing the small scale farmers indirectly when they are supposed to be helping.

If the government was serious about growing the agriculture sector, the best they can do is to subsidise production and not the already too-rich-to-care millers.

This is a scandal!!!!!