SEATTLE (Scrap Monster): A recent report released by the Economist Intelligence Unit states that the severe-than expected sanctions against Russia is unlikely to have serious impacts on Africa’s domestic mining sector. However, it may lead to disruption of Russian mining activities in Sub-Saharan Africa.
The sanctions will create manageable downside risks in the form of temporary disruptions to projects, whose stakes are owned by Russian miners. The Russian joint venture mining operations may face monetary disruption to mining operations and output levels, as they rely in part on Russian financing. However, the high prevailing price of most commodities will ensure that there is no shortage of buyers in the market.
Meantime, the sanctions are likely to limit the ability of Russian miners to repatriate profits, the report noted.
With Russia getting increasingly cut-off from the West, the country is more likely to seek allies and secure additional mining concessions in resource-rich African countries, by tapping the instability in the region.
The Russia-Ukraine conflict will drive price growth for commodities during 2022, with aluminum prices expected to touch $3,213/tonne, copper prices to $4.54/lb and nickel prices to $10.52/lb. Also, gold prices are expected to see a big jump from $1,800/troy oz in 2021 to $1,897/troy oz in 2022.