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Osun, Chinese Firm Collaborate on Gold Mining, Chocolate Factory

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  • Osun, Chinese Firm Collaborate on Gold Mining, Chocolate Factory

The Osun State Government has signed an agreement worth N216bn with a Chinese firm, Jiangsu Wuxi Taihu Cocoa Food Company Limited, for the establishment of an industrial park in the state.

Aregbesola stated that the partnership with the Chinese firm would support the state in six different investments which include cocoa bean processing; chocolate and food processing; salt processing; cassava starch processing, gold mining and power plants.

The total investment by Jiangsu Wuxiý Taihu Cocoa Food Company Limited in the industrial park is put at $600m and the project is expected to begin in January 2018.

A statement made available to our correspondent in Osogbo on Thursday by his Media Adviser, Mr. Sola Fasure, said Governor Rauf Aregbesola during the signing of the agreement in Osogbo agreed that the state government would allocate 200 hectares of land to facilitate the establishment of the industrial park.

The statement read in part, “On November 28, 2017 Jangsu WUXI TAIHU Cocoa Food Co Limited held talks with the State Government of Osun, Nigeria on the investment in the establishment of Industrial Park in Osun State.

“Through full communication and negotiation, both sides reached resolutions which are summarised as follows: “The Osun State Government of Nigeria agrees that Jiangsu Wuxi Taihu Cocoa Food Company Limited will invest to establish the industrial park in Osun State, which will allocate 200 hectares of land for the park.

“The total investment by Jiangsu Wuxiý Taihu Cocoa Food Company Limited in the industrial park is $600m. The first phase of the project includes six projects: Cocoa bean processing; chocolate and food processing; salt processing; cassava starch processing; gold mining and power plants.

“The construction project of Jiangsu Wuxi Tiahu Industrial Park will strictly abide by the relevant laws and regulations of the State Government of Osun and the Federal Republic of Nigeria.

“The government will provide policy guidance for the construction of JiangsuTaihu Wuxi Industrial Park and give support of energy, infrastructure and other aspects. After the completion of the project, favourable tax terms will be given.

“The state government will set up a working group for the construction of Jiangsu Taihu Wuxi Industrial Park, which is responsible for the docking and service with China. The two sides agreed that the project would start in 2018.”

The Osun State Commissioner for Commerce, Industries and Cooperatives, Mr. Ismaila Alagbada, lauded Aregbesola’s commitment to turn Osun State to a commercial hub of the South-West.

He confirmed the progress, which another Chinese investment had made in the cocoa processing industry located at Ede, saying the new partnership on the industrial park would turn around the economy of the state.

The General Manager of Jiangsu Wuxi Taihu Cocoa Food Company Limited, Mr. Liu Jianhui,ý commended the governor for exploring every opportunity to develop the state.

He said the company decided to establish the $600m project in the state, having understudied the economic potential of Osun to grow foreign investments.

Liu Jiangsu assured the state of fruitful partnership that would bring change to the economic activities of the state and create a robust bilateral economic relation between the state and Chinese firm.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

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The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

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Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

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Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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