South African factory mood improves slightly but is still depressed, survey shows
The seasonally-adjusted purchasing managers' index (PMI) sponsored by South African bank Absa rose to 48.5 points in June from 43.1 in May.
The PMI has now been below 50 for eight consecutive months, reflecting decreased manufacturing activity in Africa's most industrialised economy.
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Reuters
16 minutes ago
- Reuters
Exclusive: France's Orano says its Niger uranium mine on verge of bankruptcy
DAKAR, July 2 (Reuters) - French uranium miner Orano said on Wednesday its majority-owned joint venture with Niger, SOMAIR, is on the verge of bankruptcy as a result of export restrictions imposed by Niger's military government. Orano was forced to suspend production at SOMAIR after authorities halted exports last year. Niger's government seized the operation in December and announced plans to nationalize it last month, joining a wave of West African governments seeking greater control of natural resources from foreign companies. Niger, which also exports gold and coal, is the world's seventh-largest uranium producer. The country accounted for about 15% of Orano's uranium supply when its local unit operated at full capacity. Orano told Reuters in emailed responses to questions that it had been flagging SOMAIR's worsening financial position since October as its year-long dispute with the West African nation escalated. "The Nigerien authorities' insistence on continuing production expenses at any cost has led to the current situation where the SOMAIR company is on the verge of bankruptcy," Orano said. Niger's Ministry of Mines did not immediately respond to a request for comment on Orano's assessment of the unit's financial position. In its decision to nationalise the mine, the junta, which seized power in 2023, said Orano had been extracting 86.3% of uranium production since 1971 despite holding a 63% stake in the mine. The country's main mineworkers union, which said production will continue at the mine, said Orano had carried out acts of sabotage, adding Niger's uranium exploitation had not fairly benefited the country. Orano denies the accusations. Orano said Niger's state-owned partner SOPAMIN had engaged in opportunistic behavior by refusing to take its share of production during low uranium price cycles to avoid losses. "The State of Niger did not always exercise its offtake rights for several periods... particularly in low uranium price cycles", forcing Orano to purchase additional uranium above its shareholding to keep the mine financially viable, the company said. Orano said it wanted the venture's remaining financial resources to be used to pay employees' salaries and to maintain industrial facilities. Uranium spot prices are up 7% so far this year, having hit a seven-month high of $79 a pound last week. The company, which said it reserves the right to legal action, did not specify its next steps as Niger moves forward with nationalization plans. Neighbouring military-ruled Mali has also put Barrick's ( opens new tab Loulo-Gounkoto gold complex under state control, while Burkina Faso and Guinea have pressed Western miners for greater mining share while pivoting to Russian interests.
BBC News
17 minutes ago
- BBC News
Alexander Dennis extends deadline to save under-threat bus jobs
The bus builder Alexander Dennis (ADL) is to allow more time for efforts to save the jobs of workers in Falkirk and Larbert.A consultation on its plans to end manufacturing in Scotland, which would result in the loss of 400 jobs, will now run for an extra means the new deadline is 15 the Scottish government said officials had met the company to discuss the possibility of a furlough scheme. Alexander Dennis last month announced plans to stop manufacturing in central Scotland. Instead it is proposing to centralise bus building in union Unite had called on the company to extend the mandatory consultation period to allow more time to try to save the Scottish Thomson, the union's Scottish secretary, welcomed the said: "Unite was pushing hard for this extension because it buys more time for proposals to be brought forward which can help secure immediate and long-term orders. "We continue to work with Alexander Dennis and the Scottish government to explore viable options which can retain the skilled workforce at Falkirk and Larbert, including the use of a time-limited furlough scheme supported by government."Staff are currently on a two-week annual break linked to the local holiday in Scottish government said efforts to try to find a solution would continue. Furlough talks In a letter to Holyrood's Economy and Fair Work Committee, Finance Secretary Shona Robison mentioned a time-limited furlough scheme. The aim would be to avoid redundancies before work on new orders confirmed officials had met ADL to discuss a potential company furlough given the green light it would be the business' offer to its employees to prevent compulsory redundancies among the manufacturing scheme would be administered by the said: "We are in discussions with ADL on the potential for the government to support the company's scheme for a defined period."Robison said officials from both the Scottish and UK governments were continuing to meet regularly to discuss the situation. Last week the firm's managing director, Paul Davies, told a Holyrood committee it would need to win orders for at least 70 new buses this year before it could keep its Scottish sites Davies said the company would then need to win 300 additional orders next he warned this alone might not be enough to keep the Falkirk and Larbert operations Scarborough operation has the capacity to produce around 1,200 buses a Davies was asked what it would take to keep production in told the committee the issue was demand and that the company did not have sufficient volume in the order book to sustain two manufacturing sites in the was then asked if the company could give an absolute commitment to keep Falkirk and Larbert open if it secured a sufficient number of new Davies could not give this and said there were wider implications for the company to consider. The extension to the consultation period provides a little breathing space and adds to the possibility the jobs will be it is far too early for anyone fighting to save the jobs to solution will be complex. It is likely to involve the company, unions and both the Scottish and UK particular Alexander Dennis will need to see a pipeline of work big enough to justify both the Scottish and Scarborough operations.A furlough scheme only becomes a realistic proposition if it might bridge a short gap - perhaps three months - until work on new orders begins. Any such scheme would not be designed to run indefinitely.
Reuters
37 minutes ago
- Reuters
Nigeria needs to recalibrate its budget for lower oil prices, says IMF
LONDON, July 2 (Reuters) - Nigeria needs to adapt its 2025 budget to lower oil prices and scale up cash transfers to shield the most vulnerable parts of its population, the International Monetary Fund said on Wednesday. Releasing the results of its routine "Article IV" assessment of Nigeria's economic policies, the IMF said economic growth had been steady but too low in per capita terms with inflation remaining high. The Fund predicted that the country's economy would expand at 3.4% this year and 3.2% in 2026. "The international economic environment that Nigeria lives in and operates in is marked by the very, very large uncertainty, and in particular, international oil price volatility impacts Nigeria directly through the fiscal and the external balances as well as inflation," said Axel Schimmelpfennig, the Fund's mission chief for Nigeria. The complex outlook made it more important than ever for policymakers to build and maintain buffers while being nimble and ready to respond to shocks or seize opportunities, he said. "Turning to our policy messages, the key challenge now is to tackle high poverty and food insecurity." Africa's largest oil exporter had assumed a price of $75 per barrel in its 2025 budget. Brent crude futures last traded at just over $68 a barrel.
