The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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It looks as though certain quarters in the US are concerned that Abu Dhabi may already (in its eyes) be in the Chinese camp :
from today's Spectator
.."US officials scrutinised an Abu Dhabi sovereign wealth fund’s planned $3bn takeover of New York-based Fortress Investment Group over concerns about UAE ties to China..."
Wait until the UAE (and Saudi...and one or two other areas of influence) signs up for BRICS...and the South/south shift gathers momentum.
Key comment in the Annual Report.
Missed by the market but directly implies mineral port development by AD Ports:
Clifford Elphick, Non-Executive Chairman of ZIOC, commented:
...
Furthermore, port infrastructure discussions are underway with a large port infrastructure development firm seeking to expand the existing port of Pointe-Noire. Consideration is also being given to potential development solutions for a large bulk mineral port capable of supporting the 30Mtpa staged development project.
Following that July 3rd RNS, AD Ports have announced a 'recently' signed MoU with Chinese EPC firm CMEC thus:
“We are looking forward to working with CMEC Group to explore potential opportunities globally (incl. Africa). Our Group is committed to achieving the complementary advantages of both parties and this MoU demonstrates our strategic objectives to establishing global partnerships with leading companies, such as CMEC GROUP, that will expand our reach and share our expertise. In line with the vision of our wise leadership, this will enable us to accelerate the delivery of our ambitious projects and drive economic growth in our region and beyond.”
https://www.adportsgroup.com/en/news-and-media/2023/07/20/ad-ports-group-and-china-machinery-engineering-group-corporation-sign-memorandum-of-understanding
CMEC once held the Belinga concession on the Congo-Gabon border - (now being delivered by FMG). CMEC intended to deliver the entire project, from port to mine and including hydropower. CMEC are delivering the rail infrastructure for the Mbalam iron ore project on the Cameroon-Congo border.
Hi alwayshoping!
I've had to develop my thinking. This news has got very little airtime and I think it is of some significance: AD Ports have 'recently' signed a 'strategic cooperation agreement' with CMEC - as per this thread.
CMEC had the Belinga concession (and intended to develop everything from port to mine and incl. hydropower) and are now doing the infrastructure on the Mbalam iron ore mine in Cameroon. Of course FMG are now doing Belinga and there is some evidence that CMEC are involved there again.
With the arrival of CMEC, AD Ports now have agreements all the way from mine to end user.
Additionally I've now got myself together on the competition between Saudi Arabia and the UAE and now reckon both could be working on a bid. I've yet to post my research on the Saudi links.
AD Ports have now put in place all the components needed to develop Zanaga. CMEC could be the last link in the chain from mine to off-take:
Mining > power > infrastructure > ports > shipping (VLOCs) > Demand from green steel hubs
The final link is finance. Given that AD Ports are majority owned by ADQ, the Abu Dhabi SWF tasked with diversification investments, finance won't be a problem - besides the agreements below imply that finance is agreed in principle.
Mining and Infrastructure
Last week they revealed a *strategic cooperation agreement* with CMEC, the state directed firm who previously had the Belinga iron ore concession (now being developed by FMG), and who are now involved with the Mbalam development - on the Congo-Gabon and Congo-Cameroon borders. on LinkedIn CMEC describe the specialities as 'Hydropower and EPC'.
Pointe Noire ports
Last month AD Ports signed the concession agreement with Congo for the new mole port at Pointe Noire - perfect for the import of mining equipment and then export of DSO from any Zanaga EPP. Furthermore the President's son also detailed how the $500m port was but the first phase of ports (plural) to Pointe Indienne, i.e. a new mineral port.
Shipping: Vale and VLOCs
End of May and AD Ports and Vale sign an agreement to build a 'low carbon steel mega hub' in Abu Dhabi. The agreement also detailed the intention to own and manage VLOCs - the very large ore carriers needed to transport ore to the Gulf. The key point is that Vale already have the VLOCs needed for their current operations, therefore these VLOCs must be for a new project.
Offtaker Demand
Last week AD Ports signed with Emirates Steel Arkan, Itochu, and JFE Steel ‘to collaborate on activities related to the establishment of an integrated low-carbon iron supply chain complex in Abu Dhabi.' There's the demand, alongside the similar green steel hubs underway in Saudi Arabia and Oman.