BMI View: Following decades of neglect, Angola ' s mining sector has become increasingly open to overseas mining companies and investors as the government looks to accelerate the development of the industry to ease dependence on oil revenues. Recent investment has been focused on the diamond mining sector, where the likes of Australia's Lucapa Diamonds are building partnerships with local and state-owned mining companies. Tentative steps are also being made into other areas, including iron ore and gold mining, though activities in these markets remain at an embryonic stage. While overseas investors face continuing challenges, not least from an infrastructure perspective, we believe that Angola ' s mining sector is well placed for growth over the next few years.
|e/f = BMI estimate/forecast. Source: BMI calculation, World Bank|
|Mining Industry Value, USDbn, % y-o-y||4.00||4.80||5.60||5.80||6.10||6.40||6.70||7.00|
|Mining industry, % of GDP||3.84||3.93||5.65||6.79||5.94||5.57||5.83||5.71|
Latest Updates And Developments
In June 2016, state-owned mining company Empresa Nacional de Ferro de Angola (Ferrangol) announced its target for industrial production to begin at the Limpopo gold mine in Huila province by 2018. The mine is projected to have a final gold ore production capacity of 22,218 ounces per year.
In the same month Australian mining and exploration company Lucapa Diamonds revealed it was considering listing on London's Alternative Investment Market in order to fund its diamond exploration operations in Angola. The company is looking to finance a three-year exploration programme targeting potential diamond deposits in its 3,000sq km concession in Angola's Lulo diamond belt.
In May 2016, Lucapa incorporated the Lulo Diamond Mining Company in partnership with Angola's state-owned mining company, Endiama, and local miner, Rosas e Petalas. The newly formed entity was put in place to develop the Lulo concession, with Lucapa taking a 40% stake in the joint venture, and Endiama and Rosas a 32% and 28% share, respectively.
The Angola Mining Report has been researched at source and features BMI Research's mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's Angola Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Angola.
- Use BMI's independent industry forecasts on Angola to test other views - a key input for successful budgeting and planning in this mining market.
- Target business opportunities and risks in Angola's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Angola.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity), Key Projects Tables and Competitive Landscape Tables.
BMI Industry View
Summary of BMI’s key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the mining sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Mining industry: Industry size (USDmn), real growth (%), % of GDP, employment (‘000), workforce as % of total workforce, average wage (USD).
- Output: Production volumes (‘000 tonnes, carats etc.) for all major metals, minerals, ores and gems mined in each state, including bauxite, copper, gold, coal, lead, silver, tin, titanium, uranium, zinc etc.
- Exports: Value of exports (USDmn) for all major metals, minerals, ores and gems mined in each state.
- Commodity markets: Global demand, supply, stocks and benchmark prices (USD) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.
BMI’s Mining Risk Reward Index
BMI’s Risk Reward Indices provide investors (mining companies and support service providers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing USD sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Mining reports are based on an extensive network of primary sources, such as multilateral organisations (UN, WB, IMF), national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.