BMI View: Despite a challenging outlook for commodities internationally, we are looking for Angola's mining sector to continue growing at a steady pace through the next few years as the government looks to mineral extraction as a means of diversifying the economy and easing its reliance on oil and gas exports. Diamonds will remain the mainstay of the industry, with state-owned mining company currently increasing production to mitigate recent price falls. A lack of sufficient mining-related infrastructure remains an ongoing obstacle to mining activity in the country and the government is looking increasingly to source much-needed investment by exploring partnerships overseas. We expect this to be a long-running theme which should create opportunities for investors and new entrants over the next few years.
|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||4.59||4.83||6.26||6.72||6.44||5.83||5.97||5.84|
Latest Updates And Developments
We have revised our estimations for diamond output upwards for 2015 following the recent release of provisional production data by Angola's Ministry of Geology and Mining. Angola's diamond production is, therefore, estimated to have grown by 5.6% in 2015 to 9.3mn carats. This increased level of output reflect recent contraction in Angola's diamond export revenues, which are estimated to have shrunk to USD1.1bn in 2015 due to a fall in global prices.
We are looking for mined diamond output to continue growing at a solid rate through the forecast period; we forecast production to increase by 4.1% in 2016 and to expand by 4.6% a year on average over 2016-2020.
We maintain our view that Angola's mining sector is well placed to expand over the next few years as the government looks to promote the diversification of Angola's economy. Further talks between the Angolan and Chinese governments in December 2015 illustrate the increased role that foreign investors are likely to play in developing the country's mineral deposits.
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.