Central Africa Mining Report

Published 20 July 2015

  • 79 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
Central Africa Mining Report

BMI View: Central Africa is starting to leverage its considerable mineral wealth as mining activity expands across the region, in countries such as the DRC, Congo-Brazzaville and Cameroon. The region's considerable and largely untapped deposits and high grades are an attractive proposition for international mining group, particularly as other locations suffer falling grades and higher operating costs. We see significant potential for growth in the extraction of copper, gold, iron ore and other minerals, however, political risks and a lack of adequate infrastructure continue to present considerable challenges to operators in the region.

Striking While the Iron (Or Copper) Is Hot
DRC - Gold And Copper Output
e/f= BMI estimate/forecast. Source: BMI Calculation, USGS

A New Stage For Metals Production

As is the case throughout much of Sub-Saharan Africa, much of the mining sector in Central Africa is at an embryonic stage of development. We highlight the region's fledgling iron ore sector which is concentrated in the Democratic Republic of the Congo (DRC), Congo-Brazzaville and Cameroon. The high-quality grades and considerable reserves of these countries provide an advantage to miners willing to overlook the sizeable political risks and infrastructure constraints of these countries, particularly given the current low-price environment for iron ore and other commodities. While much of the early investment into these markets has come from Western investors, many of these hailing from Australia, the UK and North America, there is growing interest from Asian companies, including those from China and South Korea, as they look to secure long-term access to iron ore supplies.

Besides iron ore, we note significant development in the gold and copper mining sub-sectors, both of which centre predominantly on the DRC. Again, the growth of these industries will depend on the ability of miners to overcome considerable infrastructure constraints as well as high levels of...

BMI Industry View
7
Substantial Reserves To Be Developed
7
SWOT
9
Industry Forecast
11
Iron Ore: Regional Boom, But Problems Persist
11
Table: Largest Iron Ore Projects
13
China & Infrastructure Present Risks
13
Cameroon Iron Ore: Infrastructure To Hold Back Mining Boom
15
Table: Cameroon - Key Mining Projects
17
Infrastructure Risks Linger
17
DRC Conflict Minerals And The Dodd-Frank Act - Crib Sheet
18
Core View: Conflict Mineral Regulations Pose Minimal Risk To Sector
18
What Are Conflict Minerals-
19
What Does The Dodd-Frank Act Stipulate Regarding Conflict Minerals-
20
Which Companies Are Affected By The Act-
20
What Is The Aim Of The US Government In Implementing This-
20
Are These Efforts Likely To Succeed-
21
Would A Significant Crackdown On Conflict Mineral Exports Harm The DRC's Economy-
21
DRC's Gold Shines Bright
22
Table: Gold Production Forecast (Congo (DRC) 2012-2018)
24
Industry Risk Reward Ratings
25
Africa Risk/Reward Index
25
Large Rewards Matched By High Risks
25
West African Countries Trend Lower
26
Table: Africa - Mining Risk/Reward Index
27
Regulatory Development
28
Congo & Cameroon: Uncertainty, But Signs Of Promise
28
Higher Taxes Round The Corner
29
Table: Africa - Regulatory Outlook
30
Commodities Forecast
31
Commodity Strategy
31
Ferrous Metals
31
Non-Ferrous Metals
33
Aluminium: Ending 2014 On A Whimper
33
Copper: More Weakness Ahead
35
Nickel: Modest Rebound To Be Limited By Ample Supply
37
Zinc: Sideways Trading On Diverging Supply & Demand Dynamics
38
Table: Select Commodities - Performance & BMI Forecasts
39
Competitive Landscape
41
Company Profile
43
Randgold Resources
43
Table: Randgold Resources - Key Financial Data
47
MMG Limited - Q115
48
Table: MMG Ltd - Supply Chain Analysis
51
Table: MMG Limited - Key Financial Data
52
Regional Overview
53
Regional Overview - Four Key Themes For 2015: Africa Mining
53
Gold To Retreat; Except In The DRC
53
West African Iron Ore On The Rocks
54
Job Cuts & Greater Mechanisation
55
Mining To Remain A Crucial Contributor To African GDP
56
Global Industry Overview
58
Global Overview
58
2
61
3
62
5
66
Methodology
68
Industry Forecast Methodology
68
Sources
69
Risk/Reward Index Methodology
70
Table: Weighting Of Indicators
71

The Central Africa Mining Report has been researched at source and features Business Monitor International (BMI)'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 Central Africa 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 Cameroon, Congo, Congo, Dem. Rep..

Key Benefits

  • Use BMI's independent industry forecasts on Cameroon, Congo, Congo, Dem. Rep. to test other views - a key input for successful budgeting and planning in this mining market.
  • Target business opportunities and risks in Cameroon, Congo, Congo, Dem. Rep.'s mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Cameroon, Congo, Congo, Dem. Rep..
  • 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.

Coverage

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.

Key Projects

Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.

Company Profiles*

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.

Sources

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.

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