BMI View: The Middle East and North Africa (MENA) holds huge potential from a mining investment perspective. However, despite considerable mineral and metals resources, much of the region's mining infrastructure remains under-developed. In many cases this is due to political instability which has restricted foreign investment and mining activity from taking placed on a significant commercial scale. As global energy markets continue to underperform there is an increasing incentive for many MENA states to diversify their economies and to prioritise the development of their mining assets. This is particularly the case in Oman, Saudi Arabia and other Gulf states which remain heavily reliant on oil and gas revenues. Meanwhile, the lifting of sanctions against the Iranian economy is allowing the government to explore ways to harness its vast mineral wealth. In Iran, as in oth er countries, foreign investment will pla y a key role in supporting this development and increasing mineral and metals production, though political instability will remain at the forefront of investors' concerns in many cases.
|e/f = BMI estimate/forecast. Source: USGS, Bloomberg, BMI|
|Egypt||Mining Industry Value, USDbn||10.60||10.80||10.90||11.10||11.20||11.30||11.40|
|Morocco||Mining Industry Value, USDbn||3.80||3.50||3.30||3.30||3.40||3.50||3.50|
|Turkey||Mining Industry Value, USDbn||12.19||10.68||9.50||10.08||10.56||11.16||11.67|
|Iran||Mining Industry Value, USDbn||26.90||20.91||18.44||18.65||19.72||20.80||21.89|
|Saudi Arabia||Mining Industry Value, USDbn||3.02||2.84||2.88||2.91||2.91||2.69||2.38|
Recent Updates And Developments:
Australia's Centamin has raised its production estimates for its Sukari gold mine in Egypt, with output from the project set to grow by 7% in 2016 after a positive first quarter of the year.
In April 2016, Kazakhstan's president announced the signing of a series of bilateral agreements with Iran's government related to metals and mining activity following a state visit to the country.
Iran Mining CEO Abbasali Eqbali Zach reported that mining industry revenues fell by 25% in the year to March 19 2016.
In April 2016, India's National Aluminium Company announced it was considering Oman as a potential location for building new aluminium plants as it looks to expand its overseas production network in strategic regions.
In January 2016, Oman's largest sovereign wealth fund, the State General Reserve Fund announced the launch of Mining Development Oman, a vehicle aimed at providing investors from the private sector with opportunities to invest in the country's mining sector.
Morocco's national company phosphate miner, O ffice C herifien des P hosphates, is planning to expand production of phosphate-enhanced fertiliser to meet increasing global demand.
Saudi Arabia has accelerated discussions with Sudan's government to develop an offshore mining project in Red Sea waters along the two countries' maritime boundary. The Atlantis II project aims to recover zinc, copper, silver and gold, with the deposit estimated to contain 100mn tonnes of ore.
The MENA 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 MENA 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 Iran, Saudi Arabia, Iraq, Turkey, Egypt, Morocco.
- Use BMI's independent industry forecasts on Iran, Saudi Arabia, Iraq, Turkey, Egypt, Morocco to test other views - a key input for successful budgeting and planning in this mining market.
- Target business opportunities and risks in Iran, Saudi Arabia, Iraq, Turkey, Egypt, Morocco's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Iran, Saudi Arabia, Iraq, Turkey, Egypt, Morocco.
- 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.