BMI View: Tanzania's mining industry will come under pressure over our forecast period to 2018 . This will largely be a result of weakness in global gold prices disincentivizing production growth. Although gold is the current mainstay of the sector , there are plans to diversify into nickel , coal and uranium production in the long term . The mining industry is relatively small in terms of value, but its importance is highlighted by the fact that mining earns a significant share of the country's export revenues. Majo r foreign investors in Tanzania's mining sector include Acacia Mining , (formerly African Barrick Gold) and AngloGold Ashanti .
Tanzania is home to significant deposits of coal, cobalt, copper, diamonds, gold, nickel, silver and uranium. The country has long been a producer of gold (and is currently Africa's fourth-largest producer) and diamonds. In the long term we also expect coal, nickel and uranium production to become sub-sectors of Tanzania's mining sector. However, over our forecast period to 2018, weak commodity prices will precipitate stagnant gold production growth and are likely to delay potential new projects.
| Lower Gold Prices To Hit Industry Value |
|Tanzania: Gold Production & Mining Industry Value|
We expect Tanzania's mining sector to remain relatively uncompetitive as high taxes and royalties weigh on mining companies. The mining code, updated in 2010 at the height of the commodities price boom, is relatively more burdensome than the mining codes of the bulk of other African countries. As such, Tanzania is likely to find itself at a competitive disadvantage as mining companies look to slash capital expenditure in an era of weakening commodity prices.
On the positive side, the announcement in September 2014 that construction of a coal and iron ore mine plus a 600MW coal-fired power plant will begin next year in Tanzania provides a much-needed boost to the outlook for the mining sector. Capital expenditure on the new...
The Tanzania 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 Tanzania 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 Tanzania.
- Use BMI's independent industry forecasts on Tanzania to test other views - a key input for successful budgeting and planning in this mining market.
- Target business opportunities and risks in Tanzania's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Tanzania.
- 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.