Zimbabwe Mining Report

Providing expert analysis, independent forecasts and competitive intelligence on the mining.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Petrochemicals Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

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Zimbabwe Mining Report
Product Price
$1,295.00

BMI View: Zimbabwe's mining industry will grow steadily in absolute terms over our forecast period through to 2020 as production increases across the key platinum and diamond mining sub-sectors. However, we note a number of potential downside risks on the horizon, including falling mineral prices and an uncertain political and regulatory climate.

Zimbabwe Mining Industry Value
2013 2014 2015e 2016f 2017f 2018f 2019f
e/f = BMI estimate/forecast. Source: UN Data, BMI
Mining Industry Value, USDbn 1.18 1.12 1.05 1.03 1.07 1.11 1.12
Mining Industry Value, USDbn, % y-o-y -1.38 -5.73 -5.70 -1.74 3.13 3.69 1.38

Latest Developments & Structural Trends

  • Zimbabwe is richly endowed with deposits of chrome, gold, nickel, diamonds and platinum, among other minerals. Its gold reserves are among the largest in Africa, while it has the world's second-largest platinum reserves. Diamond reserves are measured to be the second-largest globally after Russia. Development in these key markets together with a gradual more stable political and economic climate has seen the country's status as major global producers strengthen in recent years. In terms of overall output, Zimbabwe is challenging the world's largest platinum producers, Russia and South Africa, while a recent reduction in taxes for smaller gold miners will see production rise at almost a double-digit rate this year.

  • The mining sector will nevertheless face increasing challenges to its current growth trend, however. Political and economic risk remains a particular concern from both a regulatory and investment point of view and the ZANU-PF will continue to spell trouble for the future of the industry.

  • The changing regulatory environment surrounding Zimbabwe's diamond mining industry is likely to create challenges as well as opportunities for diamond production over the next few years.

  • In terms of challenges, on February 22, 2016, the Zimbabwean government has ordered all diamond mining firms in the Marange diamond fields to halt operations and vacate their premises within 90 days, stating that their licences and special grants have expired. The announcement follows months of wrangling between the mining companies and the government over its plans to merge the mines into a single entity, under which the state-owned Zimbabwe Consolidated Diamond Company will own 51%. The diamond fields in the east of Zimbabwe near Mozambique are currently mined by Anjin, DMC, Jinan, Mbada, DTZ OZGEO, Rera, Gye- Nyame, Kusena and state-owned Marange Resources (see regulatory development section for more insight).

  • Zimbabwe is posed to challenge Russia and South Africa as the world's leading platinum producer over the coming years as new investment by both existing and new players allows the country to capitalise on its considerable reserves, which are the second largest in the world. Coincidentally, the country will see its status lifted by slowing production growth in neighbouring South Africa, where serious difficulties as a consequence of labour unrest and high energy costs will mean that the world's largest platinum producer will experience major difficulties in maintaining production levels.

  • We forecast output growth to expand by 4.0% annually during 2016-2020, with output growing from 0.61mn ounces in 2016 to 0.70moz by 2020. Despite this growth trend, Zimbabwe will remain a relatively minor gold producer on a regional level, with the majority of production continuing to come from artisanal and small-scale producers. At present, the country is significantly behind Africa's largest gold producers, South Africa, Ghana and the DRC in terms of its total output.

BMI Industry View
7
Table: Zimbabwe Mining Industry Value
7
Latest Developments & Structural Trends
7
SWOT
9
Industry Forecast
11
Platinum: Output To Head Higher
11
Latest Developments
11
Table: Platinum Production (Zimbabwe 2014-2020)
11
Table: Zimbabwe - Major Platinum Projects
11
Structural Trends
12
Refinery Decision Finally Made
13
Gold: Smaller Miners To Boost Production
15
Latest Developments
15
Table: Gold Production Forecast (Zimbabwe 2012-2020)
15
Table: Key Gold Projects In Zimbabwe
15
Structural Trends
16
Diamonds: Significant Growth Potential, Despite Unfavourable Environment
18
Latest Developments
18
Table: Diamond Production (Zimbabwe 2012-2020)
18
Structural Trends
19
Industry Risk Reward Ratings
21
Zimbabwe - Risk/Reward Index
21
Rewards
21
Industry Rewards
21
Country Rewards
21
Risks
21
Industry Risks
21
Country Risks
21
Risk/Reward Index
22
Key Takeaways
22
Latest Revisions
23
Table: Africa - Mining Risk/Reward Index
25
Regulatory Development
26
Regulatory Underperformance
26
Commodities Forecast
28
Commodities Outlook
28
Table: BMI Commodities Price Forecasts
28
Competitive Landscape
29
Table: Southern Africa - Largest Listed Mining Companies
30
Company Profile
31
African Consolidated Resources
31
Global Company Strategy - Impala Platinum - Q1 2016
33
Table: Impala Platinum - Key Financial Data
38
Regional Overview
40
Table: SSA - Government Involvement In Mining Sector
45
Methodology
47
Industry Forecast Methodology
47
Sources
48
Risk/Reward Index Methodology
49
Table: Weighting Of Indicators
50

The Zimbabwe 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 Zimbabwe 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 Zimbabwe.

Key Benefits

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