Business Monitor International


Angola Mining Report

Published 01 May 2014

  • 64 pages
 
$1,295.00
Angola Mining Report

Angola's mining industry is set to reach USD7.5bn in 2018, growing at an average rate of 5.3% a year. The rate of growth will remain stable thereafter, with diamonds providing the main thrust for production growth over the medium term. New areas of mining, including iron ore, copper and phosphates, are also receiving increasing international interest from investors and are expected to provide further momentum for Angola's mining sector over the long term. That said, we do not expect the mining sector to receive much attention from the government as the country's burgeoning oil sector attracts the lion's share of investment. Therefore, problems relating to mining such as poor infrastructure and stringent bureaucracy are unlikely to be resolved in the near term.

Prospecting To Begin In Kwanza Sul

In 2013, Angola-based diamond miner Sociedade Mineira de Catoca (SMC) was awarded the rights to carry out prospecting for diamonds in the province of Kwanza Sul. The announcement followed the completion of surveying work by SMC in the mining zones of Gango and Quitúbia, both of which encompass a concession area of 3,000km sq. The company installed equipment for prospecting in the area in Q313 in addition to carrying out demining and geological analysis of the region. The project will be the first diamond mining enterprise in Kwanza Sul province and is the culmination of ongoing attempts to launch exploration projects at Gango and Quitúbia since 2001. This and other projects will ensure that diamonds dominate Angola's mining sector for the foreseeable future.

Mining To Lag Oil
Angola - Sectors By Value (USDbn)

Regulatory Environment To Boost Investment

Operators in Angola's mining sector are starting to reap the benefits of a new mining code, whose long-awaited introduction came into effect at the end of 2011. In compiling all existing mining laws and regulations, it is hoped that the new code will ensure greater cohesion in the country's natural resources sector than the...

Table of Contents

BMI Industry View
7
SWOT
9
Industry Forecast
10
Diamonds: Growing Investment To Drive Output Growth
10
Further Upside To Production Forecasts
11
Table: Angola - Diamond Production (mn carats, unless stated otherwise)
11
Industry Risk Reward Ratings
12
Risk/Reward Ratings
12
Botswana On Top
13
Table: Africa - Mining Risk/Reward Ratings
14
South Africa: Still Ranking Highly
14
Lower Gold Prices Reduce Rewards
15
Risk/Reward Ratings
17
Rewards
17
Risks
18
Table: Angola - Mining Industry Value
19
Regulatory Development
20
Table: Angola Political Overview
22
Commodities Forecast
23
Commodity Strategy
23
Iron Ore: Fading Iron Will
23
Steel: Global Glut To Weigh On Prices
25
Aluminium: Fundamentals To Remain Weak
26
Copper: All Eyes On China
27
Lead: Outperforming Its Troubled Peers
28
Nickel: Monthly Outperformer
30
Tin: Outperforming A Weak Field
31
Zinc: Further Consolidation Likely
32
Table: Select Commodities - Performance & BMI Forecasts
34
Competitive Landscape
35
Company Profile
37
Endiama
37
Regional Overview
39
Mining - Africa Overview
39
Key Opportunities
39
1
39
2
41
3
42
Key Challenges
43
1
43
2
44
3
45
Table: Africa - Key Mining Regulatory Developments
46
Global Industry Overview
48
Challenges
48
Table: Mining - Select M&A Deals
52
Cause For Optimism
55
Methodology
62
Industry Forecast Methodology
62
Sources
63
Risk/Reward Rating Methodology
64
Table: Weighting Of Indicators
66

The Angola 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 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.

Key Benefits

  • 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.

Coverage

Executive Summary

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.

Business Environment Ratings

BMI's Mining Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (mining companies and support service providers) in the regional mining market. The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.

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.

BMI Industry Forecasts

Historic data series (2009-2012) and forecasts to end-2017 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast. Indicators include:

  • Mining Industry: Industry size (US$mn), real growth (%), % of GDP, employment ('000), workforce as % of total workforce, average wage (US$).
  • 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 (US$mn) for all major metals, minerals, ores and gems mined in each state .
  • Commodity Markets: Global demand, supply, stocks and benchmark prices (US$) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.

BMI Macroeconomic Forecasts

BMI forecasts to end-2017 for all headline macroeconomic indicators, including real GDP growth (%), inflation (%), fiscal balance (% of GDP), trade balance (US$bn), current account (US$bn) and external debt (US$bn).

Competitive Landscape Tables & Analysis

Comparative company analyses and tables detailing by US$ sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.

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.

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