Business Monitor International


Angola Mining Report

Published 15 August 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 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 original code that was introduced in 1992. The new legislation will apply to all aspects of the prospecting, exploration, research, appraisal...

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: Diamond Production (Angola 2010-2018)
12
Industry Risk Reward Ratings
13
Africa Risk/Reward Ratings
13
Large Rewards On Offer - With Varying Degrees Of Risk
13
Gold Producers Lag The Pack
14
Largest Quarterly Change In South Africa
15
Table: Africa - Mining Risk/Reward Ratings
16
Risk/Reward Ratings
16
Rewards
16
Risks
17
Table: Mining Industry Forecasts (Angola 2010-2018)
18
Regulatory Development
19
Table: Angola Political Overview
21
Commodities Forecast
22
Commodity Strategy
22
Ferrous Metals:
22
Iron Ore: Price Slump Overdone, Stabilisation In Sight
22
Steel: Price Forecast Revised Up
23
Non-Ferrous Metals:
25
Aluminium: Recent Break Signals Multi-Month Strength
25
Copper: Subdued Prices Into Q314
26
Lead: Prices To Strengthen As Deficit Deepens
27
Nickel: H214 Rally Unlikely
28
Tin: More Resilient Than Other Metals
29
Zinc: Sustained Break Unlikely
31
Table: Select Commodities - Performance & BMI Forecasts
33
Competitive Landscape
34
Company Profile
36
Endiama
36
Regional Overview
38
Chinese Quest For Minerals Undeterred
38
Table: Select Projects - Chinese Mining Investment In Africa
38
Look To West Africa For Rapid Growth
39
Tin Mining To Make A Comeback
40
Flurry Of Investment Into Southern African Coal
41
Changing Landscape For Precious Metals
42
Risks & Opportunities In Infrastructure
44
Global Industry Overview
46
Capex Cutbacks To Yield Rewards
46
M&A Activity To Pick Up
47
High Grade Opportunities In Iron Ore
48
Shifting Centre Of Growth For Platinum
49
Chinese & Indian Outbound Mineral Investment To Gather Pace
50
Shake-Up For Global Rare Earths Industry
51
Methodology
53
Industry Forecast Methodology
53
Sources
54
Risk/Reward Rating Methodology
55
Table: Weighting Of Indicators
57

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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