Business Monitor International


Central Africa Mining Report

Published 05 November 2014

  • 81 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Central Africa Mining Report

Central Africa's mining sector is set to follow much of the continent by developing its substantial mineral wealth. The region is still far from achieving its full potential, but these recent developments could indicate a changing tide for these three countries and indicate that the mining sector is set for sustained lift-off. However, many of the issues that have held back the region from achieving its potential for much of its history remain. Political risk and a lack of adequate infrastructure are the most pressing concerns, and while there are some efforts to address these problems, a lot more needs to be done if the region is not going to be considered 'frontier' for many years to come.

Significant Growth Ahead
DRC - Gold And Copper Output

Substantial Reserves To Be Developed

Like that of much of Sub-Saharan Africa, Central Africa's iron ore mining sector remains at the early stages of development, having lain dormant since the region's independence. In the Democratic Republic of the Congo (DRC), foreign firms have been showing interest in developing the country's considerable resources. With growing interest in Africa's largely untapped iron ore resources, the DRC's considerable deposits of the mineral have fallen under the gaze of international mining firms.

This foreign interest has spread to Cameroon and the Republic of the Congo, which have several huge iron ore projects set to come online over the coming years. Chinese companies have shown an increasing interest in the region and are currently looking for joint ventures, a trend we expect to continue and gather pace.

Key Players

Central Africa's mining sector is fairly well consolidated at present, with only the most intrepid companies venturing there. The most well-developed sector is in the DRC, where global gold miners such as Randgold Resources, AngloGold Ashanti and Minmetals operate. Looking ahead, we expect Central Africa's mining sector to become more fragmented over the coming years as...

Table of Contents

BMI Industry View
7
Substantial Reserves To Be Developed
7
Key Players
8
SWOT
9
Industry Forecast
11
DRC Iron Ore: Joining The Regional Boom
11
Table: Largest Iron Ore Projects
13
China & Infrastructure Present Risks
13
Cameroon Iron Ore: Companies Plough Into Mineral Wealth
15
Table: Cameroon - Key Mining Projects
16
Infrastructure Risks Linger
16
DRC Copper: Strong Growth But Substantial Risks Ahead
17
Higher Grade Deposits Incentivise Investors
18
Table: DRC - Copper Projects
18
Plethora Of Risks Await Investors
19
Table: Copper Production Forecast (Congo (DRC) 2010-2018)
19
DRC Gold: Kibali To Drive Growth
20
Table: Gold Production Forecast (Congo (DRC) 2010-2018)
22
Industry Risk Reward Ratings
23
Central Africa Risk/Reward Ratings
23
Large Rewards On Offer - With Varying Degrees Of Risk
23
Gold Producers Lag The Pack
24
Largest Quarterly Change In South Africa
25
Table: Africa - Mining Risk/Reward Ratings
26
Regulatory Development
27
Congo & Cameroon: Uncertainty, But Signs Of Promise
27
Higher Taxes Round The Corner
28
Table: Africa - Regulatory Outlook
29
Commodities Forecast
30
Commodity Strategy
30
Ferrous Metals:
30
Iron Ore: Price Slump Overdone, Stabilisation In Sight
30
Steel: Price Forecast Revised Up
31
Non-Ferrous Metals:
33
Aluminium: Recent Break Signals Multi-Month Strength
33
Copper: Subdued Prices Into Q314
34
Lead: Prices To Strengthen As Deficit Deepens
35
Nickel: H214 Rally Unlikely
36
Tin: More Resilient Than Other Metals
37
Zinc: Sustained Break Unlikely
39
Table: Select Commodities - Performance & BMI Forecasts
41
Competitive Landscape
42
Company Profile
44
MMG Limited - Q4 2014
44
Table: MMG Ltd - Supply Chain Analysis
48
Table: MMG Limited - Key Financial Data
49
Randgold Resources
50
Table: Randgold Resources - Key Financial Data
53
Regional Overview
54
Chinese Quest For Minerals Undeterred
54
Table: Select Projects - Chinese Mining Investment In Africa
54
Look To West Africa For Rapid Growth
55
Tin Mining To Make A Comeback
56
Flurry Of Investment Into Southern African Coal
57
Changing Landscape For Precious Metals
58
Risks & Opportunities In Infrastructure
60
Global Industry Overview
62
Capex Cutbacks To Yield Rewards
62
M&A Activity To Pick Up
63
High Grade Opportunities In Iron Ore
64
Shifting Centre Of Growth For Platinum
65
Chinese & Indian Outbound Mineral Investment To Gather Pace
66
Shake-Up For Global Rare Earths Industry
67
Methodology
69
Industry Forecast Methodology
69
Sources
70
Risk/Reward Rating Methodology
71
Table: Weighting Of Indicators
73

The Central Africa 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 Central Africa 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 Cameroon, Congo, Congo, Dem. Rep..

Key Benefits

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

Business Environment Rankings

BMI's Mining Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (mining companies and support service providers) in the regional mining market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry rankings 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-2018 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-2018 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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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc