Business Monitor International


Tanzania Mining Report

Published 02 October 2014

  • 67 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Tanzania Mining Report

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...

Table of Contents

BMI Industry View
7
Table: Tanzania - Key Mining Projects
8
SWOT
9
Industry Forecast
10
Gold: Slow Growth As Prices Weaken
10
Table: Gold Production Forecast (Tanzania 2010-2018)
12
Industry Risk Reward Ratings
13
Tanzania Risk Reward Ratings
13
Rewards
13
Industry Rewards
13
Country Rewards
13
Risks
14
Industry Risks
14
Country Risks
14
Table: Mining Industry Forecasts (Tanzania 2010-2018)
15
Africa Risk/Reward Ratings
15
Large Rewards On Offer - With Varying Degrees Of Risk
15
Gold Producers Lag The Pack
16
Largest Quarterly Change In South Africa
17
Table: Africa - Mining Risk/Reward Ratings
18
Regulatory Development
19
Tax Regime
20
Corruption Concerns To Continue
21
Table: Political Overview
22
Table: Africa - Regulatory Outlook
23
Commodities Forecast
25
Commodity Strategy
25
Ferrous Metals:
25
Steel: Prices To Remain Subdued
27
Non-Ferrous Metals:
28
Aluminium: Price Strength To Continue In Q314
28
Copper: Further Decline By Year's End
29
Lead: Constructive Price Outlook
30
Nickel: Moderation To Continue
31
Tin: Upside Ahead
32
Zinc: Consolidation Before Multi-Year Gains
34
Table: Select Commodities - Performance & BMI Forecasts
36
Competitive Landscape
37
Table: Tanzania - Main Mining Companies
38
Company Profile
39
Barrick Gold
39
Company Strategy
40
Latest Results
42
Financial Data
42
Table: Barrick - Key Financial Data
42
Address Details
43
Regional Overview
44
Chinese Quest For Minerals Undeterred
44
Table: Select Projects - Chinese Mining Investment In Africa
44
Look To West Africa For Rapid Growth
45
Tin Mining To Make A Comeback
46
Flurry Of Investment Into Southern African Coal
47
Changing Landscape For Precious Metals
48
Risks & Opportunities In Infrastructure
50
Global Industry Overview
52
Capex Cutbacks To Yield Rewards
52
M&A Activity To Pick Up
54
High Grade Opportunities In Iron Ore
54
Shifting Centre Of Growth For Platinum
55
Chinese & Indian Outbound Mineral Investment To Gather Pace
56
Shake-Up For Global Rare Earths Industry
57
Methodology
59
Industry Forecast Methodology
59
Sources
60
Risk/Reward Rating Methodology
61
Table: Weighting Of Indicators
62

The Tanzania 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 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.

Key Benefits

  • 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.

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