Business Monitor International


Tanzania Mining Report

Published 19 March 2014

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

Tanzania's mining industry will experience stagnation over our forecast period to 2018 . This will largely be a result of minimal gold 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 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 and are likely to delay potential new projects.

Growth To Slow As Weak Prices Bite
Tanzania - Gold Output And % Growth

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.

Table of Contents

BMI Industry View
7
SWOT
9
Industry Forecast
10
Gold: Stagnation To Take Hold
10
Table: Tanzania - Gold Production
12
Industry Risk Reward Ratings
13
Risk/Reward Ratings
13
Lower Gold Prices Reduce Rewards
13
Table: Africa - Mining Risk/Reward Ratings
14
Reduced Rewards For Copper Mining
14
Mixed Rankings For West Africa
15
Substantial Rewards In Southern Africa
15
Lack Of Uniformity In Regulatory Development
16
Political & Infrastructure Risks Lurk
17
Country Highlights
18
South Africa: Deteriorating Environment For Mining Companies
18
Mozambique: Mining Sector Set To Boom
19
Botswana: All Round Outperformer
19
Market Overview
20
Table: Tanzania - Main Mining Projects
21
Government Intervention To Weigh On Sector
21
Table: Tanzania - Mining Industry Value & Production
22
Regulatory Development
23
Tax Regime
24
Corruption Concerns To Continue
25
Table: Political Overview
26
Table: Africa - Regulatory Outlook
26
Commodities Forecast
28
Commodity Strategy
28
Steel: Subdued Medium Term Outlook
30
Aluminium: Despite Recent Upswing, Underperformance To Persist
31
Copper: No Time To Celebrate Yet
32
Lead: Outperformance On The Cards
33
Nickel: Sideways Movement In Weeks Ahead
34
Zinc: Positive Momentum To Continue
36
Table: Select Commodities - Performance & BMI Forecasts
37
Table: BMI Commodities Strategy
38
Competitive Landscape
39
Table: Tanzania - Main Mining Companies' Performance
40
Company Profile
41
Barrick Gold
41
Company Strategy
43
Latest Financial Results
44
Financial Data
44
Table: Barrick - Key Financial Data
44
Address Details
45
Regional Overview
46
Mining - Africa Overview
46
Key Opportunities
46
1
46
2
47
3
48
Key Challenges
49
1
49
2
50
3
51
Table: Africa - Key Mining Regulatory Developments
52
Global Industry Overview
53
Methodology
65
Industry Forecast Methodology
65
Sources
66
Risk/Reward Rating Methodology
67
Table: Mining Risk/Reward Ratings Indicators
69
Table: Weighting Of Indicators
70

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 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-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