2013-09-22 09:03:52 - Fast Market Research recommends "Congo, Dem. Rep. Mining Report Q4 2013" from Business Monitor International, now available
The Democratic Republic of the Congo (DRC)'s vast mineral resources will continue to attract greater international interest, given the country's huge untapped and high-grade reserves and improving, though still very poor, business environment. In terms of growth potential, the industry is one of the most attractive in Sub-Saharan Africa (SSA). We forecast the value of the sector to rise sharply from 2011 levels to US$2.5bn in 2017, mostly driven by copper and gold production. However, while we expect substantial growth in mining output, risks to investment remain numerous, with security concerns and the lack of adequate infrastructure most pressing.
Ore To Play For
After half a century of decline and unrealised potential, the DRC's mining sector is on the verge of rapid
growth, as several huge gold deposits are developed. Numerous large-scale projects are coming online in the next five years, with perhaps the most notable being Randgold Resources' Kibali gold mine, which is expected to come online in 2013. The mine has reserves of 13mn ounces (moz) and is one of the largest gold projects due to come to fruition in the next few years.
Full Report Details at
- www.fastmr.com/prod/684716_congo_dem_rep_mining_report_q4_2013.a ..
As well as gold, there are several significant copper projects due to come online. In addition to their size, the copper deposits in the DRC are attractive due to their high copper grade. The Kipoi and Kamoto mines are estimated to contain grades above 3.0%, significantly higher than the world average of 0.6%. This will be an increasingly important issue as some of the world's largest mines, including Antamina in Peru, Escondida in Chile and Grasberg in Indonesia, have experienced falling ore grades and thus higher extraction costs.
While the potential is clear, political impediments are likely to remain, as conflict continues in the east of the country, where much of the mining occurs. The potential for political ructions will continue to pose downside risks to mining sector growth.
We expect numerous new players into the DRC's mining sector over the coming years as the country's undeveloped mineral reserves, attract further investment in the country; our forecast that metals prices will remain elevated is an additional attraction. At present, there are only a few mining companies present, mostly small or mid-tier gold and copper miners. Anvil Mining is a leading copper miner in the DRC, with facilities at Mutoshi and Kinsevere. The company was acquired by China Minmetals and is the first acquisition (of what we expect to be many) by a Chinese company of mining companies in Africa.
Other players include Banro Corporation, a Canadian-owned gold exploration and development firm with four wholly owned mining projects located along the major gold belt of the DRC's eastern provinces. Finally, Tiger Resources Ltd is an Australia-owned mining company, which recently made the transition from explorer to producer. The company is engaged primarily in mining copper and cobalt and owns a portfolio of properties, all in the Katanga copperbelt region.
Partial Table of Contents:
BMI Industry View
- Copper: Output To Double, Substantial Risks Remain
- Higher Grade Deposits Give Further Attention
- Table: DRC - Largest Copper Expansion Plans
- Plethora Of Risks Await Investors
- Table: DRC - Copper Production ('000 tonnes, unless stated otherwise)
- Gold: Infrastructure & Security Concerns Reduce Sector's Shine
- Table: DRC - Main Gold Projects
- Table: DRC - Gold Production Forecasts ('000 ounces, unless stated otherwise)
Industry Risk Reward Ratings
- Risk/Reward Ratings
- Elevated Prices Increase Rewards, But Political Risks Lurk
- Table: Africa - Mining Risk/Rewards Ratings
- Botswana: All Round Outperformer
- Zambia: Investment To Continue Despite Higher Taxes
- South Africa: Worsening Environment For Mining Companies
- Mozambique: Mining Sector Set To Boom
- Sierra Leone, Mali, Guinea And Cote d'Ivoire: Massive Reserves But Uncertain Outlook
- DRC: Huge Resources, Enormous Risks
- Zimbabwe: Uncertainty To Deter Investment
- Rapid Growth On The Horizon
- Table: DRC - Key Projects
- Plethora Of Risks To Weigh On Investment
- Table: DRC - Mining Industry Value & Production
- Substantial Regulatory Hurdles To Remain
- Commodity Strategy
- Non-Ferrous Metals
- Aluminium: Weakness Ahead After Recent Surge
- Copper: Bounce To Give Way
- Nickel: Underperformance To Continue
- Zinc: Weak Steel Sector To Weigh On Zinc
- Table: Select Commodities - Performance & BMI Forecasts
- Table: BMI Commodities Strategy
- The Democratic Republic of the Congo - Q3 2013
- Table: Select Companies' Financial Data
- MMG Limited - Q4 2013
- Table: MMG Limited - Key Financial Data
- Randgold Resources
- Table: Randgold Resources - Financial Results
- Freeport-McMoRan - Q4 2013
- Company Strategy
- Address Details
- Table: Freeport-McMoRan Key: Financial Data
- Africa Overview
- 1. Lack Of Infrastructure The Greatest Challenge
- 2. Resource Nationalism Will Increase
- Table: Recent Government Intervention
- 3. Continuing Chinese Investment Into Africa
Full Table of Contents is available at:
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.