2012-10-26 14:34:38 - Fast Market Research recommends "Mozambique Mining Report Q4 2012" from Business Monitor International, now available
We maintain our medium-term forecasts for Mozambique's mining sector as a number of major projects remain on course to enter the fray over the next few years. We expect the value of the country's mining sector will reach US$645mn in 2016, from US$111mn in 2010. This growth supports our bullish view for the Mozambican economy and will see the mining sector rise from 1.2% of GDP in 2010 to 2.9% in 2016. Almost all of the country's coal production will be exported and thus the country will become a key driver of export growth in future, with India and China the main destinations.
Full Report Details at
While the outlook for the sector is positive, concerns remain surrounding the
capacity of the country's freight transport infrastructure to cope with the projected increase in mineral production over the next few years. Attempts to increase freight capacity have so far been met with considerable complications.
India Flexes Its Muscles
Following the visit of Indian minister of coal Sriprakash Jaiswal to Mozambique in January 2011, Q311 saw state mining company Coal India Limited (CIL) make its first foray into the country's mining landscape as the company's Africa-based subsidiary Coal India Africana Limitada (CIAL) announced plans to begin a series of exploration and development projects in Tete province.
CIL was reported to have completed initial prospecting and exploratory drilling in August 2011, with geological mapping expected to begin in Q411. The development will see Mozambique become the latest addition to CIL's overseas portfolio with the company already managing projects in South Africa, Australia and Indonesia as the government looks to secure supplies to help assuage the country's growing energy needs.
In Mozambique the government plans to submit a draft of a revised mining law by the end of the year in a bid to streamline procedures and attract more investment to its booming coal sector. The government has stated that its new mining code will not change royalties or mining taxes, and is purely to speed up the licence process and reduce bureaucracy for mining investment, a move that appears to be wholly positive for the sector. Mozambique is well positioned to benefit from increasing regulation elsewhere on the continent as the country seeks to open up its mining sector to greater foreign investment. This comes at a time when much of Africa, and the rest of the world, is seeking to increase the state's involvement in their respective mining sectors.
Mozambique's nascent mining sector is dominated by a handful of foreign mining companies including Vale, Pan African Resources and African Queen Mines. We expect the sector will become increasingly fragmented over the coming years with several new entrants enticed by the country's mineral potential, especially if coal and gold prices remain elevated. Indeed, little of the country has been scanned and on the basis of the reserves discovered thus far, plenty of opportunities remain.
Report Table of Contents:
- Mozambique Mining Industry SWOT
- Mozambique Business Environment SWOT
Global Mining Outlook
- Table: Recent Tax Increases
- Table: Largest Coal Projects
- Table: Major Frontier Mining Projects
Africa Mining Sector Outlook
- Table: Recent Government Intervention
Industry Trend Analysis
- Ready For Takeoff
- Table: Mozambique's Key Expansion Plans
- Table: Mozambique's Mining Industry Value & Production
- Coal: Mozambique To Become Global Growth Driver
- Table: Mozambique's Largest Coal Expansion Plans
- Table: Mozambique's Coal Production
- Gold: Production To Triple
- Table: Mozambique's Gold Projects
- Table: Mozambique's Gold Production
Africa Business Environment Ratings
- Table: African Government Intervention
- Table: Africa's Risk/Rewards Ratings
- Table: Select Companies Comparative Metrics
- Company Data
- Table: Vale's Financial Data
- Rio Tinto
- Table: Rio Tinto's Key Financial Data
- Pan African Resources
- Table: Pan African Resources' Key Financial Data
- Monthly Metals Update
- Aluminium: Substantial Support Around US$1,800/tonne
- Copper: Relative Outperformer But Still Weak
- Iron Ore: Temporary Resilience
- Lead: Break Of Support Indicates Further Weakness Ahead
- Nickel: Oversupply Pushing Prices Lower
- Steel: Overcapacity To Keep Prices In Check
- Tin To Outperform
- Zinc: Downward Trend Continues
- Table: Select Commodities - Performance & Forecasts (US$/tonne)
Business Environment Ratings Methodology
- Table: Mining Business Environment Indicators
- Table: Weighting Of Components
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