PRLog (Press Release) – Apr 13, 2011 – Mozambique's mining sector is set to be transformed over the period to 2015 as coal and gold production increase substantially on the back of investment from, among others, Vale, Riversdale Mining and Pan African Resources. We expect the value of the country's mining sector to reach US$667mn by 2015 from US$96.5mn in 2010, marking an annual average growth rate of 29.9%. This rapid rate of growth will be one of the fastest in the world and on a similar level to Mongolia's mining sector.
Coal To Boost Output Growth
We forecast rapid growth for the Mozambican coal sector, averaging 32.2% per annum from 24mnt (million tonnes) in 2010 to 95mnt in 2015. This growth will be driven by Vale and Riversdale Mining and will make Mozambique's coal sector one of the fastest growing in the world. The largest project is Riversdale's Zambeze mine which is expected to produce 45mtpa (million tonnes per annum) by 2014, with the potential to ramp up production to 90mtpa. This mine will become the country's largest coal mine and one of the largest coal projects in the world. In addition, Vale expects its Moatize coal mine to produce 12.7mnt in 2011 before rising to 20mtpa (million tonnes per annum) by 2014. This project is part of Vale's plans to place greater focus on investment in Africa, which it sees as a key growth area.
Gold production will exhibit similar levels of growth as coal output, reaching 62kozpa in 2015, marking average growth of 36.5% per annum from 16koz in 2010. This growth will be driven by Pan African Resources' Manica mine which is expected to produce 30koz (thousand ounces per annum) in 2012. Moreover, African Queen Mines anticipates production at its Fingoe mine to commence at 20kozpa from 2011.
Regulatory Environment
Mozambique has a business friendly environment and we do not expect this to change over the coming years. The country ranks fourth in our business environment ratings for ten countries in Africa with a score of 47.5 (out of 100), due to its substantial mineral reserves and a pro-business outlook. In addition, Mozambique has suggested that it will not increase taxes on the mining sector, thus potentially improving its competitive advantage over other mineral-rich countries such as Australia, Chile and Brazil where similar plans have been proposed or implemented.
That said, we expect the legal framework to become more stringent to ensure that the country benefits from its mineral wealth as the country's mining sector receives greater levels of investment. In addition, environmental considerations are also likely to come to the f Kenmore Bisque 15 inchi ore. Indeed, recently the government introduced a penalty for environmental damage for oil operations and is seeking to implement fines for the mining sector for environmental degradation.
Key Players
Mozambique's nascent mining sector is dominated by a handful of foreign mining companies including Vale, Pan African Resources and Riversdale Mining. 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.
For more information or to purchase this report, go
0 komentar:
Posting Komentar