Boston, MA -- (SBWIRE) -- 08/16/2012 -- 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$639mn in 2016, from US$86mn in 2010. This growth supports our bullish view for the Mozambican economy and will see the mining sector rise from 0.9% of GDP in 2010 to 2.1% 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.
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.
View Full Report Details and Table of Contents
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.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Materials research reports at Fast Market Research
You may also be interested in these related reports:
- Global Mining Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
- Global Mining Survey 2012-2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry
- Chile Mining Report Q3 2012
- Angola Mining Report Q3 2012
- Industry Dynamics, Growth, Threats & Opportunities in the Mining Industry - 2012-2013 : Survey Intelligence
- Botswana Mining Report Q3 2012
- United States Mining Report Q3 2012
- China Mining Report Q3 2012
- Namibia Mining Report Q3 2012
- Zambia Mining Report Q3 2012