New Study Zambia Mining Report Q3 2015
Miner's operating in Zambia will threaten to deter mining investment and shelve expansion projects due to the country's deteriorating regulatory environment . C opper will be the key driver of growth in Zambia's mining sector while coal output growth will contribute modestly over the coming years.
Political Outlook - On 27 January 2015 Edward Lungu was elected as the Country's sixth President. President Lungu's election will mean a continuation of the populist policies of recently deceased PF President Michael Sata whose death in October 2014 prompted the January election. Nevertheless we note that President Lungu has not secured a strong mandate. With Zambia facing its greatest macroeconomic challenges in recent years and set to go to the polls once more in 2016 Lungu will face difficulties in maintaining policy continuity beyond the next 18 months.
Full Report Details at
- http://www.fastmr.com/prod/1004035_zambia_mining_report_q3_2015.aspx?afid=101
Regulatory Outlook - Zambia's mining tax will hinder the country's copper production growth and deter investment. The government has shown itself capable and willing to take a hard-line approach towards decisions made by foreign companies operating in the country. The latest of which is the new mining tax implemented on 1 January 2015 which raises royalties on open pit mining from 6.0% to 20.0%.
Mining Outlook - We expect a global copper price to remain weak which is based on our view of a structural slowdown in China. We forecast copper prices to average USD5750/tonne in 2015 significantly lower than USD6830/tonne in 2014. The decline in copper prices will squeeze miners' profit margins and reduce government revenue from the mining sector.
Report Table of Contents:
BMI Industry View
Regulatory Turmoil
SWOT
Industry Forecast
Copper: Investment Under Threat
Risks To Outlook
Table: Zambia: Major New Copper Projects/ Expansions
Table: Copper Production Forecast (Zambia 2010-2018)
Coal: Production Ramp-Up
Table: Zambia - Coal Projects
Potential Pitfalls Ahead
Table: Coal Production Forecast (Zambia 2010-2018)
Industry Risk Reward Ratings
Risk/Reward Ratings
Rewards
Industry Rewards
Country Rewards
Table: Zambia - Major Mining Projects & Expansions
Risks
Industry Risks
Country Risks
Risk/Reward Ratings
Botswana On Top
Table: Africa - Mining Risk/Reward Ratings
South Africa: Still Ranking Highly
Lower Gold Prices Reduce Rewards
Regulatory Development
Table: Zambia - Political Overview
Table: Africa - Regulatory Outlook
Commodities Forecast
Commodity Strategy
Ferrous Metals:
Iron Ore: Bounce Won't Last Weakness In 2015
Steel: Long Road To Price Recovery
Non-Ferrous Metals:
Aluminium: Elevated Prices In Coming Weeks
Copper: Strength To Turn To Weakness By Q414
Lead: Price Bounce Underway
Nickel: Prices To Cool In Coming Months
Tin: Market Tightness To Drive Prices Higher
Zinc: Prices To Moderate By Q414
Table: Select Commodities - Performance & BMI Forecasts
Competitive Landscape
Some Diversification
Major Players To Remain Dominant
Table: Zambia Key Players - Comparative Valuation Metrics
Company Profile
Vedanta Resources
Latest Financial Results
Company Strategy
Company Details
Table: Vedanta Resources - Key Financial Data
First Quantum
Latest Results
Table: First Quantum: Key Financial Data
Regional Overview
Chinese Quest For Minerals Undeterred
Table: Select Projects - Chinese Mining Investment In Africa
Look To West Africa For Rapid Growth
Tin Mining To Make A Comeback
Flurry Of Investment Into Southern African Coal
Changing Landscape For Precious Metals
Risks & Opportunities In Infrastructure
Global Industry Overview
Capex Cutbacks To Yield Rewards
M&A Activity To Pick Up
High Grade Opportunities In Iron Ore
Shifting Centre Of Growth For Platinum
Chinese & Indian Outbound Mineral Investment To Gather Pace
Shake-Up For Global Rare Earths Industry
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Rating Methodology
Table: Weighting Of Indicators
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