BMI's Executive Summary

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Since 2003, the mining industry of Mozambique has attracted increased attention of the private sector. Capital inflows have surged and a number of companies from countries such as South Africa, Russia, Brazil and India are buying stakes in mines throughout the country, signifying the emerging importance of Mozambique's mining industry in its economy. The diverse geology of Mozambique offers a range of minerals and metals including gold, uranium, titanium, coal and bauxite. The Manica belt spanning western Mozambique is the primary source for the country's gold, copper, iron ore and lead resources. High-grade bauxite is also found here.

In spite of the myriad natural resources that Mozambique hosts, the country suffers from certain infrastructural and systemic flaws. Corruption is high and the labour market is restrictive. Setting up business takes comparatively longer and bureaucratic delays worsen the situation. Also, Mozambique needs to intensify its efforts to build good infrastructural facilities that will support growth of industries. On the positive side, the government of Mozambique has taken several steps to enhance the prospects of its mining industry. The state has embarked on a mineral export promotion programme to boost its depleted foreign exchange reserves. Also, government policies over the forecast period are observed to be focused on improving the administrative structure of mining operations as well as upgrading the health and security provisions.

The country's mining laws have been established with the objective of leveraging its vast mineral base to boost its overseas revenues via large-scale exports. Moreover, since the country houses a substantial number of artisanal miners, the mining laws also aim to promote small-scale mining in the country. Unlike many African countries, the state does not control the mining industry in Mozambique and it is not also required to be a participant in mining ventures. Two types of taxation apply to mining operations in Mozambique: production tax and surface tax. Production tax is based on the value of mining output and surface tax is owed annually by all holders of exploration licenses or mining concessions, and is determined on the basis of area.

Industry Forecast

With a number of large-scale mining projects under way in Mozambique, the prospects of the industry look promising. Surging metal prices around the world will also add to the prospects. According to BMI, the mining industry of Mozambique is forecast to log an average growth of 11.42% during 2007-11 and be valued at US$0.33bn in 2011.

Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 3 - Project And Property Updates

Metals

Minerals

Table: Mines In Mozambique

Chapter 4 - Business Environment

Introduction

Regional Overview

Table: Regional Ave. Scores 1

Mozambique: Business Environment Ranking

Table: Botswanna Business Environment

Chapter 5 - Industry Forecast Scenario

Metals Price Outlook

Risks To Outlook

Global Industry Overview

Regional Analysis

Mozambique Mining Industry Forecast

Table: Mozambique Mining Industry Forecast

Chapter 6 - Competitive Landscape

Chapter 7 - Company Monitor

BHP Billiton

Central African Mining and Exploration

Kenmare Resources

Chapter 8 - Appendix A: Mining Ratings: Methodology

Introduction

Breakdown of Ratings

Breakdown Of Components

Chapter 9 - Appendix B: The World Economy

Outlook And Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 & 2008

Japan’s Medium-Term Prospects

China

China In 2007 And 2008

China’s Medium-Term Prospects

Commodities

Correction To Continue

Lower Metal Prices, But Still Historically High

Risks To Outlook

Oil

Chapter 10 - Appendix C: Regional Demographic Data

Table: The Long View: Data Over The Economic Cycle (2000-2007)

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn