BMI's Executive Summary

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The geology of Zimbabwe is very richly endowed. Of the 40 known metals and minerals that it is home to – gold, platinum and chrome form the principal endowments. The country's gold reserves are among the largest in the African region while it hosts the second-largest platinum reserves in the world. Another segment that has caught the attention of miners in Zimbabwe is diamonds after the discovery of a number of significant kimberlites. For a country long saddled with severe economic problems, the mining industry underscores its importance by earning over 40% of the total export revenues for the nation. Like its African peers, Zimbabwe has not been able to derive the full benefits of its myriad resource base.

Chiefly responsible for this is the business-incompatible environment that the country harbours. Persistent hyperinflation, ineffective fiscal policies and lax regulations characterise the Zimbabwean economy as a result of which the country is viewed as a high-risk destination. Illegal smuggling of gold and diamonds also translates into loss of millions of dollars of revenue. All these factors indicate the need for the government of Zimbabwe to adopt a progressive outlook for the country's future and align its laws and regulations to complement the economy.

The Ministry of Mines and the Zimbabwean Chamber of Mines are the regulatory bodies that govern the mining industry while it is the Environmental Management Agency that deals with environmental issues in mineral exploitation at the project inception and development stages. A new mining empowerment legislation is on the horizon, and will permit Zimbabwean nationals to claim majority stake in foreign companies. However, the impending legislation is not finding favour with majority of the players as it is seen to be another blow to the already frail investment environment of the country.

Industry Forecast

The recent surge in metal prices–especially of gold and platinum–has been a boon for the mining industry of Zimbabwe. However, the not so investor-friendly policies can be expected to have an adverse impact over the performance of the mining industry over the forecast period. According to this report, the industry is forecast to register an average growth of 2.78% during 2007-2011.

Contents

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Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 3 - Project And Property Updates

Metals

Minerals

Precious Stones

Table: Mines In Zimbabwe

Chapter 4 - SWOT Analysis

Zimbabwe Political SWOT

Zimbabwe Economic SWOT

Zimbabwe Business Environment SWOT

Chapter 5 - Business Environment

Introduction

Regional Overview

Table: Regional Ave. Scores 1

Zimbabwe: Business Environment Ranking

Table: Zimbabwe Business Environment

Legal Framework

Labour Force

Table: Demographic Indicators (2005)

Foreign Investment Policy

Table: Middle East & Africa Annual FDI Inflows

Table: Zimbabwe Annual FDI Inflows

Political Environment

Table: Selected Cabinet List

Foreign Policy

Chapter 6 - Industry Forecast Scenario

Metals Price Outlook

Risks To Outlook

Global Industry Overview

Regional Analysis

Zimbabwe Mining Industry Forecast

Table: Zimbabwe Mining Industry Forecast

Chapter 7 - Competitive Landscape

Chapter 8 - Table: Zimbabwe Mining – Key Players

Chapter 9 - Company Monitor

Zimbabwe Platinum Mines

African Consolidated Resources

Hwange Colliery

Chapter 10 - Appendix A: Mining Ratings: Methodology

Introduction

Breakdown of Ratings

Breakdown Of Components

Chapter 11 - 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 12 - 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