CC BY
27Фактические данные по горнодобывающей промышленности сектора на юге Африки -Мозамбик и Южная Африка
Силима Педру Пинту,
аспирант департамента инженерного бизнеса и менеджмента в Инженерной академии, Российский университет дружбы народов (РУДН), silima2507@gmail.com
В этой статье исследуется фактические данные по горнодобывающей промышленности сектора на юге Африки, особенно в Мозамбике и Южной Африке с 2011 - 2017 гг. В фактические данные были проанализирован обзора страны этого региона, политические и экономические контексты, законы и правила. А также горнодобывающие показатели и тенденции, бизнес климат и крупные горнодобывающие компании в этих стран. В обзоре по странам для этих двух стран в исследовании указывается потенциал природных ресурсов, которыми обладают эти два региона в южноафриканском регионе, и их географическое положение, фискальные реформы, интерес иностранных компаний, индикаторы развития и политика Мозамбика и Южной Африки. Кроме того, в исследовании рассматривается политический контекст, в котором жили эти две страны после обретения независимости, правящие партии и вооруженный конфликт между партиями Фрилимо и Ренамо в Мозамбике. Наконец, в исследовании упоминается экономический контекст, нормативные законы в горнодобывающей промышленности, деловой климат и крупнейшие транснациональные компании, которые заняты в сфере горнодобывающей промышленности в Мозамбике и Южной Африке. Ключевые слова: горнодобывающий сектор, горнодобывающий сектор на юге Африки, горнодобывающий бизнес на юге Африки, горнодобывающий сектор в Мозамбике, горнодобывающий сектор в Южной Африке.
1. Introduction
In the past few decades, Southern Africa's mining sector has played a key role in attracting foreign investments into the region. Accordingly, investments in mineral resources have evolved into a major source of development finance, contributing to the economic growth of many Southern African economies [1]. Southern Africa has proven reserves approaching $5 Trillion in value, with approximately 3,000 active registered mines [2].
This study research paper covers the mining industry in general for the southern African region, with specific reference to two countries in the region that have burgeoning mining sectors, conducted during the August to December 2019 period, focused on Mozambique and South Africa. Southern Africa, within this paper refers to the two countries under evaluation. The term regional, refers to the larger geographical region, with countries where the mining industry has the greatest impact on economic development and includes Angola, Botswana, the Democratic Republic of Congo (DRC), Madagascar, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. The two countries Mozambique and South Africa represent different levels of maturity within the mining industry; South Africa having a long established mining culture, Mozambique has seen intensive investment in its mining sector over the past 15 years [3].
Mining is an industry of strategic importance in Southern Africa. Most of the world's chromium, vanadium, platinum, and diamonds originate in the region, along with 36% of gold and 20% of cobalt [1]. Formal mining in the region accounts for about 60 per cent of foreign exchange earnings, 10 per cent of GDP and five per cent of formal employment. Due to the region's endowment of world-class deposits of coal, chromites, gold, diamonds, platinum and copper, the minerals sector has played a major role in the development of infrastructure. The minerals industry has been the nucleus for the growth of many towns and cities within the sub-region [2].
Despite the abundance mineral resources, the mining industry in Southern Africa has undergone major turmoil in the past two decades, ranging from the global financial crisis, increasingly vocal calls for the nationalization of mines, falling commodity prices, labour unrest, and police brutality [1]. Consequently, the abundance minerals and metals in the region present immense potential for sustainable economic growth, an avenue for massive reduction in poverty and employment generation through forward and backward integrations across the productive sectors of the region.
X X
о
го А с.
X
го m
о
2 О
м о
o
CS
0
CS
CS
01
o m m
X
<
m o x
X
The remaining of this paper is organized as follows: Section 2 provides the methodology of study used in this paper. Section 3 and 4 outlines the country fact sheets of the mining sector in Mozambique and South Africa. It includes country overview, political and economic context, law and regulations, mining indicators and trends, data on minerals production, mining business climate and major mines companies. Section 5 concludes this research with outlook of mining industry in Southern Africa (Mozambique and South Africa).
2. Methodology
This study employed a panel dataset of Southern African countries, in particularly Mozambique and South Africa from 2011 to 2017. The data used in this analysis was generated from World development indicators, the World Bank, the U.S Geological Survey, the Virginia Economic Development Partnership, the IMF Database, UNCTADStad, the World Mining Data, the EITI In Mozambique and the Fraser Institute Survey of Mining.
3. Country fact sheets on mining sector industry in Mozambique
3.1. Mozambique
Highlights
1. Mozambique's mining sector has a large discovered and undiscovered mineral resources endowment and stable fundamentals, and the country continue to intensive investment in its mining sector over the past 15 years; 2. Mozambique's mining sector is in crisis due to falling commodity prices, unclear regulatory laws and energy, railroads, highways and ports problems for disposal of products to the final destination; 3. Mozambique is one of the most dynamic economies in Southern Africa, driven by sound macroeconomic management and Foreign Direct Investment (FDI) targeting the subsectors of coal, hydrocarbons and heavy sands; 4. India, South Africa, Netherlands, Chine are major trade partners of Mozambique.
3.2. Country overview
Mozambique has long been synonymous with political instability and conflict, as the country has plunged into a civil war that lasted 16 years, since its end the country has been striving for its development and today is referred to as an "El D'ourado" in Southern Africa due to coal reserves in the Moatize coal basin (Tete), heavy sands of Moma (Nampula) and Chibuto (Gaza), graphite in the Balama and Montepuez, and natural gas from the Rovuma basin in the province of Cabo Delgado, in the north of the country. This has been driven by economic and fiscal reforms, increasing Foreign Direct Investment (FDI), attractive mining sector policies, as well as increased infrastructure development.
Table 1. Selected development indicators [4], [5], [6].
Land area 786 380 km2
Official language(s) Portuguese
Capital Maputo
Head of state President Filipe Jacinto Nyusi (since 2015)
Currency (Exchange Metical (1 US$ = 62,09 MZN) rate)
Major trade partners India, South Africa, Netherlands, Chine and Italy
In the political context, Mozambique is a multiparty country, which had its first presidential and legislative elections in 1994, then a civil war for 16 years, but the FRELIMO party has been in power since independence in 1975. However, political instability has been disputed since the armed conflict between the government and the opposition party (RENAMO) reignited in 2013 and led to the last one not recognizing the results of the 2014 elections, two years after the announcement in 2016 of the debt contracted without the legal procedures required (called Hiddeu-Debts, see Erreur! Sour de renvoi introuvable), the government is preparing a roadmap to deal with these debts and face the unsustainable debt [7].
3.4. Economic context
In recent years, Mozambique's economy has been adversely affected by the fall in commodity prices and adverse weather conditions, as well as by the issue of undisclosed loans in the spring of 2016 and the ensuing freeze in donor support. Growth decelerated in 2016 to 3.8 percent (from 6.6 percent in 2015) and the latest data show that the economy grew by 3.7 percent in 2017, driven by a recovery in agriculture and mining activity (due to a surge in coal production) [8].
Table 2. Selected development indicators [9].
GDP per capita (current USD) 623 528 378 426
Nominal GDP (USD Millions) 16 961 14 798 10 897 12 652
Real GDP (%) 7,4 6,6 3,76 3,74
UN Humanity Development Index 0,427 0,432 0,435 0,437
3.3.
Political context
The external current account deficit continued to narrow in 2017. This was due to a boom in mining exports and to a contraction in megaproject imports of services. Another factor was the one-off inflow in income associated with the capital gain tax from the sale of ENI's stake in the Coral South natural gas field to Exxon Mobil. Debt remains in distress as the stock of public sector debt-to-GDP reached 128.3 percent at end-2016, with several debt payments missed, including on the Mozam Eurobond [8].
3.5. Laws and regulations
Mozambique's mining law states that the government owns all mineral resources and permits autonomous mining operations by private companies with mineral exploration rights determined by the scale of proposed operations. It is required that a local company be incorporated into an operation, all applications for exploration and mining rights to be addressed to the Minister of Mineral Resources and Energy for processing by the National Directorate of Mines [2]. In 2002, the government enacted legislation that provided guarantees to holders of mining concessions, allowed small and artisanal miners to obtain exclusive rights to a specific zone and allocated funds for geological maps showing mineral resources. The National Mining Institute (INAM) is the regulator in the mining sector of Mozambique [10].
3.6. Mining indicators and trends
Vast coal reserves and significant potential mineral deposits in Mozambique's places the country as one of the most important growth stories in the global mining sector going forward. According to Frost & Sullivan, Mozambique's coal mining is the fastest growing industrial segment. Significant reserves of coking coal have been
discovered in the Tete region and Zambezi area, which has in the past few years attracted a number of international mining companies. The production of aluminium is one of the most important revenue generators for Mozambique. The Mozal aluminium smelter operated by BHP Billiton is one of the largest aluminium smelters in Africa. Production data is presented by each commodity type of the extractive industry and was gathered through ElTl in Mozambique, World Mining Data and U.S. Geological Survey.
Table 3. Mineral production, 2013-2017 [11].
Table 5. Major mining companies in Mozambique [10].
Niobium t 33 6 9 5 7
Tantalum t 184 35 50 28 41
Titanium t 320800 399900 475800 425600 504200
Alumiiniu t m 562000 564000 566880 558390 571125
Bauxite t 8633 6190 3386 4985 1451
Gold kg 178 91 197 242 201
Bentonite t 846 93 739 350 322
Diatomite t 541 375 78 0 0
Salt t 110000 120000 150000 150000 160000
Zircon t 46900 31400 50800 51800 68200
Steam t Coal 1962200 2312973 2546586 1813717 2203430
Coking t Coal 2991794 3556776 3784603 4786612 3862959
3.7. Mining business climate
Table 4. Selected business indicators [12].
Investment attractiveness (rank, out of 15 in Africa) 14 Fraser Institute Survey of Mining Companies, 2017
Policy perception (rank, out of 15 in Africa) 10 Fraser Institute Survey of Mining Companies, 2017
Ease of doing business (rank, out of 48 in Africa) 16 World Bank, Business 2018 Doing
Dealing with construction permits (rank, out of 48 in Africa) 7 World Bank, Business 2018 Doing
Getting electricity (rank, out of 48 in Africa) 7 World Bank, Business 2018 Doing
Registering property (rank, out of 48 in Africa) 25 World Bank, Business 2018 Doing
Getting credit (rank, out of 48 in Africa) 39 World Bank, Business 2018 Doing
Roadways (in km2) (compared to 79 Saharan Africa km/1,000 in Sub- CIA World Factbook, 2016
Ancuabe Graphite Heavy Sands Private C. Delgado
Vale Mozambique Gold, Coal, Associated Metals, Precious Metals Private Tete
Kingho Investment Company, Lda Coal Private Tete
Chibuto Heavy Sands Coal Private
ETA Star Coal Private Tete
ENRC Mozambique Lda Coal, Associated Minerals, Precious and Semiprecious Private Tete
Metals, , Rare Earths
Moatize Mines, Lda Coal and building stone Private Tete
International Coal
Ventures Private Coal Private Tete
Limited - ICVL
Benga & Zambeze
Tele Methane Gas Coal methane gas Private Tete
JSPL Mozambique Minerals, Lda Basic Metals, Coal, Zirconium, Gold Private Tete
Ruvibue Mines Coal Private Tete
Kenmare Heavy Sands Private Nampula
Mimoc- Minerais de Gold and associated minerals Private Manica and
Mozambique, Lda Sofala
Ncondezi Coal Coal Private Tete
Montepuez Ruby mining Grenades, Basic Metals, Ruby, Tourmaline Private C. Delgado
The rankings for all economies are benchmarked to May 2018. While general business indicators confirm Mozambique's unstable fundamentals, the development show a downward trend, due to the events of the last years, related to debt contracted by the country illegally: Mozambique's score on the Fraser Survey fell from 44.72 in 2013 to 30.78 in 2017 for investment attractive index, 57.58 in 2013 to 51.96 in 2017 for policy perception index and 36.11 in 2013 to 16.67 in 2017 for best practices mineral potential. It also ranks in the lower half of African countries on policy perception and investment attractiveness. Shortages of power, roads, railways and ports that can respond to industry demand are the most important problems faced by the mining industry in Mozambique today. Power outages not only result in production losses and increased operational costs, they also represent a threat to employee safety.
3.9. Outlook: As the business indicators in the table at the beginning of this section show, Mozambique's fundamentals in the mining sector remain stable but attractive to foreign companies due to the latest natural resource discovery such as graphite and natural gas in the northern part of the country, coal in the Moatize basin, but the sector also faces major energy, railways, ports, and highway infrastructure problems. Nevertheless, the mismatch between government expectations and company realities will continue to have a significant impact on the future trajectory of the sector.
4. Country fact sheets on mining sector industry in South Africa
4.1. South Africa
Highlights
1. South Africa's mining sector has a large resource endowment and strong fundamentals; 2. South Africa remained one of the world's leading mining and mineral-processing countries; 3. China, USA and Germany are major trade partners of South Africa.
4.2. Country overview
For most of its modern history up until 1994, South Africa was under white minority rule, which from 19481991 instituted a system of racial segregation called Apartheid. Democratic elections brought the African National Congress (ANC), at that time led by Nelson Mandela, to power. It is today Africa's most developed country and the continent's second largest economy (behind Nigeria) [13].
Table 6. Selected development indicators [14], [15], [16].
Land area 1 213 090 km2
isiZulu, isiXhosa, Afrikaans, Sepedi,
Official language(s) English, Setswana, Sesotho, Xitsonga, siSwati, Tshivenda,
Capital Pretoria (executive), Bloemfontein (judicial)
Head of state President Matamela Cyril Ramaphosa (since 2018)
Currency (Exchange rate) Rand (1 US$ = 13.9658 ZAR)
Major trade partners China, USA, Germany, Japan and India
X X O OD A C.
X
0D m
o
3.8.
Major mining companies
4.3.
Political context
IO
2 O IO
o
o
CS
0
CS
CS
01
o m m
X
<
m o x
X
Despite its traditionally strong mandate, the ruling ANC has in recent years faced growing political opposition and slowly declining election results. A rising tide of protests over poor delivery of public services and economic inequality are evidence for growing dissatisfaction with the ANC and its leader Jacob Zuma, who is embroiled in several corruption scandals.
4.4. Economic context
The South African economy is the most advanced on the African continent. It has a sophisticated financial system that includes one of the top 10 stock exchanges in the world. It also has well developed physical, telecommunications, and energy infrastructures. As an emerging market in the global economy, South Africa is a leader and a competitive producer of raw commodity exports and value-added goods. Although mining only makes up around 6% of South Africa's GDP, it accounts for around 60% of the country's total exports by revenue. South Africa is a middle-income, emerging market with an abundant supply of natural resources, well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is Africa's largest and among the top 20 in the world [13]. Economic growth is low at a projected 1.5 % for 2019 [17], the lowest in the region, while unemployment (27.5%), poverty, and inequality are high. Nevertheless, South Africa's economic fundamentals remain strong.
Table 7. Selected development indicators [9], [18].
GDP per capita (current USD) 6 151 5 280 5 743 6 429
Nominal GDP (USD Millions) 348 872 295 746 317 536 350 638
Real GDP (%) 1,85 1.28 0,57 1,32
Fiscal Balance (% of GDP) -2,5 -2,8 -4,6 -5,1
UN Humanity Development Index 0,699 0,696 0,692 0,685
Iron t 46569090 52493570 47323600 43196310
Chromium t 6023450 6176600 6888490 6471310
Cobalt t 1294 1332 1362 1101
Manganese t 4821140 6182550 4854840 4754560
Nickel t 51208 54956 56689 48994
Titanium t 1056200 1195000 1150000 1200000
Vanadium t 21397 21582 17455 15877
Aluminium t 822000 745000 695000 701000
Copper t 80821 78697 77360 65257
Lead t 41848 29348 34573 39344
Zinc t 30145 26141 29040 26695
Gold kg 160016 151611 144504 142162
Palladium kg 76008 58410 82691 76273
Platinum kg 137024 93991 139125 133241
Rhodium kg 18129 12916 18722 19237
Silver kg 68777 49220 51861 55622
Bentonite t 177187 171119 165535 148742
Diam. (Gem) ct 3251483 3223527 3293220 3321830
Diam. (Ind) ct 4877224 4835290 49939840 4982750
4.5. Mining indicators and trends
Historically, mining in South Africa has been the main driver behind the growth of Africa's most industrialized country in Africa. The South Africa is the world's largest producer of platinum, chrome, vanadium, vermiculite, and manganese and the second largest producer of rutile, ilmenite, palladium, and zirconium.
Table 8. Mineral production, 2013-2017 [11].
Feldspar t 191443 102541 130184 127872
Fluorspar t 157776 164054 220000 180000
Vermiculite t 127658 143007 138290 166483
Zircon t 224446 398101 397420 370540
Steam Coal t 25345200 252928000 257308000 255572000 25345200
Coking . Coal 1 3354000 3232000 2978000 3467000
Table 9. Mineral reserves, 2017 - Data in metric tons [13].
Gold t 6 000
PGM's t 63 000
Diamonds (industrial) Millions carats 70 000
Fluorite Mio. tCaF2 41
Iron ore t 770
Phosphate Mio. t 1 500
Vermiculite 1 000 t 14 000
Lead 1 000 t 300
Antimony 1 000 t 27
Llmenite 1 000 t Ti02 63 000
Rutile 1 000 t Ti02 8 300
Zircon 1 000 t Zr02 14 000
Chromite Mio. t 200
Manganese Mio. t 200
Nickel 1 000 t 3 700
Vanadium 1 000 t 3 500
4.6. Mining business climate Table 10. Selected business indicators
Investment attractiveness ^ (rank, out of 15 in Africa) Fraser Institute Survey of Mining Companies, 2017
Policy perception (rank, out of ^ 15 in Africa) Fraser Institute Survey of Mining Companies, 2017
Ease of doing business (rank, ^ out of 48 in Africa) World Bank, Doing Business 2018
Dealing with permits (rank, Africa) construction out of 48 in 13 World Bank, Doing Business 2018
Getting electricity (rank, out of _ 48 in Africa) World Bank, Doing Business 2018
Registering property (rank, out .. of 48 in Africa) 11 World Bank, Doing Business 2018
Getting credit (rank, out of 48 g in Africa) World Bank, Doing Business 2018
The rankings for all economies are benchmarked to May 2018. While general business indicators confirm South Africa's strong fundamentals, the development shows a downward trend.
4.7.
Major mining companies
i [19].
Anglo American Diamonds,
platinum, iron ore, thermal coal Private UK
AngloGold Ashanti Gold Private South Africa
Exxaro Coal, ferrous Private South Africa
Glencore Ferroalloys, coal Private UK, Switzerland
Impala Platinum PGM's Private South Africa
Lonmin PGM's Private UK
Rio Tinto Copper, gold, titanium Private UK, Australia
Sibanye Gold Gold Private South Africa
Ivanhoe Mines PGM's, gold, nickel Private Canada
4.8.
Outlook
As the business indicators in the table at the beginning of this section show, South Africa's fundamentals in the mining sector remain strong (with the exception of energy infrastructure). Nevertheless, the mismatch between government expectations and company realities will continue to have a significant impact on the future trajectory of the sector. Numerous producers are planning new mines and plants and capacity expansions of existing operations for andalusite, cement, chromite, coal, copper, diamond, ferrochromium, ferromanganese, ferrovanadium, fluorspar, gold, ilmenite, iron ore, manganese ore, nickel, pig iron, PGMs, phosphate fertilizers, rare-earth elements, rutile, silicomanganese, tin, titanium metal, uranium, vanadium, zinc, zircon, and zirconium metal. Power shortages could constrain mining and mineral-processing expansions until Eskom's new coal-fired Kusile and Medupi power stations are commissioned, particularly in powerintensive industries, such as ferrochromium [20].
Fact Sheets on Mining Sector industry in Southern Africa -Mozambique and South Africa
Silima P.P.
People Friendship University of Russia (PFUR) This paper investigates the fact sheets on mining sector industry in Southern African, particular in Mozambique and South Africa from 2011 - 2017. The fact sheets were analyzed countries overview of this region, political and economic contexts, laws and regulations. As well as mining indicators and trends, the business climate and large mining companies in these countries. In the country overview for the two countries, the study specifies the potential of the natural resources that these two hold in the southern African region and their geographical location, fiscal reforms, the interest of foreign companies, development indicators and the policies implied by Mozambique and South Africa. In addition, the study addresses the political context lived by these two countries after independence, ruling parties and the armed conflict between the Frelimo and Renamo parties in Mozambique. Finally, the study makes reference to the economic context, regulatory laws in the mining industry, the business climate and the largest multinational companies that operating in the mining industry sphere in Mozambique and South Africa. Key words: Mining sector, mining sector in Southern Africa, mining business in Southern African, mining sector in Mozambique, mining sector in South Africa.
References
1. Olavumi, D. A. (2015). Mining and economic growth in South
Africa. Panel data analysis.
2. Virginia Economic Development Partnership, (2014). Mountain
markets in southern Africa.
3. Communications in the mining sector of southern Africa, (2016).
Internal procurement work tasks and contextual working paper.
4. IMF, https://www.imf.org/en/Countries/MOZ, (access date: 03/03/2019).
5. UNTACTADStat, General Profile: Mozambique - General Information for 2017
6. Bank of Mozambique, http://www.bancomoc.mz/Files/REFR/ZMMIREFR.pdf, (Access: 03.03.2019).
7. African Development Bank and African Development Fund,
(2018). Mozambique Country Strategy Paper 2018-2020
8. International Monetary Fund, (2018). Republic of Mozambique:
Consultation-Press Release 2017 Article IV
9. Indices and indicators of human development 1990-2017, http://hdr.undp.org/en/composite/trends, (Access: 03/10/2019).
10. Draft (2017), EITI Independent Administrator Report in Mozambique, December 30, 2017
11. World Mining Data, C. Reichl, M. Schatz, G. Jacques - Volume 33, Mineral Production / Vienna, 2018.
12. World Bank, Doing Business, http://www.doingbusiness.org/en/rankings?region=sub-saharan-africa (access date: 03/08/2019).
13. German Chamber of Commerce and Industry (AHK südliches Afrika), (2016). Mining industry evidence from South African countries, DR Conga, South Africa, Zambia and Zimbabwe.
14. IMF, https://www.imf.org/en/Countries/ZAF (access date: 03/10/2019).
15. Bidvest Bank, https://www.bidvestbank.co.za/personal-banking/forex-services/purchasing-forex/foreign-exchange-rates-south-africa.aspx, (Access - 05/04/2019).
16. UNTACTADStat, General Profile: South Africa - General Information for 2017
17. Bloomberg, (2019). South Africa's economic growth seen as stagnation of confidence, 2019
18. IMF, https://www.imf.org/en/News/Articles/2018/07/27/pr18319-south-africa-imf-executive-board-concludes-2018-article-iv-consultation (Access: 03/10/2019).
19. http://www.doingbusiness.org/en/rankings?region=sub-saharan-africa, [Access: 03/08/2019].
20. The US Geological Survey. (January 2017) Minerals Yearbook 2014. (T.R. Yager, Unit) Mineral industry in South Africa.
X X
o
OD A C.
X
OD
m
o
2 O ho o
