Botswana Mining Report

 Published On: Sep, 2016 |    No of Pages: 56 |  Published By: BMI Mining | Format: PDF
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BMI View: Botswana's mining industry has considerable potential, with sizeable mineral deposits complemented by a stable political climate and supportive regulatory environment.

Latest Updates & Forecasts
-In April 2016, UK-owned diamond exploring company Botswana Diamonds begun drilling at the PL260 and PL21 licences in the Orapa mining province. The company secured exploration rights for the area in 2015 as part of a 50:50 joint venture (JV) with Russian miner, Alrosa. In the same month, the company announced its interim results for the six-month period ending December 31, 2015, reporting a net loss of USD388,000. Botswana Diamonds chairman John Teeling attributed the loss to the current depression in global diamond prices and a lack of investor interest in exploration companies.
-BMI's short-term outlook for Botswana's mining sector remains bearish, though we see production recovering from 2017 as global diamond prices stabilise.
-We have raised our coal price forecasts due to a more aggressive contraction in global mine production
than we anticipated, predominately in China. We now forecast Newcastle coal to average USD53.0/tonne
in 2016 (previously USD51.0/tonne) and USD57.0/tonne in 2017 tonne (previously USD52.0/tonne)
(see: 'Thermal Coal: Upward Revision On Supply Curbs', June 23 2016).
-In March 2016, the CEO of state-owned Botswana Oil Company, Willie Mokgatlhe, said that the company was exploring opportunities for coal beneficiation. The move would see the government start to leverage the country's considerable coal reserves by converting them into liquid energy products.
-Although Sub-Saharan Africa (SSA)'s coal production growth will remain positive, low coal prices will reduce the sector's overall investment attractiveness, limiting new projects coming online. In 2016, SSA will produce 270mn tonnes (mnt) of coal, accounting for 3.7% of global coal production. We expect SSA's share to increase marginally to 3.8% by 2020 on the back of a number of new projects coming online.

BMI Industry View . 7
Table: Botswana Mining Industry Value Forecast (2015-2020) . . . 7
SWOT .. 8
Industry Forecast 10
Diamond: Investment To Grow, Despite Low Prices ....... 10
Table: Mining Industry Forecasts (Botswana 2012-2020) . . . 10
Table: Botswana - Main Diamond Projects . . . 13
Coal: Government Recognising Industry's Potential ....... 14
Table: Coal Production (Botswana 2012-2020) . . . . 14
Table: Botswana - Coal Deposits . . . . 16
Industry Risk/Reward Index ... 17
Botswana Risk/Reward Index ....... 17
Rewards ... 17
Risks ........ 17
Africa - Risk/Reward Index 18
Key Takeaways .... 18
Latest Revisions ... 19
Table: Africa - Mining Risk/Reward Indices . . 20
Regulatory Development ........ 21
Commodities Forecast . 22
Commodities Outlook ....... 22
Table: BMI Commodities Price Forecasts 22
Competitive Landscape 24
International & Domestic Key Players ... 24
Table: Africa - Largest Mining companies . . . . 26
Company Profile .. 28
Anglo American .... 28
Table: Select Commodities - Price Forecasts . 29
Table: Anglo American - Key Projects . . . 33
Table: Anglo American - Financial Data . 35
Norilsk Nickel ....... 36
Table: Select Commodities - Price Forecasts . 38
Table: Norilsk Nickel - Key Projects 42
Table: Norilsk Nickel - Key Financial Data . . . 44
Regional Overview ........ 45
Sub-Saharan Africa Overview ...... 45
Table: SSA - Government Involvement In Mining Sector . . . . 51
Methodology ........ 53
Industry Forecast Methodology .. 53
Sources .... 54
Risk/Reward Index Methodology . 55
Table: Weighting Of Indicators . 56
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