Central Africa Mining Report Q1 2016
BMI View: Central Africa is starting to leverage its considerable mineral wealth as mining activity expandsacross the region, in countries such as the DRC, Congo-Brazzaville and Cameroon. The region'sconsiderable and largely untapped deposits and high grades are an attractive proposition for internationalmining group, particularly as other locations suffer falling grades and higher operating costs. We seesignificant potential for growth in the extraction of copper, gold, iron ore and other minerals, however,political risks and a lack of adequate infrastructure continue to present considerable challenges tooperators in the region.
A New Stage For Metals Production
As is the case throughout much of Sub-Saharan Africa, much of the mining sector in Central Africa is at anembryonic stage of development. We highlight the region's fledgling iron ore sector which is concentratedin the Democratic Republic of the Congo (DRC), Congo-Brazzaville and Cameroon. The high-qualitygrades and considerable reserves of these countries provide an advantage to miners willing to overlook thesizeable political risks and infrastructure constraints of these countries, particularly given the current lowpriceenvironment for iron ore and other commodities. While much of the early investment into thesemarkets has come from Western investors, many of these hailing from Australia, the UK and NorthAmerica, there is growing interest from Asian companies, including those from China and South Korea, asthey look to secure long-term access to iron ore supplies.
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