Tanzania Mining Report Q4 2016

Date: September 21, 2016
Pages: 47
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: T11D4636455EN

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Includes 3 FREE quarterly updates

BMI View: Tanzania's gold sector will remain pressured by low gold prices, which will discourage production growth over coming years. Beyond our forecast period to 2020, the country's mining sector could diversify as various miners are looking to invest in the country's nickel, coal and uranium resources.

Latest Developments & Structural Trends
  • Tanzania, currently Africa's fourth-largest gold producer, will see modest growth in output due to mine closures and a limited number of projects in the pipeline. Ongoing labour unrest, illegal mining, power shortages and gold price weakness will also temper the sector's production outlook. Acacia Mining (formerly African Barrick Gold) and Resolute Mining have ceased production at two mines due to depleted reserves. Acacia Mining and AngloGold Ashanti have warned about impending job cuts in the north of the country. Given that Tanzania relies upon gold for over 40.0% of its exports, the downturn in the sector is likely to have serious repercussions for the economy as a whole.
  • Despite this, a number of new projects will ensure the country's production growth remains positive over the coming quarters. For instance, CATA Mining's Mara gold mine, the second largest project in the region, following Acacia Mining's North Mara gold mine, is expected to begin production in Q316. The miner has invested over USD54mn to develop the project. Further, Shanta Gold recorded gold production of 24,522 ounces (koz) at its New Luika gold mine in Tanzania in Q315. The record production was benefited from a 33% q-o-q improvement in gold ore grade efficiencies and a 25% increase in tons milled during the quarter.
  • Shanta Gold has laid out a five-year mine plan for its New Luika mine in Tanzania. The new mine plan, which will include underground mining and an ongoing surface mining and tailings recovery project, estimates an average production of 84koz annually over the next five years. An underground extension to the mine will produce 310koz and add USD72mn to the project value. The underground development is estimated to have an up-front cost of USD38mn. Under the plan, the open pit will run until 2018. New Luika is expected to produce a total of 443koz of gold during the 2016-2022 period, of which 310,000oz will be from underground, 133koz from open pit and 19koz from the tailings project.
BMI Industry View
  Table: Tanzania - Mining Industry Value
  Table: Tanzania - Key Mining Projects
Latest Developments & Structural Trends
Industry Forecast
Gold: Growth To Remain Slow
Latest Developments
  Table: Gold Production Forecast (Tanzania 2014-2020)
Structural Trends
Industry Risk Reward Ratings
Tanzania Risk Reward Index
Industry Rewards
Country Rewards
Industry Risks
Country Risks
Africa - Risk/Reward Index
Key Takeaways
Latest Revisions
  Table: Africa - Mining Risk/Reward Index
Regulatory Development
Trade & Investment Risk Analysis
Commodities Forecast
Commodities Outlook
  Table: BMI Commodities Price Forecasts
Competitive Landscape
Key Players
  Table: Tanzania - Main Mining Companies
Company Profile
Barrick Gold - Q4 2016
  Table: Select Commodities - Price Forecasts
Company Strategy
  Table: Barrick Gold - Key Projects
  Table: Barrick Gold - Key Financial Data
  Table: Gold - Operational Highlights, 2015
Regional Overview
Sub-Saharan Africa Overview
  Table: SSA - Government Involvement In Mining Sector
Industry Forecast Methodology
Risk/Reward Index Methodology
  Table: Weighting Of Indicators
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Tanzania Mining Report Q1 2016 US$ 1,295.00 Dec, 2015 · 38 pages
Tanzania Mining Report Q2 2016 US$ 1,295.00 Apr, 2016 · 42 pages
Tanzania Mining Report Q3 2015 US$ 1,295.00 Jul, 2015 · 66 pages
Mining in Tanzania: Business Report 2016 US$ 1,160.00 Feb, 2016 · 50 pages

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