Monday, 14 December 2015

Mining: Reaching the highest levels

Mining: Reaching the highest levelsAfrica, which produces more than 60 metal and mineral products, has a huge prospective with respect to mineral reserves exploration and production. The continent hosts about 30% of the world’s total mineral reserves and even a higher portion of deposits of diamonds, vanadium, manganese, platinum, cobalt and gold. Investors are in quest of extension to the new markets particularly in the developing world, which presents a new investment frontier for leading mining firms.

In this context, the African mining industry is offering supreme opportunities for both local and international investors. Regardless of the momentous amounts of mineral resources held by the continent, Africa’s production signifies only about 8% of the global mineral production. Most of this production is exported in raw form. Thus, in order to unlock its mining potential, Africa should overcome the difficulties that obstruct the development of the industry. Revenues generated from mining can help African economies reinforce their comparative advantage and achieve greater economic diversification. In Africa, infrastructure building is vital for the sustained growth of the mining sector.

Reports by leading global advisories propose that African governments are at present incompetent to meet demand for key infrastructure including rail, ports and energy projects. In response, private participation and investment is being actively fortified and sought after. Many countries in Africa have recently introduced or are working on new mining laws that seek to encourage investment.   These are The first steps towards the formation of a world-class mining industry that has the potential to contribute significantly to economic growth and employment prospects in the region India is just as investmenthungry as China, indicating interest in Africa's mining resources, as well as the continent's flourishing trade and consumer sectors.

In the mining sector, India has established itself with the activities of Coal India Limited (CI L) in Mozambique and South Africa and Vedanta in Zambia. Indian mining companies have also been increasing their occurrence in Africa’s mining industry, and future prospects appear positive with the sector opening up across Sub-Saharan Africa. India’s International Coal Venture Private Ltd (IC VL), which acquired Rio Tinto’s (LON, AS X:RIO ) coal assets in Mozambique a year ago, is planning to boost annual production at its Benga mine from 5.3 million tonnes to 13 million tonnes in the next five years.   Another Indian Mining company, Dharni Sampda Pvt Ltd (DS PL) with experience of over 10 years in the mining industry - operates several mining projects in African Nations through its mining permits at Ivory Coast, Zambia, Niger and Gabon. DS PL has considerable high-grade mineral reserves of Manganese, Uranium, Bauxite, Diamond, Baryte, & Nickel. They are presently involved in mining operations of Manganese, Uranium and Bauxite. DS PL is in the process of vertically integrating its Manganese operations by establishing Ferro Alloy Plants at its manganese mines in Ivory Coast and Zambia.

The Company has within its structure its own geological survey capabilities, analytical services, laboratory network, and technical subdivisions, meaning that the Group owns the full-cycle of teams it needs to enable it to develop its assets quickly, efficiently and cost effectively. Recently, Essel Group, an Indian conglomerate, based in Mumbai, Maharashtra has acquired potash mines in Africa. The licence area is 150 kilometres southeast of the capital city of Asmara. "We have broadened our mining portfolio with the acquisition of key assets in Eritrea. These mines are rich in potash and sylvite deposits," commented Gagan Goel, MD , Essel, Africa. "The Bada licence area offers several significant advantages; along with being a rich source of the mineral itself, its proximity to mass transit points is favourable as well," he added. Read More...


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