Mining in East Africa
East Africa is a significant supplier of rutile (titanium oxide), titanium-iron-oxide mineral ilmenite, gold and zircon. The majority of minerals produced in East Africa are exported for further processing and in 2017, East African countries exported minerals worth US$974.6m, a year-on-year decrease of 9.2%, reflecting a large decrease in Tanzania’s exports. The import of minerals to the region increased by 23% to US$605.8m. A large number of companies are involved in the region’s mining sector, including major companies like Rio Tinto, Barrick Gold and AngloGold Ashanti.
Factors such as a lack of infrastructure and changes to legislation continue to have a significant impact on the performance of East Africa’s mining sector. The performance of the sector is influenced by the selling price of minerals and the cost of production, and rising input costs continue to affect operating margins. Electricity is relatively expensive in most East African countries. The mining sector has been identified by most countries in the region as a potential catalyst for economic development, and there is therefore a determined effort to attract foreign direct investment.
The Mining in East Africa report describes the region, its mining sector, recent developments and factors influencing the industry in the region. There are comprehensive profiles of 40 companies. These include major players involved in East Africa’s mining sector such as Acacia Mining, which owns three gold mines and a number of exploration projects in Tanzania, AngloGold Ashanti, which owns the Geita mine in Tanzania, QIT Madagascar Minerals, which is 80% owned by Rio Tinto and Tinco Investments, Rwanda’s largest tin and tungsten producer.