Mineral industry of Africa
Encyclopedia
The mineral industry of Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

 is one of the largest mineral industries
Mineral industry
The mineral industry is the branch of industry responsible for the exploitation of minerals from soil deposits. This is achieved by mining , but also by processing plants. Products of mineral industry include various building materials, such as rocks The mineral industry is the branch of industry...

 in the world. Africa is the second biggest continent, with 30 million km² of land, which implies large quantities of resources. For many African countries, mineral exploration
Mineral exploration
Mineral exploration is the process of finding ore to mine. Mineral exploration is a much more intensive, organized and professional form of mineral prospecting and, though it frequently uses the services of prospecting, the process of mineral exploration on the whole is much more involved.-Stages...

 and production constitute significant parts of their economies and remain keys to future economic growth. Africa is richly endowed with mineral reserves and ranks first or second in quantity of world reserves of bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...

, cobalt
Cobalt
Cobalt is a chemical element with symbol Co and atomic number 27. It is found naturally only in chemically combined form. The free element, produced by reductive smelting, is a hard, lustrous, silver-gray metal....

, industrial diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...

, phosphate rock
Phosphorite
Phosphorite, phosphate rock or rock phosphate is a non-detrital sedimentary rock which contains high amounts of phosphate bearing minerals. The phosphate content of phosphorite is at least 15 to 20% which is a large enrichment over the typical sedimentary rock content of less than 0.2%...

, platinum-group metals (PGM)
Platinum in Africa
Platinum, and platinum group metals, in Africa, are produced in Zimbabwe and the Republic of South Africa. Of the multitudes of companies involved in producing platinum group metals in these two countries, these are the principal operators:...

, vermiculite
Vermiculite
Vermiculite is a natural mineral that expands with the application of heat. The expansion process is called exfoliation and it is routinely accomplished in purpose-designed commercial furnaces. Vermiculite is formed by weathering or hydrothermal alteration of biotite or phlogopite...

, and zirconium
Zirconium
Zirconium is a chemical element with the symbol Zr and atomic number 40. The name of zirconium is taken from the mineral zircon. Its atomic mass is 91.224. It is a lustrous, grey-white, strong transition metal that resembles titanium...

.MIA: 2005 Minerals Yearbook. Gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

 mining is Africa's main mining resource.

The Central African Mining and Exploration Company
Central African Mining and Exploration Company
The Central African Mining and Exploration Company was a mining company active in the Katanga Province of the Democratic Republic of the Congo and in other parts of Africa. It was acquired by ENRC in 2009.-Early years:...

 (CAMEC), one of Africa's primary mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...

 enterprises, is criticized for its unregulated environmental impact and minimal social stewardship. In the Spring of 2009, retired British cricket
Cricket
Cricket is a bat-and-ball game played between two teams of 11 players on an oval-shaped field, at the centre of which is a rectangular 22-yard long pitch. One team bats, trying to score as many runs as possible while the other team bowls and fields, trying to dismiss the batsmen and thus limit the...

 player Phil Edmonds
Phil Edmonds
Phil Edmonds is a former English cricketer and a successful, albeit controversial, corporate executive....

' assets were seized by the United Kingdom's
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 government due to CAMEC's illicit association with self-appointed Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...

an President Robert Mugabe
Robert Mugabe
Robert Gabriel Mugabe is the President of Zimbabwe. As one of the leaders of the liberation movement against white-minority rule, he was elected into power in 1980...

.
CAMEC recently sold 95.4% of its shares to the Eurasian Natural Resources Corporation
Eurasian Natural Resources Corporation
Eurasian Natural Resources Corporation PLC is a diversified natural resources company headquartered in London, United Kingdom. It has activities in mining, processing, energy, logistics and marketing....

. It is currently under restructuring and is no longer trading under the CAMEC brand. http://www.ibtimes.co.uk/articles/20091208/enrc-africa-offer-for-camec-has-93-55-acceptance.htm

African mineral reserves rank 1st or 2nd for bauxite, cobalt, diamonds, phosphate rocks, platinum-group metals (PGM), vermiculite, and zirconium. Many other minerals are also present in quantity. The 2005 share of world production from African soil is the following : bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...

 9%; aluminium
Aluminium
Aluminium or aluminum is a silvery white member of the boron group of chemical elements. It has the symbol Al, and its atomic number is 13. It is not soluble in water under normal circumstances....

 5%; chromite
Chromite
Chromite is an iron chromium oxide: FeCr2O4. It is an oxide mineral belonging to the spinel group. Magnesium can substitute for iron in variable amounts as it forms a solid solution with magnesiochromite ; substitution of aluminium occurs leading to hercynite .-Occurrence:Chromite is found in...

 44%; cobalt
Cobalt
Cobalt is a chemical element with symbol Co and atomic number 27. It is found naturally only in chemically combined form. The free element, produced by reductive smelting, is a hard, lustrous, silver-gray metal....

 57%; copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...

 5%; gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

 21%; iron ore 4%; steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

 2%; lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...

 (Pb) 3%; manganese
Manganese
Manganese is a chemical element, designated by the symbol Mn. It has the atomic number 25. It is found as a free element in nature , and in many minerals...

 39%; zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...

 2%; cement
Cement
In the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...

 4%; natural diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...

 46%; graphite
Graphite
The mineral graphite is one of the allotropes of carbon. It was named by Abraham Gottlob Werner in 1789 from the Ancient Greek γράφω , "to draw/write", for its use in pencils, where it is commonly called lead . Unlike diamond , graphite is an electrical conductor, a semimetal...

 2%; phosphate rock 31%; coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

 5%; mineral fuels (including coal) & petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 13%; uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...

 16%.

Organization promoting exports

The mineral industry is an important source of export earnings for many African nations. To promote exports, groups of African countries have formed numerous trade blocs, which included the Common Market for Eastern and Southern Africa
Common Market for Eastern and Southern Africa
The Common Market for Eastern and Southern Africa, is a free trade area with nineteen member states stretching from Libya to Zimbabwe. COMESA formed in December 1994, replacing a Preferential Trade Area which had existed since 1981...

, the Economic and Monetary Community of Central Africa, the Economic Community of Central African States
Economic Community of Central African States
The Economic Community of Central African States is an Economic Community of the African Union for promotion of regional economic co-operation in Central Africa...

, the Economic Community of West African States
Economic Community of West African States
The Economic Community of West African States is a regional group of fifteen West African countries. Founded on 28 May 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region....

, the Mano River Union
Mano River Union
The Mano River Union is an international association established in 1973 between Liberia and Sierra Leone. In 1980, Guinea joined the union. The goal of the Union was to foster economic cooperation among the countries...

, the Southern African Development Community
Southern African Development Community
The Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states...

, and the West African Economic and Monetary Union. Algeria
Algeria
Algeria , officially the People's Democratic Republic of Algeria , also formally referred to as the Democratic and Popular Republic of Algeria, is a country in the Maghreb region of Northwest Africa with Algiers as its capital.In terms of land area, it is the largest country in Africa and the Arab...

, Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....

, and Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

 were members of the Organization of the Petroleum Exporting Countries (OPEC). The African Union
African Union
The African Union is a union consisting of 54 African states. The only all-African state not in the AU is Morocco. Established on 9 July 2002, the AU was formed as a successor to the Organisation of African Unity...

 was formally launched as a successor to the Organization of African Unity in 2002 to accelerate socioeconomic integration and promote peace, security, and stability on the continent.

Key producers

As of 2005, strategic minerals and key producers were:
Diamonds: 46% of the world, divided as: Botswana 35%; Congo (Kinshasa) 34%; South Africa 17%; Angola, 8%.
Gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

: 21% of the world, divided as: South Africa 56%; Ghana, 13%; Tanzania, 10%; and Mali, 8%.
Uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...

: 16% of the world, divided as: Namibia 46%; Niger 44%; South Africa less than 10%.
Bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...

 (for aluminium): 9% of the world, divided as: Guinea 95%; Ghana 5%.
Steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

: 2% of the world, divided as: South Africa 54%; Egypt 32%; Libya 7%; Algeria 6%.
Aluminium
Aluminium
Aluminium or aluminum is a silvery white member of the boron group of chemical elements. It has the symbol Al, and its atomic number is 13. It is not soluble in water under normal circumstances....

: 5% of the world, divided as: South Africa 48%; Mozambique 32%; Egypt 14%.
Copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...

 (mine/refined): 5%/ of the world, divided as : Zambia 65%/77%; South Africa 15%/19% ; Congo (Kinshasa) 13%/0%; Egypt 0%/3%.
Platinum
Platinum
Platinum is a chemical element with the chemical symbol Pt and an atomic number of 78. Its name is derived from the Spanish term platina del Pinto, which is literally translated into "little silver of the Pinto River." It is a dense, malleable, ductile, precious, gray-white transition metal...

/Palladium: 62% of the world, divided as:South Africa 97%/96%.
Coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

: 5% of the world, divided as: South Africa 99%.

Dependence of African countries

Many African countries are highly and dangerously dependent of such exports. Mineral fuels (coal, petroleum) account for more than 90% of the export earnings for: Algeria, Equatorial Guinea
Equatorial Guinea
Equatorial Guinea, officially the Republic of Equatorial Guinea where the capital Malabo is situated.Annobón is the southernmost island of Equatorial Guinea and is situated just south of the equator. Bioko island is the northernmost point of Equatorial Guinea. Between the two islands and to the...

, Libya, and Nigeria. Various minerals account for 80% for Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...

 (led by, in order of value, diamond, copper, nickel, soda ash, and gold), Congo (Brazzaville) (petroleum), Congo (Kinshasa) (diamond, petroleum, cobalt, and copper), Gabon
Gabon
Gabon , officially the Gabonese Republic is a state in west central Africa sharing borders with Equatorial Guinea to the northwest, Cameroon to the north, and with the Republic of the Congo curving around the east and south. The Gulf of Guinea, an arm of the Atlantic Ocean is to the west...

 (petroleum and manganese), Guinea
Guinea
Guinea , officially the Republic of Guinea , is a country in West Africa. Formerly known as French Guinea , it is today sometimes called Guinea-Conakry to distinguish it from its neighbour Guinea-Bissau. Guinea is divided into eight administrative regions and subdivided into thirty-three prefectures...

 (bauxite, alumina, gold, and diamond), Sierra Leone
Sierra Leone
Sierra Leone , officially the Republic of Sierra Leone, is a country in West Africa. It is bordered by Guinea to the north and east, Liberia to the southeast, and the Atlantic Ocean to the west and southwest. Sierra Leone covers a total area of and has an estimated population between 5.4 and 6.4...

 (diamond), and Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...

 (petroleum and gold). Minerals and mineral fuels accounted for more than 50% of the export earnings of Mali
Mali
Mali , officially the Republic of Mali , is a landlocked country in Western Africa. Mali borders Algeria on the north, Niger on the east, Burkina Faso and the Côte d'Ivoire on the south, Guinea on the south-west, and Senegal and Mauritania on the west. Its size is just over 1,240,000 km² with...

 (gold), Mauritania
Mauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...

 (iron ore), Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...

 (aluminium), Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...

 (diamond, uranium, gold, and zinc), and Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....

 (copper and cobalt).

The mineral industry's export make an important part of the African gross income. Ongoing mining projects of more than 1 billion US dollars
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 are taking place in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

 (PGM 69%;gold:31%), Guinea
Guinea
Guinea , officially the Republic of Guinea , is a country in West Africa. Formerly known as French Guinea , it is today sometimes called Guinea-Conakry to distinguish it from its neighbour Guinea-Bissau. Guinea is divided into eight administrative regions and subdivided into thirty-three prefectures...

 (bauxite & aluminium), Madagascar
Madagascar
The Republic of Madagascar is an island country located in the Indian Ocean off the southeastern coast of Africa...

 (nickel), Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...

 (coal), Congo (Kinshasa)
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...

 and Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....

 (cobalt & copper), Nigeria and Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...

 (crude petroleum), Senegal
Senegal
Senegal , officially the Republic of Senegal , is a country in western Africa. It owes its name to the Sénégal River that borders it to the east and north...

 (iron), and many others.

Investment

The Department of Minerals and Energy of the South Africa reported that investment in newly committed precious metals projects in South Africa (that is, those in which funds had already been committed or were being expended) was $8.26 billion in 2005. An additional $9.56 billion was reported for potential precious metals projects in South Africa (that is, feasibility-level projects for which funds had not yet been committed). PGM accounted for 69% of the investment, and gold, 31%. Potential investments in iron ore projects was at least $950 million. Investment in newly committed processed minerals projects amounted to $681 million, and potential processed minerals projects, $584 million.

By 2008, capital expenditure for the heavy mineral sands project at Mandena in Madagascar was expected to total $585 million; at Moma in Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...

, $348 million; and at Kwale
Kwale
Kwale is a small town in Coast Province, Kenya. It is located at around ; 30 km southwest of Mombasa and 15 km inland. It is capital of the Kwale District. The town has an urban population of 4,200 . It is next to the Shimba Hills National Reserve...

 in Kenya, $178 million. By 2010, capital expenditures for bauxite and alumina in Guinea
Guinea
Guinea , officially the Republic of Guinea , is a country in West Africa. Formerly known as French Guinea , it is today sometimes called Guinea-Conakry to distinguish it from its neighbour Guinea-Bissau. Guinea is divided into eight administrative regions and subdivided into thirty-three prefectures...

 were likely to total more than $2.35 billion; nickel in Madagascar, $2.25 billion; and coal in Mozambique, $1 billion. Substantial capital expenditures were also likely for aluminum in Mozambique and South Africa, cobalt and copper
Copper in Africa
Copper is one of the world's most important industrial minerals, and Africa is an important world producer. While output is traditionally dominated by Zambia, South Africa and Katanga Province in the south of the Democratic Republic of the Congo, many African nations contribute to copper...

 in the Democratic Republic of the Congo (Congo-Kinshasa) and Zambia, crude petroleum in Nigeria and Sudan, iron ore in Senegal, and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 in Nigeria.

Legislation

In September 2004, the Eritrea
Eritrea
Eritrea , officially the State of Eritrea, is a country in the Horn of Africa. Eritrea derives it's name from the Greek word Erethria, meaning 'red land'. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast...

n government ordered a halt to all mineral exploration activity in the country while it reviewed the Mining Act. The government suspension was lifted in January 2005. The government increased the maximum possible equity interest that it may hold in a project through an option agreement from 20% to 30%.

Effective February 28, 2005, platinum producers could no longer hold proceeds from Zimbabwean mining activity in foreign accounts to fund exploration and development in that country. The loss of direct access to these earnings may make it more difficult for foreign companies to fund exploration in Zimbabwe.

At the end of 2004, the government of Liberia passed legislation providing for controls on the export, import, and transit of rough diamond. In addition, the government suspended the issuance of all permits for diamond mining and placed a moratorium on alluvial diamond prospecting.

On December 15, 2005, the Parliament of Ghana
Parliament of Ghana
The Parliament of Ghana is the legislative body of the Ghanaian government.-History:Legislative representation in Ghana dates back to 1850, when the country was a British colony. The body, called the Legislative Council, was purely advisory as the Governor exercised all legislative and executive...

 passed a new Minerals and Mining Law
Minerals and Mining Law
The Minerals and Mining Law of 1986 , as amended by the Minerals and Mining Act of 1994 and the minerals and mining bill of 2005 , regulates mining in Ghana. Under the Minerals and Mining Law, mining companies must pay royalties; companies may also pay corporate taxes at standard rates...

 (law number 703). The new law provides for access to mineral rights on a first-come, first-considered basis; a specific time frame within which all applications should be granted; the right for applicants to demand written reasons from the Minister if an application is rejected; the government’s right to acquire land or authorize its occupation and use if the land is required for mining purposes; the establishment of a cadastral system for the administration of mineral rights; the establishment of the permissible range of royalty rates at not less than 3% or more than 6% of total mining revenues; the government’s right to obtain a 10% free-carried interest in mining leases; and the establishment of the period of duration of a mining lease, which is not to exceed 30 years and which may be renewed once for a period not to exceed an additional 30 years.

In South Africa, the Government’s Black Economic Empowerment program required that black ownership of the mining industry reach 15% by 2009 and 26% by 2014. Recent actions to increase black ownership included the acquisition of 20% of Gold Fields
Gold Fields
Gold Fields Limited is a South African gold mining firm, one of the world’s largest, which is listed on both the Johannesburg Stock Exchange and the New York Stock Exchange ....

 by black-owned Mvelaphanda Resources Ltd. by 2009; the transfer of mines held by AngloGold Ashanti
AngloGold Ashanti
AngloGold Ashanti Limited is a global gold mining company. It was formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation.AngloGold Ashanti Limited is now a global gold producer with 21 operations on four continents...

 to black-owned African Rainbow Minerals
African Rainbow Minerals
African Rainbow Minerals is a mining company based in South Africa. Patrice Motsepe is chairman; André Wilkens is CEO.ARM has interests in a wide range of mines, including platinum and PGMs, iron, coal, copper, and gold. ARM's Goedgevonden coalmine near Witbank is a flagship of their joint venture...

; and the acquisition of 30% of Sallies Ltd. by African Renaissance Investments (Pty) Ltd.

Exploration

Exploration activity, as defined by African exploration budgets reported by the MEG, increased to $807 million in 2005 from $572 million in 2004. Africa’s share of the world exploration budget increased slightly to 16.5% in 2005 from 16.1% in 2004. In 2005, the principal mineral targets in Africa were copper, diamond, gold, and PGM
PGM
- Science :* Phosphoglycerate mutase, an enzyme that catalyses step 8 of glycolysis* Platinum group metals, six metallic elements grouped together on the periodic table of the elements- Computing :* Portable graymap, a graphics file format...

.

African countries that experienced the highest levels of exploration activity in 2005 were, in descending order based on the number of exploration sites as compiled by the USGS, South Africa, Burkina Faso
Burkina Faso
Burkina Faso – also known by its short-form name Burkina – is a landlocked country in west Africa. It is surrounded by six countries: Mali to the north, Niger to the east, Benin to the southeast, Togo and Ghana to the south, and Côte d'Ivoire to the southwest.Its size is with an estimated...

, Ghana, and Zambia, but activity took place in a number of other countries. Gold accounted for approximately 51% of reported African exploration projects, diamond accounted for about 14%, copper and PGM each accounted for about 11%, and nickel accounted for 5%. Early stage projects accounted for about 77% of the 2005 activity, and feasibility stage projects accounted for about 12%.

Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

n and Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 junior companies continued to invest time and money to explore Africa. South African companies continued to expend a sizable amount of their exploration resources outside of South Africa.

Commodities

Estimates for production of major mineral commodities for 2005 and beyond have been based upon supply-side assumptions, such as announced plans for increased production/new capacity construction and bankable feasibility studies. The outlook sections are based on projected trends that could affect current (2005) producing facilities and on planned new facilities that operating companies, consortia, or Governments have projected to come online within indicated timeframes. Forward-looking information, which includes estimates of future production, exploration and mine development, cost of capital projects, and timing of the start of operations, are subject to a variety of risks and uncertainties that could cause actual events or results to differ significantly from expected outcomes.

Aluminum, bauxite, and alumina

Production
From 2000 to 2005, African production of refined aluminum increased by 54%. In Mozambique, the Mozal
Mozal
Mozal is the largest aluminium producer in Mozambique and the second-largest in Africa having a total annual production of around 530,000 tonnes. Ownership is BHP Billiton, Mitsubishi Corporation, IFC and the Government of Mozambique...

 smelter was completed in 2000, and the Mozal 2 smelter, in 2003. South Africa’s production increased because of the expansion of the Hillside smelter in December 2003. Output also increased in Cameroon and Egypt. In Ghana, the Valco
Volta Aluminum Company
Volta Aluminum Company, known as Valco, is an aluminium company based in Ghana founded by Kaiser Aluminum and now wholly owned by the government of Ghana. Valco is a joint venture with Alcoa, the major aluminum conglomerate based in the United States. In 1961 Valco invested in the Akosombo Dam...

 smelter was shut down because of droughts that reduced the country’s effective hydropower capacity. South Africa accounted for about 48% of African aluminum output; Mozambique, 32%; and Egypt, 14%. Kenya was the only African producer of secondary refined aluminum. Africa accounted for 5% of the world’s aluminum production in 2005.

African bauxite production declined by about 3% from 2000 to 2005. From 1990 to 2005, Africa’s share of world bauxite production decreased to 9% from 16%. Guinea accounted for about 95% of African bauxite production; Ghana accounted for most of the remainder. In 2005, Guinea was the only African producer of alumina.

Consumption
In 2005, world aluminum consumption amounted to 31.6 million metric tons
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...

 (t) compared with 29.9 t in 2004. African consumption of aluminum increased by 3.4% in 2005. In South Africa, aluminum consumption increased to 374,000 t in 2005 from 342,000 t in 2004.

Outlook
The production of refined aluminum is expected to rise by an average of about 10% per year from 2005 to 2011. The Mozal 3 smelter in Mozambique and the Coega smelter in South Africa are expected to open in mid-2009 and late 2010, respectively. In Cameroon
Cameroon
Cameroon, officially the Republic of Cameroon , is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon's coastline lies on the...

, Alcan Inc. plans to triple production from its smelter by 2010. Aluminum Smelter Co. of Nigeria Ltd. could reopen its smelter at Ikot Abasi by 2009 and reach full capacity by 2011. In Ghana, Alcoa Inc. plans to increase production at the Valco smelter starting in 2006.

African bauxite production was likely to increase by an average of about 10% per year from 2005 to 2011. In Guinea, planned increases in alumina refining capacity of about 5 million metric tons per year in 2008 and 2009 are expected to lead to higher bauxite production. The Sangaredi and the Kamsar refineries are likely to start production in late 2008 and 2009, respectively, and the expansion of the Friguia refinery could be completed in 2009. The reopening of the Sierra Mineral Holdings bauxite mine in 2006 and the restart of mining in the Kambia District in 2010 could increase Sierra Leone’s bauxite production to 2.7 Mt in 2011.

Copper

Production
Africa’s mine production of copper increased by 48% from 2000 to 2005. Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....

 was the leading producer in Africa; the country’s increasing production was attributable to higher output from the Mufulira
Mufulira
Mufulira is a town in the Copperbelt Province of Zambia. It grew up in the 1930s around the site of the Mufulira Copper Mine on its north-western edge...

 and the Nkana Mines and the reopening of the Chambishi Mine. The production increase in Congo (Kinshasa) was mostly attributable to the opening of the Lonshi and the Dikilushi Mines in 2001 and 2002, respectively. South Africa’s output declined because of lower production from the Palabora
Palabora
Palabora Mining Company Limited is a publicly-traded mining company headquartered in Phalaborwa, Limpopo province, South Africa. The company operates a single cluster of open-pit and underground mines producing mainly copper as well as byproducts such as anode slimes, nickel sulphate, sulphuric...

 Mine and the closure of the Maranda Mine in 2004. In 2005, Zambia accounted for 65% of African copper mine production; South Africa, 15%; and Congo (Kinshasa), 13%. Africa’s share of world copper mine production was 5% in 2005 compared with 14% in 1990.

Africa’s refined copper production rose by 40% from 2000 to 2005; increased production from the Bwana Mkubwa and the Mufulira plants in Zambia more than offset lower South African output. In South Africa, production declined because of lower output from the Palabora refinery. In 2005, Zambia accounted for 77% of African refined copper production; South Africa, 19%; and Egypt, 3%. Congo (Kinshasa), which accounted for 37% of continental refined copper output in 1990, had ceased production by 2000. Egypt was the only producer of secondary refined copper; primary production accounted for most African production.

Consumption
In 2005, world refined copper consumption increased to 16.8 Metric tonnes from 16.7 t in 2004; African consumption of copper amounted to about 170,000 t in 2005. South Africa’s consumption declined to 82,000 t in 2005 from 84,000 t in 2004.

Outlook
African copper mine production is expected to rise by an average of about 16% per year from 2005 to 2011. Congo (Kinshasa) could account for about one-half of the increase in output. Nikanor Plc
Nikanor Plc
Nikanor Plc was a copper and cobalt mining company active in Katanga Province, Democratic Republic of the Congo. In January 2008 it was merged into Katanga Mining...

 plans to open the Kananga
Kananga Mine
The Kananga Mine is an open pit copper mine near Kolwezi in Katanga Province, Democratic Republic of the Congo.-Resources:As of September 2007 it was reported that the mine had not been actively mined since March of that year....

 and the Tilwezembe
Tilwezembe
Tilwezembe is an open-pit copper and cobalt mine in Katanga Province of the Democratic Republic of the Congo operated by Katanga Mining, a subsidiary of Glencore.The mine covers an area of ....

 mines in 2006 and 2007, respectively, and to restart production at the Kamoto-Oliveira-Virgule (KOV) Mine in late 2009. Central African Mining and Exploration Company plc (CAMEC) is expected to open a new mine during the first quarter of 2008 and to reach full capacity in 2009. Tenke Mining plans to start the Tenke Fungurume
Tenke Fungurume
The Tenke Fungurume Mine holds one of the world's largest known copper and cobalt resources. The deposits are located within two concessions totaling over in the Katanga Province of the Democratic Republic of Congo .-Ownership:...

 project in late 2008. Anvil Mining
Anvil Mining
Anvil Mining is a copper producer that has been operating in the Democratic Republic of the Congo since 2002.The company headquarters are based in Montreal, Canada.Anvil is listed on the Toronto Stock Exchange and the Australian Stock Exchange....

 Ltd. plans to increase production at Kulu in 2006 and to open the Mutoshi Mine
Mutoshi Mine
Mutoshi Mine is a copper mine in Katanga Province, Democratic Republic of the Congo.As of 2011 it was 70% owned by Anvil Mining and 30% by the state-owned Gecamines.The mine was placed on care and maintenance in late 2008.-Background:...

 in early 2007. Metorex
Metorex
Metorex is a mining company based in Johannesburg, South Africa.It has assets in the Democratic Republic of the Congo , Zambia and elsewhere.A recent takeover bid by the Jinchuan Group of China valued the company at US$1.1 billion.-History:...

 Ltd. is likely to start the Ruashi Tailings project in mid-2006 and the Ruashi Mine in July 2008. Other new sources of production include the Kolwezi Tailings project
Kolwezi tailings project
The Kolwezi tailings project is a major project in the Kolwezi mining area of the Democratic Republic of the Congo to recover copper from the tailings, or processed ore, from mining in the region since the 1950s....

 in 2008 and the Etoile Mine
Etoile Mine
The Etoile Mine is an open-pit copper mine on the outskirts of Lubumbashi in Katanga Province of the Democratic Republic of the Congo .Chemaf owns the license...

 in 2009. The Ruashi Tailings project and the Lonshi Mine
Lonshi Mine
Lonshi Mine is a copper mine in Katanga Province of the Democratic Republic of the Congo, to the southeast of Ndola, Zambia.-Operations:The mine produces high-grade oxide ore that was transported to Zambia for processing at the SX/EW facility in Bwana....

 are expected to be shut down in 2010.

Output is likely to rise sharply in Zambia because of higher production from the Kansanshi Mine in 2006 and the opening of the Chingola and the Lumwana Mines in 2007 and 2009, respectively. Expansions are planned for the Mufulira, the Mufulira South, and the Nkana Mines in 2007.

In Botswana, the Dukwe mine is expected to open in 2009 and to reach full capacity by 2011; production from the Phoenix Mine is likely to triple by 2011. Nevsun Resources
Nevsun Resources
Nevsun Resources Ltd. is a Canadian mining company headquartered in Vancouver, BC. It initially focused on the mining industry in North America; it then shifted its focus to mining in Africa, particularly Eritrea.-Mines:...

 Ltd. plans to start mining from a copper-rich zone at Bisha in Eritrea in 2010. In Mauritania
Mauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...

, the Guelb Moghrein Mine started to produce refined copper in late 2006. South Africa’s production could increase because of the expansion of the Limpopo PGM mine.

The production of refined copper is expected to rise by an average of 17% per year from 2005 to 2011. Zambia’s production is expected to increase because of higher output from the Mufulira refinery and the Bwana Mkubwa and the Kansanshi solvent extraction-electrowinning (SX-EW) plants in 2006, and the Konkola SX-EW plants by 2007. In Congo (Kinshasa), new SX-EW plants could open at the Kolwezi Tailings project
Kolwezi tailings project
The Kolwezi tailings project is a major project in the Kolwezi mining area of the Democratic Republic of the Congo to recover copper from the tailings, or processed ore, from mining in the region since the 1950s....

 and the Mutoshi Mine
Mutoshi Mine
Mutoshi Mine is a copper mine in Katanga Province, Democratic Republic of the Congo.As of 2011 it was 70% owned by Anvil Mining and 30% by the state-owned Gecamines.The mine was placed on care and maintenance in late 2008.-Background:...

 in early 2008, and at the KOV Mine in late 2009. CAMEC also plans to start production at the Luita
Luita
The Luita plant will be the largest copper and cobalt processing plant in Africa, and the largest cobalt facility in the world. It is being built in modules by the Central African Mining and Exploration Company in Katanga Province, Democratic Republic of the Congo.The Luita plant is designed to...

 plant in 2008. Congo (Kinshasa), which did not produce refined copper in 2000, could account for more than 25% of Africa’s refined copper output by 2011.

Gold

Production
Africa’s gold mine production was 522,000 kilograms in 2005, which was a decrease of 14% compared with that of 2000. Production was considerably less than that of 1990 because of the long-term decline in South African production. From 1990 to 2005, Africa’s share of world gold mine production decreased from 32% to about 21%.

In South Africa, the decrease in production since 2000 was broad based, with output declining at the Great Noilgwa, the Driefontein, the Kloof, the Mponeng, the Savuka, and the TauTona Mine Mines. The Ergo, the North West, and the St. Helena Mines have been closed. The decline in Ghana’s production was partially attributable to lower output at the Bibiani Mine. Output also decreased in Zimbabwe.

In Tanzania, production increased in recent years because of the opening of the Geita Mine in 2000; the Bulyanhulu Mine in 2001; the North Mara Mine in 2002; the Buhemba Mine in 2003; and the Tulawaka Mine in 2005. Output increased since 2000 in Mali because of the opening of the Loulo, the Morila
Morila Gold Mine
The Morila Gold Mine is an open-pit gold mine situated 180 km south of Bamako, near the community of Sanso, in the Sikasso Region of Mali. The operation is jointly owned by AngloGold Ashanti and Randgold Resources, who each have an effective holding of 40% through jointly-owned Morila Limited,...

, and the Yatela Mine
Yatela Mine
The Yatela Mine is an open-pit gold mine situated near Yatela, 25 km north of Sadiola, in the Kayes Region of Mali. It is a single-pit operation. Commencing operation in 2001, heap leaching together with carbon-loading is carried out at a rate of approximately 2.9 million tonnes per year...

s. The Mupane and the Samira Hill Mines were opened in Botswana and Niger, respectively; these countries had only artisanal
Artisanal mining
An artisanal miner or small-scale miner is, in effect, a subsistence miner. They are not officially employed by a mining company, but rather work independently, mining or panning for gold using their own resources...

 gold production before 2004.

In 2005, South Africa accounted for 56% of African gold production; Ghana, 13%; Tanzania, 10%; and Mali, 8%. South Africa’s share of continental gold production continued to decline from 89% in 1990 because of rising production costs associated with deeper underground operations and increased production in Ghana, Guinea, Mali, and Tanzania.

Outlook
Gold mine production in Africa is expected to increase by 17% from 2005 to 2009. The long-term decline in South Africa’s production could be reversed because of the expected completion of the Moab Khotsong Mine in 2006, the Dominion Mine in 2007, the Tshepong Decline project in 2008, the Phakisa Shaft in 2009, and the planned expansion of the Masimong Mine in 2010. By 2011, these projects could more than offset the shutdown of the Ergo and the North West Mines in 2005, the planned closure of the Crown Mine in 2009, and lower production from the Great Noligwa, the Kopanang, and the Tau Lekoa Mines.

In Ghana, the outlook is for a substantial increase in output because of the expected opening of the Ahafo Mine in the second half of 2006 and the Akyem Mine in 2008 and higher production from the Chirano and the Wassa Mines. Output is expected to decline at the Bibiani Mine.

Tanzania’s production was likely to rise to 60 t by 2009 with the opening of the Buckreef Mine in 2007 and the Buzwagi Gold Mine
Buzwagi Gold Mine
Buzwagi Gold Mine is an open pit gold mine in the Shinyanga Region of Tanzania, located 6 kilometres southeast from the town of Kahama. It is operated by African Barrick Gold....

 in 2008 and the increased capacity at the North Mara Mine; these increases could more than offset the decreased production at the Geita Mine. Production in Tanzania is expected to decline to 56 t by 2011 because of the planned closure of the Tulawaka Mine in 2010. In Mali, the opening of the Tabakoto Mine in 2006 and the reopening of the Syama Mine in 2008 are likely to be offset by the shutdown of the Yatela Mine in 2007 and lower production at the Morila Mine.

Several African countries that had only artisanal
Artisanal mining
An artisanal miner or small-scale miner is, in effect, a subsistence miner. They are not officially employed by a mining company, but rather work independently, mining or panning for gold using their own resources...

 gold production in 2005 are likely to open large-scale gold mines in the near future. By January 2008, production was expected to start at the Bonikro gold deposit in Côte d'Ivoire. In Mauritania, Rio Narcea Gold Mines Ltd. plans to start production at the Tasiast Mine by mid-2007. The Youga and the Taparko Mines are expected to open in Burkina Faso by 2007 and 2009, respectively. Gold-rich zones in the Bisha Mine in Eritrea are planned to be mined from 2008 to 2010. In Congo (Kinshasa), the Kilo Moto Mine could open in 2009. Sudan’s only large-scale gold mine is expected to shut down in 2010.

Iron and Steel

Production
African production of crude steel increased by 27% from 2000 to 2005. The majority of the increase was attributable to Egypt. South Africa accounted for 54% of regional crude steel production; Egypt, 32%; Libya, 7%; and Algeria, 6%. Africa’s share of world crude steel production amounted to 2% in 2005.

South Africa produced about 7.1 t of hot-rolled steel products in 2005, and Libya, 1.67 t Other African producers of hot-rolled steel products included Algeria, Egypt, Morocco, and Tunisia.

Consumption
Africa accounted for 2% of the world’s finished steel consumption. Africa consumed 18 t of finished steel products in 2005 compared with 17.5 t in 2004 and 15 t in 2000.

Outlook
Crude steel production was expected to rise by an average of about 5% per year from 2005 to 2011. Nigeria, which accounted for less than 1% of African crude steel output in 2005, could increase its share to 10% by 2011 with the opening of the Ajaokuta plant in 2006 and higher production at the Delta plant. In South Africa, the expansion of the Vanderbijlpark plant was scheduled to take place from 2006 to 2009. In Algeria, increased utilization of existing capacity is expected to raise national steel production to 2.5 t by 2011. Production could increase in Zimbabwe as Zimbabwe Iron and Steel Company restores its capacity; improvement in this company’s situation depends upon the restoration of economic and political stability. African consumption of finished steel is expected to rise to 19 t by 2008.

Iron Ore

Production
In 2005, the iron content of ore produced in Africa amounted to 34.8 t compared with 32.1 t in 2000. Higher production from the Sishen and the Thabazimbi Mines in South Africa more than offset lower output in Egypt and Mauritania. South Africa was the leading iron ore producer in Africa and accounted for 72% of continental output; Mauritania, 21%; and Egypt, 5%.

Outlook
The iron content of ore produced in Africa is expected to increase to almost 62 t in 2011. In South Africa, the expansion of the Sishen Mine is likely to be completed in 2009; a further expansion of the mine could be completed by 2011. Production at the Bruce, the King, and the Mokaning Mines (BKM) could start in 2008; a proposed expansion of the mines could be completed in 2010. The opening of BKM would more than offset the expected decline in output from the Beeshok Mine after 2008. The F Faleme iron ore project in Senegal could start production in 2011. In Nigeria, mining is expected to restart at the Ajaybanko and the I Itakpe iron ore deposits in 2006 or 2007 and to reach full production by 2009. Output is also expected to increase in Algeria.

Lead

Production
From 2000 to 2005, African lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...

 mine production decreased by nearly 39%. South Africa’s production declined because of lower production at the Black Mountain Mine and the closure of the Pering Mine in 2003. The decrease in Morocco’s output was attributable to the closure of the Touissit Mine in 2002 and technical problems experienced by Compagnie Minere de Guemassa. In Tunisia, the Bouhabeur and the Fej Lahdoum Mines were closed in 2004, and the Bougrine Mine, in 2005. In Namibia, output increased at the Rosh Pinah Mine. In 2005, Morocco and South Africa accounted for 39% each of African lead mine production, and Namibia, 13%. Africa’s share of the world’s lead mine production was about 3% in 2005.

African production of primary refined lead declined by 45% compared with that of 2000; the decrease may have been attributable to lower lead mine production in Morocco. Production also declined in Algeria. Morocco, which was the leading African producer of primary refined lead, accounted for 88% of continental output.

From 2000 to 2005, Africa’s production of secondary refined lead increased by 34%. South Africa accounted for 86% of African secondary refined lead output; Kenya, Morocco, and Nigeria accounted for the remainder. The share of primary lead in total refined lead production in Africa declined to 35% in 2005 from 64% in 1995 and 72% in 1990.

Consumption
In 2004, world refined lead consumption was about 7.08 t compared with 6.8 Mt in 2003. South African lead consumption increased to 80,700 t in 2004 from 78,700 t in 2003.

Outlook
The decline in African lead mine production is likely to continue, with output expected to decline by 22% from 2005 to 2011. Most of the decrease would be attributable to the closure of the Bougrine Mine in Tunisia in 2005 and the Rosh Pinah Mine in Namibia by 2010. Secondary refined lead production is expected to increase in South Africa in 2006.

Nickel

Production
African mine production of nickel increased by nearly 9% from 2000 to 2005. South Africa accounted for most of the increase in production; output also increased in Botswana and Zimbabwe. The majority of South Africa’s nickel output was a coproduct of PGM mining. Higher South African production was partially attributable to increased output from the Nkomati Mine. In 2005, South Africa accounted for 47% of African nickel mine output; Botswana, 43%; and Zimbabwe, 9%. Minor tonnages of nickel were recovered as a byproduct of cobalt operations in Morocco.

Consumption
In 2004, South Africa’s consumption of nickel increased to 25,000 t from 24,000 t in 2003. The stainless steel industry accounted for most of South Africa’s nickel demand.

Outlook
Nickel mine production is likely to double from 2005 to 2011. The startup of the Ambatovy nickel and cobalt mine in 2009 in Madagascar is expected to account for the majority of the increase. Madagascar, which did not mine nickel in 2005, could have a 33% share of African nickel mine production by 2011. South Africa’s output is expected to nearly double by 2011 because of increased capacity at the Nkomati nickel mine and the Limpopo and the Marikana PGM mines. In Zambia, Albidon Ltd. planned to start production from the Munali project in 2008. Production could increase at the Mimosa PGM mine in Zimbabwe. Botswana’s production is likely to decline because of the closure of the Selebi-Phikwe Mine in 2011 or 2012.

Platinum-Group Metals

Production
From 2000 to 2005, Africa’s production of palladium and platinum increased by 55% and 47%, respectively. South African production increased because of higher output from the Bafokeng, the Impala, the Kroondal, the Marikana, and the Rustenburg Mines, and the opening of the Modikwa Mine in 2002. Production increased in Zimbabwe because of higher output from the Mimosa Mine and the opening of the Ngezi Mine in 2001. South Africa, which was the continent’s dominant producer of PGM in Africa, accounted for 97% and 96% of the production of platinum and palladium, respectively.

Outlook
African mine production of palladium is expected to increase by an average of between 4% and 5% per year from 2005 to 2011, and platinum, by between 3% and 4% per year. In South Africa, the increase is likely to be attributable to the opening of the Mototolo Mine in late 2006 and the Two Rivers Mine in 2007; the expansions of the Marula Mine in 2007 and 2009, the Limpopo Mine in 2007 and 2010, the Rustenburg Mine in 2008, and the Nkomati Mine by the end of 2009; and higher production from the Everest, the Kroondal, the Marikana, and the Modikwa Mines. Higher output in Zimbabwe is likely to result from the expansion of the Mimosa and the Ngezi Mines and the opening of the Unki Mine in 2009.

Zinc

Production
From 2000 to 2005, Africa’s mine production of zinc declined by about 17%. The decrease in Morocco’s output was attributable to technical problems experienced by Compagnie Minere de Guemassa. In South Africa, the closure of the Pering Mine in 2003 and the Maranda Mine in 2004 more than offset higher output from the Black Mountain Mine. I In Tunisia, the Bouhabeur and the F Fej Lahdoum Mines were closed in 2004, and the Bougrine Mine, in 2005. Algerian output declined because of the shutdown of El Abed and the Kherzet Youcef Mines. Namibia’s production increased because of the opening of the Skorpion Mine; production also restarted at Slag Treatment Plant Lubumbashi in Congo (Kinshasa). In 2005, Morocco accounted for 36% of African zinc mine production; Namibia, 32%; South Africa, 15%; and Tunisia, 7%. Africa’s share of world zinc mine production was about 2% in 2005.

African production of zinc metal increased by 85% compared with that of 2000. In Namibia, the Skorpion smelter was opened in 2003. Production declined in Algeria and South Africa. Namibia, which did not produce zinc metal prior to 2003, accounted for 48% of continental zinc metal production in 2005. South Africa’s share declined to 40% in 2005 from 75% in 2000, and Algeria’s share, to 12% from 25%.

Consumption
In 2005, world refined zinc consumption remained nearly unchanged at about 10.3 Mt. South African zinc consumption increased to 103,000 t in 2005 from 91,000 t in 2004.

Outlook
The decline in African zinc mine production was likely to continue, with output declining by 13% from 2005 to 2011. Most of the decrease would be attributable to the closure of the Bougrine Mine in Tunisia in 2005 and the Rosh Pinah Mine in Namibia by 2010. In Congo (Kinshasa), the proposed reopening of the Kipushi Mine and the reprocessing of zinc and germanium tailings near Kolwezi could lead to further increases in production, but whether these projects will be implemented by the end of 2011 is uncertain.

Higher production from the Skorpion smelter in Namibia could increase regional production of zinc metal by nearly 8% by 2007. This increase would more than offset the decreased output expected from the Zincor Mine in South Africa.

Titanium

Titanium mining in Africa has been halted by environmental problems due to the polluting nature of processing rutile, a principal titanium ore.

Diamond

Production
In 2005, Africa’s share of world diamond production, by volume, was 46%. African diamond production increased by nearly 51% in 2005 compared with that of 2000. The increase in output was broadly based, with production rising in Angola, Botswana, Congo (Kinshasa), Ghana, Guinea, Lesotho, Namibia, Sierra Leone, South Africa, and Zimbabwe. Production declined in the Central African Republic and Tanzania.

Congo (Kinshasa) accounted for nearly one-half of the increase in production, by volume. Increased political stability and the Kimberley Process led to higher production by artisanal miners. Sociètè Minièrè de Bakwanga (MIBA) also increased its output and gradual increases in production have also been seen by JFPI Corporation's Diamant International. In addition, Sengamines and Midamines SPRL started mining operations in 2001 and 2005, respectively.

In Botswana, production increased at the Jwaneng, the Letlhakane, and the Orapa Mines, and the Damtshaa Mine was opened. In South Africa, production increased at the Finsch, the Kimberley, the Namaqualand, and the Venetia Mines. In Namibia, higher production was attributable to Namdeb Diamond Corporation (Pty) Ltd.’s increased output. The Murowa Diamond Project commenced production in Zimbabwe in 2004. Botswana accounted for 35% of African diamond output by volume; Congo (Kinshasa), 34%; South Africa, 17%; and Angola, 8%.

In 2005, the global value of rough diamond production amounted to $12.7 billion, of which Africa accounted for about 60%. Botswana accounted for 24% of the value of global rough diamond output; South Africa, 12%; Angola, 11%; Congo (Kinshasa), 8%; and Namibia, 5%.

In November 2002, the Kimberley Process Certification Scheme was established to reduce the trade of conflict diamond, particularly diamond originating from Angola, Congo (Kinshasa), and Sierra Leone. The establishment of the Kimberley Process involved Government officials from more than 50 countries that produced, processed, and imported diamond as well as representatives from the European Union, the World Diamond Council, the African Diamond Council and nongovernmental organizations. As of 2005, the following African countries had met the minimum requirements of the Kimberley Process Certification Scheme: Angola, Botswana, Central African Republic, Congo (Kinshasa), Côte d'Ivoire, Guinea, Lesotho, Mauritius, Namibia, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, and Zimbabwe.

Illicit diamond production controlled by the Kimberley Process focused on Côte d'Ivoire and Liberia in 2005. At the Kimberley Process plenary session held in Moscow in November, the Chair called for action to be taken to help provide technical assistance to countries neighboring Côte d'Ivoire to strengthen controls on diamond trade.

Outlook
The production of rough diamond is expected to increase by an average of nearly 3% per year from 2005 to 2011. In Angola, the Fucauma, the Kamachia-Kamajiku, the Luarica, and the Rio Lapi Garimpo Mines are expected to contribute to higher output. Production could also rise in Congo (Kinshasa) because of the possible expansion of MIBA’s facilities by 2010. European Diamonds plc started production in Lesotho in 2005; the company planned to reach full capacity in 2006. Zimbabwe’s production could increase because of higher production from Murowa. Output is also expected to rise in Namibia and Tanzania because of expansions at mines operated by DeBeers Group.

Phosphate Rock

Production
In 2005, the diphosphorous pentoxide (P2O5) content of African phosphate rock production amounted to about 14.6 Mt compared with 12.5 Mt in 2000. The majority of the increase in output was attributable to higher production by Office Cherifien des Phosphates in Morocco; Egypt’s production also increased. Morocco, which was the leading producer of phosphate rock in Africa, accounted for 60% of continental phosphate rock output in 2004; Tunisia, 16%; and South Africa, 7%.

Outlook
The P2O5 content of African phosphate rock production is expected to remain nearly unchanged through 2011. In Morocco, Office Cherifien des Phosphates could complete an expansion by 2009. Production is expected to decline in Algeria and Tunisia.

Coal

Production
African coal production increased by 9% from 2000 to 2005; most of the increase was attributable to South Africa. The Goedgevonden, the Mafube, and the Isibonelo Mines opened in 2003, 2004, and 2005, respectively, and production increased at a number of other mines. Output also increased in Botswana, Egypt, Malawi, Niger, Swaziland, and Zambia and decreased in Morocco and Zimbabwe. South Africa, which was the dominant coal producer in Africa, accounted for 98% of regional coal output; Zimbabwe, 1%; and others, less than 1%. More than 99% of South Africa’s coal production was bituminous. Africa accounted for about 5% of total world anthracite and bituminous coal production in 2005.

Consumption
Africa accounted for about 3% of world coal consumption in 2005. Within the region, South Africa accounted for 92% of African coal consumption. Nearly 71% of South Africa’s coal production was consumed domestically. From 2000 to 2005, Africa’s consumption of coal increased by about 12%.

Outlook
African coal production is expected to increase by an average of 3% per year from 2005 to 2011. South Africa is likely to be responsible for the majority of the increase; its production could increase to 276 Mt by 2011. Higher output would be attributable to the opening of the Kriel South Mine in 2005, the Forzando South Mine in 2006, the Mooikraal Mine in mid-2007, and the Inyanda Mine in 2008; and the expansions of the Goedgevonden and the Leeuwpan Mines in 2006, the Syferfontein Mine in 2007, the Mafube Mine in 2008, and the Grootegeluk Mine in 2010.

Mozambique is expected to become the second-ranked coal producer in Africa with the development of the Moatize Project in 2010. Botswana is likely to become the third-ranked producer because of the expansion of the Morupule Colliery in 2008 and the start of production at the Mmamabula East project in 2011. In Zimbabwe, output could increase at Hwange Colliery by 2011 if economic and political stability are restored. Production is also expected to rise in Malawi, Nigeria, and Tanzania.

Uranium

Production
In 2005, African uranium mine production increased by 7% compared with that of 2000. Most of the increase was attributable to higher production at the Rossing Mine in Namibia; Niger’s output also increased. South Africa’s production declined because of lower output from gold mines. Namibia accounted for 46% of African uranium production; Niger, 44%; and South Africa, less than 10%. In 1990, Niger’s and South Africa’s shares of continental production were 30% and 27%, respectively. Africa accounted for about 16% of the world’s uranium production in 2005.

Consumption
South Africa was the only regional consumer of uranium in 2005. Africa accounted for less than 1% of the electricity generated worldwide by nuclear power.

Outlook
Continental uranium mine production is expected to rise by 10% per year from 2005 to 2011. Namibia’s uranium production is likely to increase substantially with the opening of the Langer Heinrich Mine in late 2006 and its planned expansion that could be completed by 2010 or 2011. In South Africa, the Dominion mine is expected to open in 2007 and to produce more than 1,800 t/yr of uranium oxide (U3O8) in 2010. AngloGold Ashanti Ltd. plans to increase uranium production from its South African gold mines by 40% by 2009. Paladin Resources Ltd. of Australia plans to produce about 1,500 t/yr of U3O8 from the Kayelekera Project in Malawi starting in the third quarter of 2008.

Oil

In 2005, exported African oil was distributed as: 35% to the EU, 32% to the USA, 10% to China, and 1% of African gas goes to Asia. North African preferentially exporting its oil to western countries : EU 64%; US 18%; all others 18%.

Trade

Africa’s current account surplus amounted to 2.3% of the GDP in 2005; the current account deficit amounted to 0.1% of the GDP in 2004. In 2005, sub-Saharan countries ran an average deficit of 0.6% of the GDP, and countries in the Arab Maghreb Union ran an average surplus of 12.2% of the GDP. Trade surpluses in oil-exporting countries more than offset trade deficits in oil-importing countries.

Oil-importing countries had an average current account deficit of 3.3% of the GDP in 2005, and oil-exporting countries had an average current account surplus of 12.2% of the GDP. Out of 33 African nations for which information was available, 20 countries experienced a decline in their terms of trade from 2002 to 2005 and 13 experienced an improvement. The countries that experienced the worst decline in their terms of trade were oil importers. However, Botswana’s terms of trade improved because higher prices for oil imports were more than offset by higher prices for diamond exports. Similar reasoning held for Mozambique because of higher prices for aluminum; in Niger, for uranium; and in Zambia, for copper.

The average current account deficit for oil-importing countries is expected to increase to 4.1% of the GDP in 2006 and to 3.8% of the GDP in 2007. For oil-exporting countries, the surplus is predicted to rise to 15.4% of the GDP in 2006 and 15.8% of the GDP in 2007. Africa was expected to run a current account surplus of 3.6% of the GDP in 2006 and 4.2% of the GDP in 2007.

In 2004 or 2005, mineral fuels accounted for more than 90% of the export earnings of Algeria, Equatorial Guinea, Libya, and Nigeria. Minerals and mineral fuels accounted for more than 80% of the export earnings of Botswana (led by, in order of value, diamond, copper, nickel, soda ash, and gold), Congo (Brazzaville) (petroleum), Congo (Kinshasa) (diamond, petroleum, cobalt, and copper), Gabon (petroleum and manganese), Guinea (bauxite, alumina, gold, and diamond), Sierra Leone (diamond), and Sudan (petroleum and gold). Minerals and mineral fuels accounted for more than 50% of the export earnings of Mali (gold), Mauritania (iron ore), Mozambique (aluminum), Namibia (diamond, uranium, gold, and zinc), and Zambia (copper and cobalt). Gold was also a significant source of export earnings in Ghana, South Africa, and Tanzania. Diamond was a significant source of export earnings in the Central African Republic and South Africa, as was uranium in Niger.
African Gas
% of production Destination of LNG
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

Algeria 72% Europe 88%
Nigeria 13% USA 11%
Egypt 9% Asia 1%
Libya 6%

Africa’s natural gas exporters included Algeria, which accounted for 72% of the continent’s natural gas exports; Nigeria, 13%, Egypt, 9%, and Libya, 6%. Europe received 91% of African total natural gas exports and was the destination of 95% of Africa’s natural gas exports by pipeline and 88% of Africa’s liquefied natural gas (LNG) exports. The United States received 11% of Africa’s LNG exports, and countries of the Asia and the Pacific region, 1%.

In 2005, Europe received 35% of Africa’s petroleum exports; the United States, 32%; China, 10%; Japan, 2%; and other countries in the Asia and the Pacific region, 12%. West African countries sent 45% of their exports to the United States and 32% to China, Japan, and other countries in the Asia and the Pacific region. North African countries sent 64% of their exports to Europe and 18% to the United States. Intraregional exports to African countries amounted to only 2% of total African petroleum exports.

Intraregional minerals trade was, however, significant for gold. South Africa imported 142,000 kilograms per year of gold mostly from West African countries to supply its gold refinery. A majority of African gold mine production was refined in South Africa prior to export to other regions.

Most of Africa’s copper and PGM production was also exported in refined form. The majority of Africa’s chromite production was processed into ferrochromium prior to export. For other commodities, which included bauxite, colored gemstones, diamond, iron ore, petroleum, and uranium, most of or all the continent’s production was exported prior to downstream processing.

Environment

Deforestation for fuel use and land-intensive agricultural production continued to be a significant environmental issue in many African countries. Other causes of deforestation included artisanal production of gemstones, lime, and sand and gravel. The West African Gas Pipeline
West African Gas Pipeline
The West African Gas Pipeline is a natural gas pipeline to supply gas from Nigeria's Escravos region of Niger Delta area to Benin, Togo and Ghana...

, which is expected to start regularly operate in the end 2008, could help mitigate the effects of deforestation in Benin, Ghana, and Togo and reduce the emissions of greenhouse gases. Currently (2005), natural gas was being flared by Nigeria; in the future, Nigeria expected to export natural gas to Benin, Ghana, and Togo. The Government of Nigeria had committed to ending the flaring of natural gas, which would also lead to decreased pollution.

The use of mercury by artisanal gold miners has led to serious air and water pollution in such African countries as Ghana, Kenya, Mozambique, South Africa, Sudan, Tanzania, and Zimbabwe. The Global Environment Facility, the United Nations Development Programme, and the United Nations Industrial Development Organization began the Global Mercury Project in August 2002 to alleviate these problems. The Global Mercury Project has been providing cleaner technologies and training for miners, conducting health assessments, and helping institute government regulatory capacities.

See also

  • Economy of Africa
    Economy of Africa
    The economy of Africa consists of the trade, industry, and resources of the people of Africa. , approximately 922 million people were living in 54 different countries. Africa is by far the world's poorest inhabited continent...

  • Iron ore in Africa
    Iron ore in Africa
    Iron ore production in Africa is dominated by South Africa, Mauritania and Algeria; Zimbabwe and Morocco produce ore for use within the country. Many countries possess iron ore deposits that are as yet unmined...

  • JFPI Corporation
    JFPI Corporation
    JFPI Corporation is an international closed-end investment and economic empowerment conglomerate based in Africa.While 100% of the shares are owned by private individuals, it is managed by a 53-member Board of Directors, representing each nation contained by Africa.JFPI promotes the growth of...

  • Cement in Africa
    Cement in Africa
    - Angola :* Lobitoo - proposal 2006* Nova Cimangola - state-owned cement company based in Luanda, associated with Scancem and Heidelberg Cement- Cameroon :* Douala - port - cement works* Yaoundé - national capital - cement works...

  • Canadian mining in the Democratic Republic of the Congo
    Canadian mining in the Democratic Republic of the Congo
    This article describes extractive sector companies that are incorporated in Canada and are either currently or previously active in the Democratic Republic of the Congo. It encompasses mining and petroleum companies, both those carrying out commercial, large-scale extraction operations, and junior...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK