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Appalachia USA Trade MissionSouth Africa, Tanzania, & Kenya
February 18 to March 1, 2019 South Africa, Tanzania, & Kenya
The Appalachian Regional Commission (ARC) invites qualified Appalachian firms to participate in a Trade Mission to South Africa, Tanzania & Kenya, key mining markets! Meeting potential partners face-to-face is crucial to your business expansion internationally. This trade mission gives you access to three key mining markets in two core regions of sub-Saharan Africa in one trip! Let us connect you with the right partners and buyers!
To participate, firms must be located in an Appalachian county. A list of counties is available at www.arc.gov/counties.
Mission Itinerary:Mission includes: all costs for consultancy, appointment setting and local in-country travel to meetingsFebruary 18 - Arrive in Johannesburg, South Africa
February 19 - South Africa Business Orientation Meeting - Company Business Meetings Johannesburg- Group Reception
February 20 - Group Meeting: Chamber of Mines - Company Business Meetings Johannesburg
February 21 - Company Business Meetings JohannesburgFebruary 22 - Company Business Meetings JohannesburgFebruary 23 - Flights to Dar es Salaam (6 hrs)February 24 - Free day - group trip scheduled to Zanzibar February 25 - Tanzania Business Briefing
- Company Business Meetings in Dar es SalaamFebruary 26 - Morning flight to Arusha
- Company Business Meetings in ArushaFebruary 27 - Company Business Meetings in Arusha
- Afternoon flight to Nairobi, KenyaFebruary 28 - Kenya Business Briefing
- Company Business Meetings Nairobi- Group Dinner
March 1 - Company Business Meetings Nairobi
March 2 - Flight return to USA
JOIN US!
This event is sponsored by the Appalachian Regional Commission (ARC) and coordinated by the Southern Alleghenies Planning & Development Commission (SAP&DC).
Tina TaylorSouthern Alleghenies Planning & Development Commission 3 Sheraton DriveAltoona, PA [email protected]
FOR MORE INFORMATION, CONTACT:
Registration deadline: January 11, 2019
Appalachian firms will have the option to travel on a cross-continent mission to two major economic regions, directly in the key economic growth engines of each region: Johannesburg in South Africa which is the largest potential market for mining sector technology in Africa and Dar es Salaam and Nairobi in East Africa which is one of the fastest growning mining economies in Africa.
South Africa has been a world leader in mining for decades. The mining sector accounts for roughly a third of the market capitalization. South Africa is the largest producer and exporter of chromium and vanadium, a leading producer of gold, gem, and diamonds, ferrochromium, platimnum, manganese and synthetic liquid fuels, as well as petrochemicals derived from coal. It also exports coal, cobalt, copper, iron ore, lead, nickel, silver, uranium, zinc and zirconium.
Tanzania is a mineral-rich country. The mining sector accounts for more than 50% of the country's total exports. Tanzania has large coal reserves, natural gas extraction is on the rise, diamonds, nickel, copper, uranium, kaolin, titanium, cobalt and platinum are mined in large amounts. Tanzania also produces a large variety of gemstones including tanzanite which is exclusive to the country.
Kenya while still early in the exploration states of its mineralpotential, there are signs of high mining potential in the country.Kenya already ranks as the 3rd largest producer of soda, ash and 7th in flurospar. With many geophysical surveys underway, expected to spur many exploration projects in anticipation of massive mineral finds. Kenya also offers significant potential for the development of small-scale gold mines and is also known for base metal occurrences including copper, chromite, maganese, and iron ore.
Participation is FREE to Appalachian companies. Companies must provide reporting requirements as noted on the registration page.
Companies are responsible for all travel and personal business-related expenses.
About the Mission!
3 Key Mining Markets wrapped together in one mission!
February 18 to March 1, 2019 South Africa, Tanzania, & Kenya
PARTICIPATION AGREEMENT Attention: Tina Taylor | Fax: 814.949.6505
Deadline to register is January 11, 2019
Please return participation agreement either via fax, mail or email:
SAP&DCAttn: Tina Taylor 3 Sheraton Drive Altoona, PA 16601 [email protected]
As a duly authorized representative of the above-named company, I have read, and I understand and agree to, the following terms necessary to be a participating company in the 2019 Trade Mission to South Africa, Tanzania, & Kenya
> Participating companies must be export ready and located in an Appalachian county. (See www.arc.gov/counties) > Qualified participating companies assume all risks of participation in this mission
> Participants will adhere to the mission program and honor all scheduled business appointments. Participants who cancel after
January 25, 2019 are responsible for costs associated with appointment setting (Est: $5,900 per company)
> Companies are responsible for all travel related costs (hotel, airfare, ground transport, meals, etc.)
> All participating companies must provide general company data at signup and must provide information on results attained
through participation in this trade show to SAP&DC and to their state office. (“Results” are current and future sales, employment, and dealings transacted as an outcome of attending the mission. This information is confidential and will be held in the strictest manner.) By signing this registration form you acknowledge and accept the terms stated above regarding reporting.
Authorized Representative (print) Signature
Title Date
Appalachia USA Trade Mission South Africa, Tanzania & Kenya
COMPANY NAME:
ADDRESS:
CITY: STATE: ZIP:
TELEPHONE: ARC COUNTY:
COMPANY CONTACT: TITLE:
E-MAIL: WEB SITE:
Please check requested market(s):
______ South Africa ______Tanzania ______Kenya ______ All 3 Markets
South Africa: Mining
2018
Zurcom International (Pty) Ltd l 670 Lobelia Street, Moreleta Park, Pretoria, South Africa +27 12 993 0159 l [email protected] l www.zurcom.net
Your market entry gateway to the African continent
Industry Overview
South Africa has been a world leader in mining for decades. The mining sector accounts for roughly a third of the market capitalization of the Johannesburg Stock Exchange, nearly 10% of GDP, and for a significant share of foreign direct investment.
South Africa is well endowed with a considerable mineral resource base, estimated by Citibank at US$2.5 trillion (R25 trillion). Gold reserves total 6000 tonnes, more than 10% of the world total, and exports of gold were worth R65.1bn during 2017, R17.7bn of that total sold locally. Platinum-group metals reserves of 63,000t are more than 90% of the world total. Meanwhile, the local diamond mining sector was the world's sixth largest producer in terms of volume during 2017, producing 9.7 million carats worth US$3.1bn, and exporting 9.9 million carats worth US$1.3bn.
South Africa is the largest producer and exporter of chromium and vanadium, a leading producer of gold, gem diamonds, ferrochromium, platinum, manganese and synthetic liquid fuels, as well as petrochemicals derived from coal. It also exports coal, cobalt, copper, iron ore, lead, nickel, silver uranium, zinc and zirconium.
Trends
Globally, the financial performance of mining companies improved significantly in the last year. This is a trend that has been mirrored by the South African mining sector to a large extent. Iron ore, coal, manganese and chrome have especially performed very well, growing a combined total of at least US$3bn, now accounting for 20% of total market capitalisation.
2018 has seen bulk commodity prices continue to rise from the lows at the beginning of 2016 - a boost to South Africa's mining sector. Total market capitalisation recovered to R482 billion, total revenue has grown, and so has capital expenditure by 22% (the first increase since 2012).
The risk environment in South Africa is not too dissimilar from the global environment. Cost pressures are a lingering concern. But, three global risks are natural disasters, technology and cyber risk, and market competition.
Total mining sales as at May 2018 amounted to R41.78 billion. If this trend continues, mining sales for 2018 are expected to total over R500 billion.
Policies
As at September 2018, the cabinet has approved the third version of the Mining Charter, and has agreed to ask parliament to withdraw changes to mining laws that are an impediment to business. This is widely believed to be paving the way to improve regulatory certainty for investors.
The cabinet has also approved asking parliament to withdraw the long-delayed and problematic bill amending the Mineral & Petroleum Resources Development Act (MPRDA), allowing for the separation of the oil and gas sectors in the act and putting them into their own law. These are all steps crucial to improving the regulatory climate in the mining sector.
Conclusion
Mining has, historically, been crucial to the development of Africa's richest and most advanced economy, and that trend is not likely to change soon. The mining industry adds significant value to the country and its people. Total value created by the entities that disclosed value-added statements increased by 2%, from R171 billion to R174 billion.
References
Business Day: https://www.businesslive.co.za
Market Watch: https://www.marketwatch.com
PwC South Africa: https://www.pwc.co.za
South African Mining: https://www.southafricanmining.com
Stats SA: https://www.statssa.gov.za
Tanzania: Mining
2018
Zurcom International (Pty) Ltd l 670 Lobelia Street, Moreleta Park, Pretoria, South Africa +27 12 993 0159 l [email protected] l www.zurcom.net
Your market entry gateway to the African continent
Industry Overview
Tanzania is a mineral-rich country. The mining sector accounts for more than 50% of the country’s total exports. A large share of exports comes from gold - gold reserves of 45 million ounces generate revenue of over US$1bn billion. At 50t a year, Tanzania is the fourth-largest gold miner in Africa behind South Africa, Mali, and Ghana.
Coal reserves in Tanzania are estimated at 1.9bn t, 25% of which are proven. Coalfields with the highest potential are Ketawaka-Mchuchuma in the Ruhuhu Basin, Ngaka fields in the South-West of Tanzania and Songwe Kiwira fields. In addition, natural gas extraction is on the rise.
Diamonds are also found in significant amounts in Tanzania. Nickel, copper, uranium, kaolin, titanium, cobalt and platinum are also mined in large amounts. Tanzania produces a variety of gemstones, including amethyst, aquamarine, garnet, ruby, sapphire, tourmaline, and tanzanite. Tanzanite is exclusive to the country.
Trends
The processing of raw materials for export in Tanzania (rather than abroad) could increase the skills transfer to local workers. This would add massive value to the wider economy, per à multiplier effect. Spill-over effects for related industries and services, which ultimately could improve the already strong economic outlook, can be expected. Tanzania has seen steady growth rates of about 7% over the past decade, and this trend is forecast to continue, buoyed particularly by a strong mining sector.
The current government has made strides in combating the illegal trade. This will, also, make the mining sector more transparent and profitable.
Policies
Despite concerns raised since last year, regarding the implementation of a series of regulations on the mining sector, Tanzania's mining sector has generally adopted concepts such as good governance, transparency, social license, 'know your client', and even more recently 'tell what you pay '. These are widely accepted and valued practices, from an international perspective.
There is, in fact, greater scrutiny over directors' reports, financial audited accounts, and operational accounts. Stakeholders have the information necessary to challenge governments and mining companies, question the social acceptability of projects and demand greater revenue sharing at the local level. Hence, the adoption, and spirit, of Tanzania's legislations aligns with international norms and global policy and trends.
Therefore, it is more likely that the regulations on mining, combined with the current government's "zero tolerance on corruption" policy, guarantee a conducive mining environment that can foster both profits and development for all stakeholders.
Conclusion
Tanzania has realised a 1.3 per cent GDP growth from its mining sector, attributed to new stringent laws and regulations. Mining now contributes around 4.8 per cent to the GDP, up from 3.5 per cent realised over the years. There remains great potential for mining in Tanzania, and the trend is not expected to slow down in coming years.
Based on Tanzania’s Development Vision 2025 plan, the mining sector is expected to account for 10% of the GDP by that year.
References
All Africa: https://www.allafrica.com
Mining Review Africa: https://www.miningreviewafrica.com
Mondaq: https://www.mondaq.com
Tanzania Invest: https://www.tanzaniainvest.com
Kenya: Mining
2018
Zurcom International (Pty) Ltd l 670 Lobelia Street, Moreleta Park, Pretoria, South Africa +27 12 993 0159 l [email protected] l www.zurcom.net
Your market entry gateway to the African continent
Industry Overview
Although Kenya is still in the early exploration stages of its mineral potential, there are signs of high mining potential. Country-wide geophysical surveys are underway, expected to spur many exploration projects in anticipation of massive mineral finds. Kenya already ranks as the third largest producer of soda ash, and is the seventh largest producer of fluorspar in the world.
Metallic minerals currently produced in the country include titanium, gold and iron ore. Kenya’s limestone mining and cement manufacturing industry is flourishing, and other industrial minerals development opportunities include diatomite, vermiculite, baryte, bentonite, gypsum, graphite. The country also has significant potential for gold production, in particular in the Nyanzan greenstone belts, where artisan mining is rife. Acacia Mining recently defined a maiden resource of 1.31 Moz at 12.1 g/t at the Liranda Corridor.
Kenya also offers significant potential for the development of formal small-scale gold mines - these typically have a higher ratio of jobs created per ounce produced than large-scale mines.
Some base metal occurrences are known in Kenya and exploited on a small scale. These include copper, chromite, manganese, and iron ore deposits. In addition, many parts of Kenya are producing coloured gemstones.
Trends
With exploration underway, and discovery of minerals likely, Kenya will have the capacity to position itself as a regional mining sector hub for Eastern Africa in coming years. Mineral discoveries already made are estimated to
be worth US$62.4b, and will propel Kenya to the list of top 10 countries with rare earth deposits in the world. In addition, the country has the world’s top 6 deposits for niobium. Commercial deposits of coal have been discovered in the north eastern region of the country and are currently under review for potential uses and production. The coal deposits in Kitui are being billed as a source of cheaper energy. The anticipated mining of coal would also free some of the country’s foreign exchange reserves for other purposes.
Policies
The Kenya Ministry of Mining was formed in 2013, to reflect the growing importance of the mining sector, and with a mandate to oversee and spur growth. The Mining Act, implemented in 2016, provides key regulations for the mining sector that have made doing business easier. In so far as the Act applies to minerals, provisions for prospecting, mining, processing, refining, treatment, transport and any dealings in minerals and for related purposes have been made more flexible. Furthermore, the Mineral Right Board was established in 2017 to provide more transparency in the issuance of mining licenses.
Results are already evident. Between 2016 and 2017, Kenya jumped 16 places to position 86 from 102 on the Fraser Institute ‘Most Attractive Global Mining Destinations Index’.
Conclusion
Kenya is working with the McKinsey Institute on a 20-year mining plan that forecasts a potential revenue of US$62.4b. The Kenya Mining Forum has the objective of establishing a robust legal framework, along with transparent processes, in line with Kenya’s budding mining vision. The ultimate goal is to consolidate Kenya’s position as a regional mining hub in order to use the sector as a key driver for socio-economic growth and foreign direct investment.
References
Fraser Institute: https://www.fraserinstitute.org
Kenya Chamber of Mines: https://www.kenyachambermines.com
Kenya Mining Forum: https://www.kenyaminingforum.com
Mining: https://www.mining.com
