Research and Markets: Angola Mining Report Q1 2009

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/6cb58f/angola_mining_repo) has
announced the addition of the "Angola Mining Report Q1 2009" report to their
offering.

This Angola Mining Report provides industry professionals and strategists,
corporate analysts, mining associations, government departments and regulatory
bodies with independent forecasts and competitive intelligence on Angola's
mining industry.

The slump in global commodities prices is likely to have a severe impact on
Angola's mining sector, with producers already beginning to scale back operation
in the country. The diamond sector is likely to be the hardest hit, as demand
falls and prices drop. In January 2009, Russian diamond company Alrosa announced
that it was unlikely to resume exploration at its Catoca venture in Angola in
2009, due to the impact of the global downturn. However, the company has said
that it has no plans to leave Angola. Angola was historically a major producer
of diamonds, iron ore, gold and copper before its independence.

However, the ensuing civil war that disrupted its infrastructure resulted in
significantly slowing the pace of exploitation of its considerable metals and
minerals base. After the end of the 27-year-long conflict, the Angolan mining
industry, along with the economy, is treading towards rapid growth. Angola is
globally the fifth-largest producer of diamonds by value and supplies 7-9% of
the world diamond output. The country hosts intensive diamond reserves,
principally in the provinces of Lunda Norte and Lunda Sul.

The majority of Angola's diamonds comes from alluvial deposits. However,
state-owned mining company Endiama is confident that there could be large-scale
deposits in shafts of volcanic rock throughout the country. South African mining
giant De Beers has invested in a kimberlite concession in northern Angola.
However, mining in kimberlite is both expensive and technically difficult
meaning that Endiama has had to partner with global companies such as De Beers
and BHP Billiton, who have the expertise. Russia's Alrosa also has a partnership
with Endiama.

Companies that wish to explore for diamonds in Angola have to do so in
partnership with state-owned mining firm Endiama, as is stated in Angolan law.
According to the latest reports, the company has around 100 mines throughout the
country that are ready for exploration. Indeed, some market watchers claim that
under 50% of Angola's diamond potential is currently being realised. For
example, of the 61 concessions currently operating in the country, only around
14 are thought to be producing diamonds.

Meanwhile, in line with BMI's expectations, the ruling Movimento Popular de
Liberação de Angola (MPLA) party secured a strong victory in the recent
elections in September, enabling it to extend its stronghold in parliament.
Looking ahead, however, the publisher believes the new government will face a
challenging time as the lifeblood of the Angolan economy - oil revenue - comes
under threat. While Angola has enjoyed double-digit economic growth and booming
oil earnings for the past few years, 2009 will likely prove a less hospitable
macroeconomic environment as global growth slows and oil prices continue to
moderate. This could slow investment in infrastructure and the mining sector.

Industry Forecast Falling consumer spending power is forcing people to cut back
on expensive purchases in the retail market, which is having a negative impact
on global sales of diamonds. Meanwhile, those that are still buying are
trading-down to poorer quality and less expensive diamonds. As a result, the
majority of diamond producers have started to cut production and global
production is estimated to fall from 160mn carats to 120mn in 2009. South
Africa's De Beers, for example, is reported to be decreasing production by as
much as 30% over 2009. Meanwhile, banks are cutting back on loans used by
diamond traders to purchase the stones in countries such as Angola. As a result,
the diamond mining sector in Angola is likely to face a tough year in 2009.

In the longer term, experts still believe there is strong prospective potential
for base metals and gold in the country. Indeed, Angola is set to resume mining
in the Chipindo region in the next two years. Meanwhile, there are reports of
gold reserves being discovered in Southern Huila province. BMI has considered
all these factors and the amount of unexplored deposits in the country and
expects the mining sector to reach a value of US$63.97bn.

Key Topics Covered:

* Executive Summary
* Angola Political SWOT
* Industry Trends And Developments
* Key Projects
* Business Environment
* Global Industry Overview
* Regional Analysis
* Appendices

Companies Mentioned:

* Endiama (Empresa Nacional de Diamantes de Angola),
* Sociedade Mineira de Catoca,
* Sociedade de Desenvolvimento Mineiro,
* ITM Mining

For more information visit
http://www.researchandmarkets.com/research/6cb58f/angola_mining_repo

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2009