The Precious Metals Cluster (PMC)
Background
Africa holds the world’s largest natural gold reserves. The continent also accounts for about 20 percent of global gold output, with 33 producing African countries out of 53.
Southern Africa is the region’s leading producer, followed by West, East, Central and North Africa respectively.
South Africa was the world’s largest gold producer until China overtook it in 2007. South Africa still has the largest gold reserves in the world, holding 31 percent of global stocks.
The top 10 gold producers in Africa (South Africa, Ghana, Mali, Tanzania, Guinea, Zimbabwe, Congo-Kinshasa, Ethiopia, Burundi and Sudan, in descending order) account for about 20 percent of world output.
Despite this, the average GDP per capita of this group is only $1,900 due largely to high political and economic instability in several of the countries in it. Of the 10 countries, four (Guinea, Zimbabwe, Congo-Kinshasa and Sudan) are mired in ongoing political or ethnic conflict, often threatening access to gold mines and production.
About the B&M Precious Metals Cluster (PMC)
The B&M Precious Metals Cluster (PMC) is a highly specialized research group of B&M analysts that provides clients with timely analysis on political, economic, security and social developments affecting the production and supply of Gold, Platinum Group Metals (PGMs) and Silver (by all 33 producing countries), and forecasts the impact of these developments on a client’s bottom-line.
The Applications for Business and Investments
PMC analysts help clients incorporate political risk management into their plans for business in Africa, especially at the point of entry and expansion. Our flexible research model and pioneering AfriRisk Index©, the first comparative country risk index modeled to monitor, measure, and forecast political, economic, social, and security risks unique to Africa, can be adapted to track categories of risks prevalent in the African mining sector and pertinent to a client’s investment plans, including the risk of mine expropriation. .
For more information, please contact the Precious Metals Cluster (PMC) directly at pmc@bmconsultancy.net
Precious Metals Cluster Analysts
PMC analysts are experts on the gold, PGMs and silver mining industry as well as on general African politics, history and business, possessing the requisite multinational language skills.
They monitor all developments affecting the sector in Africa, including those occurring within and outside of the continent.
PMC is supported by field research analysts and on-the-ground monitors based in several producing countries, strategically positioned to help our clients navigate and manage the day-to-day political, security and social risks of doing business on the ground in Africa.
The Space
PMC conducts its research on a continental, sub-regional, national, state, provincial, municipal and industry level.
It covers all 33 gold, silver and platinum producing countries individually and collectively as members of various precious metals producers’ unions.
PMC analysts work in close collaboration with B&M’s regional and geographic research groups to provide clients with insightful comparative analysis of the mining sector across multiple regions.
Commodities Covered
Gold
Platinum Group Metals (PMG): Ruthenium, Rhodium, Palladium, Osmium, Iridium and Platinum: Africa (South Africa, Zimbabwe, Botswana & Ethiopia) accounts for 64% of global production.
Silver: Africa (Morocco, South Africa, Congo-Kinshasa, Namibia, Tanzania, Ghana, Sudan & Zimbabwe) accounts for 2% of global production.
Coverage Area (33 Countries)
South Africa
Ghana
Mali
Tanzania
Guinea
Zimbabwe
Democratic Republic of the Congo (Congo-Kinshasa)
Ethiopia
Burundi
Sudan
Namibia
Botswana
Côte d’Ivoire
Uganda
Burkina Faso
Cameroon
Niger
Morocco
Kenya
Senegal
Algeria
Gabon
Equatorial Guinea
Chad
Mozambique
Nigeria
Eritrea
Benin
Liberia
Republic of the Congo (Congo-Brazzaville)
Central African Republic
Madagascar
Rwanda
Common Research Topics
The impact of global gold price fluctuations on political and economic stability in producing countries, particularly those with heavy reliance on gold export revenue.
Economic and political volatility in highly unstable gold producing countries like Zimbabwe, Congo-Kinshasa and Sudan.
The potential of recidivism in gold-producing countries with recent conflicts (i.e. Ethiopia and Burundi).
The impact of Africa’s share of global gold production steadily decreasing. From 1990 to 2006, Africa’s share of world gold mine production decreased to about 21 percent from 32 percent.
For more information, please contact the Precious Metals Cluster (PMC) directly at pmc@bmconsultancy.net |
