Mining & Material Handling | Power
Zambia remains on of the largest copper producers in Africa and is the 7th largest global producer of copper. Copper makes up 70% if the country’s exports and mining in general contributes 12% of the GDP. The mining industry currently accounts for 10% of formal employment.
Mining is the main consumer of energy in the region and influences power infrastructure planning.
The product portfolios of ECMGroup are well geared and positioned to exercise growth opportunities in this market.
Market Insights Zambia
Issues and opportunities:
- Zambia remains a business friendly environment.
- Copper mining will remain the mainstay of Zambia’s mining sector. Zambia copper deposits are high grade averaging around 2-3% compared with the global average of 0.8%
- Zambia’s mining industry is affected by the current global down turn and low commodity prices in turn increases the pressure on operating costs - This is supporting a space for value adding localization and procurement initiatives for the ECM group and its markets in preparation of the anticipated 2018 upturn.
- Zambia’s copper production for 2016 is expected to be around 700 000t per annum rising to one million tonnes in 2018.
- A national energy deficit has been exacerbated by a change in rainfall(climate change). Almost all electricity in the region is supplied from hydroelectric stations. 70% of Zescos (the national energy supplier)energy is consumed by the mines in the extraction of ore and extraction of copper by electrolysis. 20% goes to domestic consumers.In response to the market requirements - ECM has a special focus on the power supply issues. ECM is exploring biomass renewable energy solutions for the industry.
Market Insights DRC
The Mining and Materials Handling Industry is one of the most attractive in Sub-Saharan Africa. This sector continues to grow albeit at a slower rate since the commodities downturn.
- Democratic Republic of Congo copper deposits are higher grade averaging 2-3% where global average is approximately 0.8%
- The vast untapped gold and cobalt reserves are attractive to foreign investment
- Lack of infrastructure (including power) is the greatest challenge and presents opportunities in the heavy equipment and pumps business units of ECM.