Kenya is not generally known as a mining investment destination, but recent developments have proven that the country holds significant potential for mineral development and is largely unexplored. Currently the country produces soda ash, fluorspar, cement, coloured gemstones (tsavorite, ruby) and gold among other minerals, the two later mainly from artisan mining activity.
A heavy mineral sands (titanium) operation is being developed in the Coast Province, and there has been a recent increase over the last years of the activity of gold exploration companies. The Government, in partnership with Kenyan Chamber of Mines (KCM) is putting in place a Mining Policy and amending the Mining Act to expedite and accelerate investments in the country's mining industry.
Mining accounts for a very small part of Kenya's annual GDP. Gold is produced primarily by artisanal workers in the west and southwestern parts of the country, on several small greenstone belts. Iron ore is mined from small-localized deposits for use in the domestic manufacture of cement.
Clearly seen as one of the largest potential capital projects in Kenya is the Kwale Hill heavy mineral sands project that is being developed along the country's southeastern coast. This project is considered to be a world-class advanced development project. All approvals, permits and licenses required for development are in place and a full definitive feasibility study has been completed. The Project, which is supported by the Kenyan government, is located just 50km from Mombasa. Other projects include; Mambrui, Kilifi and Vipingo. These projects located along the coast to the north of Mombassa, have a combined JORC compliant mineral resource of 1,388 million tonnes at 3.8% THM.
There is base metal prospect in West Kenya. The project comprises 2,800km squared of the Ndori Greenstone Belt in Kenya, which forms part of the Tanzanian Archaean Craton. Previous exploration in this area has identified significant potential for gold, as well as copper, lead and zinc. The Bumbo prospect in early 2011 confirmed high-grade Cu-Zn-Ag and Au intercepts from diamond drilling. Diamond drilling of five gold targets has already commenced. The first gold target to be tested will be the Kimigini Prospect followed by Bushangala, Viyalo, Barding and Musumbi.
Malawi has potential heavy mineral sand, bauxite, phosphate, uranium and rare earth element deposits.
Malawi has three heavy mineral sand deposits that have had varying amounts of work carried out on them. The Tengani deposit is situated in the south of the country and has estimated reserves of over 108 Mt of heavy minerals, of which ilmenite is the main titaniferous bearing mineral. The Mpyukyu/Kachulu deposit is located within the Lake Chilwa Basin in eastern Malawi. Reserves are estimated at 4.8 Mt ilmenite, 300 000t zircon and 10 000t rutile. The Monkey Bay, Salima and Unga deposits are all beach deposits located along the shores of Lake Malawi. Collectively, these deposits support an appreciable titanium resource.
Several carbonatites have been investigated for potential phosphate, niobium and rare earth potential. The Tundulu carbonatite has been evaluated and has shown potentially economic grades of Niobium, phosphate and rare earth elements.
The Government has embarked on an economic empowerment program aimed at promoting and supporting small-scale mining in areas of import substitution and value-adding services. These programs include gemstone cutting and polishing, gypsum mining and lime production using coal.
Mining activities in Mozambique contribute only 2% to GDP. Currently most of the country's official mineral output is derived from three mining concerns, which include gold, bauxite and graphite. Most of the major projects currently undergoing construction or feasibility studies are focussed on heavy mineral sands, coal, natural gas, downstream aluminium smelters, hot briquetted iron and steel plants.
Mozambique's geology is highly varied and consists mainly of Precambrian terrains (ranging from Archaean to Upper Proterozoic rocks), covered predominantly in the south by Phanerozoic cover (ranging from Jurassic through to Tertiary rocks). Most gemstone, gold, base metal and carbonatite hosted minerals are located in the older Precambrian terranes. The younger cover contains industrial minerals, including coal, alluvial diamonds and heavy mineral sands.
Mozambique has an estimated 50,000 artisanal workers who concentrate on alluvial gold and gemstone workings.
Very little investigations have been made in Mozambique for base metals, although BHP carried out an extensive reconnaissance program over the Niassa, Nampula and Cabo Delgade provinces. The Meluco area in the Cabo Delgade province was considered the most prospective based on geochemical and geophysical surveys completed. Areas close to the Zambian and Malawi borders in the Tete province also have defined base metal potential. The Chidwe and Massamba copper deposits have had little thorough geological investigation in the past.
Rwanda is endowed with rich minerals resources ranging from minerals such as, Cassiterite, Coltan, Wolfram, and Gold. The country is also rich in construction materials such as amphibilite, granites and quartzite, volcanic rocks, clay, sand and gravel.
For the past seven years, the Rwandan economy has benefited enormously from the mining industry. Revenues have increased from $10 million USD in 2003 to $96.4 USD in 2010 and the year 2012 is projected to contribute over $ 100 USD to the Country's GDP. Privatization of the mining sector in 2006, is credited for the growth of the sector.
Tanzania is currently Africa's fourth-largest gold producer. The mining sector continues to attract significant investments from firms largely prospecting for the gold deposits. Gold exports have tripled to $1.5 billion in the last five years, partly because of commodity prices trends, but also due to the influx of fresh capital from mining companies.
The Tanzanian government is the most politically stable government of the region. The government supports foreign investments by international companies in the mining industry. Growth for the 2011/12 financial year in the industry has been projected to rise 7%.
Large mining companies from Tanzania, Canada, South Africa and Australia have all put significant resources into the region to capitalize on the gold deposits that have been found. High prices for the commodity have led to an increase in the exploration trends.
Coal and Iron ore deposits continue to attract foreign investment from the Asia with China being the key players seeking to exploit Coal and iron ore deposits in the country and the region as one economic block.
Over 480 million tonnes of coal reserves are estimated to be at the Mchuchuma project, enough to generate 600MW of electricity of which 300MW will be used to extract iron ore at Liganga and the remaining 300MW will be connected to the national grid. Along with the large deposits of iron and coal, the region is said to hold significant amounts of vanadium and titanium minerals.