Commodities supply shortfall looming following years of underinvestment
Several years of little or no investment in exploring for and developing new mining projects has resulted in the emergence of an impending commodities supply cliffin a number of resource sectors, says professional services firm EY Africa mining and metals transactions leader Quintin Hobbs.
Therefore, he contends that there will need to be more “brave companies” emerging that can break out of the “absolute general madness” of the ‘boom or bust’ mentality to push their boards to unlock funds for the development of new projects to ensure that miners do not miss out on the uptick that is occurring at this point in the commodity price cycle.
“If the minerals sector, broadly, waits for three years or more for the current global economic and political uncertainties to dissipate, they will almost certainly miss out,” Hobbs warns.
With regard to whether there is capital available in the market, Hobbs concedes that securing external sources of capital is difficult. However, he believes that raising capital needs to be done nimbly and creatively.
This story is from the Mining Weekly 17 March 2017 edition of Mining Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the Mining Weekly 17 March 2017 edition of Mining Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Supply Cliff?
Commodities supply shortfall looming following years of underinvestment
Strikes Threaten Coal Sector
If an agreement cannot be reached on the future structure and form of wage nego­tiations in the coal sector, unions have threatened to strike, says Solidarity mining industry deputy general secretary Connie Prinsloo.
Continued Focus On Downstream Development
Continued Focus On Downstream Development
Unrelenting Scourge
Mining fatalities in South Africa rise for first time in decade
Plea For Open Discussion
Diamonds body calls for ‘productive dialogue’ on Kimberley Process reform
Deep Potential
Stillwater deal seen positioning Sibanye as globally competitive mining champion.
Explosive Advantage
Explosives reloading system helping Gold One to reduce mining costs.
Critical Juncture
South Africa’s mining sector at a crossroads, collaborative effort required.
Consulting Engineering's Viability Proportional to Mining's Growth
The consulting engineer-ing industry’s sustain-ability and growth are largely dependent on and proportional to the mining industry’s sustainability and growth respectively, says industry body Consulting Engineers South Africa (Cesa).
Greater Emphasis On Ensuring Sustainability
Engineering expertise can be used to generate socio-economic gains for mining companies, particularly in jurisdictions that are dependent on the finite business of mineral extraction, states global engineering and infrastructure advisory firm Aurecon, an adviser to the African mining sector.
