With commodity prices having reached a five-year low, the African mining community is feeling the impact of this downturn, resulting in cuts to investment in even the most resource-rich countries; raising serious concerns over miners’ profits and African governments’ share in royalties and taxes
Mining companies and governments across Africa are at the front line of the investor, labor, mining community and media scrutiny. For at least the past 2 years mining companies have been forced to cut costs and capital aggressively, and dispose of inefficient assets. With the commodities price downturn, mining companies are looking at ways to survive. Against this difficult economic backdrop, great opportunities still exist and the outlook for Africa’s mining sector remains promising but complex. With an abundance of resources, the continent is destined to have a strategic role as a major producer and supplier of several of the world’s most important minerals and metals.
Despite the obvious strain that depressed prices have put on the industry’s bottom line, the current economic backdrop is spurring healthy conversations between contractors and clients about how to make their operations more efficient and optimise capital allocation. Mining companies are still required to invest in building their operations for the future, as the cycle will eventually turn.
Therefore understanding the investment climate and identifying opportunities are vital. Join us at the Mining Resources Networking Dinner on the 29 July 2015 at the Maslow hotel in Johannesburg South Africa, as we discuss with Sello Moloko from Sibanye Gold, Henk de Hoop from Rand Merchant Bank and Mazwi Tunyiswa from IDC to name a few, Africa’s investment climate and opportunities and how mining companies can access capital during this downturn period.