The PwC survey titled Mine – Riding the wave, provides an aggregated view of the global mining industry in 2006, represented by 40 of the world’s largest mining companies.
Some of the highlights from the report
- The impact of hedge funds on the mining industry has been felt dramatically in the last two years, through their involvement in metal trading activities and the volatility this creates in commodity prices.
- With rising commodity prices, acquisitions that are cash funded lead to a rapid payback and 69% of major acquisitions in 2006 were funded this way. Cash is also being used to fund organic growth.
- The lack of good quality projects in “safe” areas is leading to exploration and development efforts in jurisdictions that have until recently been considered marginal.
- The pure “taxes” that governments levy on mining companies are only part of the story. A more accurate picture of the total contribution to government and the community by industry participants needs to emerge for the real position to be understood.
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