Mining mergers and acquisitions expected to pick up

Informa Insights

John Gravelle John Gravelle

Following a torrid year for mergers and acquisitions (M&A) in the mining industry, deal activity in the sector is predicted to rise once again, according to a new report from PricewaterhouseCoopers (PwC).

PwC expects mining activity to recover this year as developed economies stabilise and mining companies take a more strategic approach to adding assets.

John Gravelle, global mining leader at PwC, said that the historically low level of M&A deals last year meant mining companies have had to turn to new strategies to survive.

“Many companies looking to buy are eyeing similar commodities in familiar regions where they are already operating,” he explained.

“While overall, the mining sector has experienced short-term pain for what could be longer-term gain. To once again create shareholder value and extend mine life, miners will need to continue to acquire assets.”

In its report, the consulting group highlighted some of the…

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Solutions needed to spur future mining engineering investment

Informa Insights

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Mining engineering investment in Western Australia needs a kick-start, a new report has revealed.

The Chamber of Minerals and Energy of Western Australia (CME) and PricewaterhouseCoopers research found infrastructure spending for the resources industry is vital for the sector’s economic development.

CME director Nicole Roocke said: “The resources sector relies on a range of public and private infrastructure in delivering successful projects and commodities into the market.

“With public sector investment constrained by rising debt levels, it is crucial any impediments to attracting greater private sector investment are understood and addressed by both industry and governments.”

Mining engineering challenges

The report highlighted a number of constraints on WA private sector investment, including:

·      The difficulties in structuring, funding and delivering multi-user projects
·      Investor aversion to demand risk on greenfield schemes
·      Companies’ inability to capture the wider economic benefits of infrastructure investments to make them financially…

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