Global mining and metals deal volume down 9%

The Africa Mining Indaba, currently underway at the Cape Town International Convention Centre, has brought together leaders in the mining and metals industry to discuss investment opportunities across the continent for the year ahead. With a focus on mergers, acquisitions, and capital raising, industry experts are optimistic about the potential for growth in 2017. At the event, key players shared their insights and projections for the industry. South Africa's mining minister, Rousa Benzis Jwanig, expressed confidence in the country's mining sector, stating that it has turned a corner and emphasizing the need for action to bring clarity and certainty to the industry. Mark Fujifani, the head of Rango American, echoed this sentiment, dismissing reports of the demise of mining as exaggerated. These positive outlooks were further reinforced by Vickers Porter, the African mining and metals sector leader at EY. Porter highlighted the significant progress made by mining companies in restructuring and reducing costs, allowing them to capitalize on the recent uptick in commodity prices. The industry has witnessed a decrease in global mining and metals deal volume by 9% in 2016, amounting to $44.3 billion. However, Africa has shown robust M&A activity, with growth rates exceeding three times the global average. This trend has been attributed to affordable asset prices and improved valuations, making African investments increasingly attractive to foreign investors. Precious metals like gold have traditionally driven mining activities across the continent, with countries like Mali and Cote d'Ivoire leading the way. However, there is a growing interest in bulk commodities such as copper, coal, and iron ore, driven by economic growth and infrastructure development in African nations. Countries like Nigeria are focusing on developing their domestic mining sector to meet local demand, signaling a shift towards diversified mining activities. The industry is witnessing a shift towards collaborative ecosystems, with mining companies exploring partnerships and joint ventures to leverage strengths and resources collectively. Overall, industry experts and stakeholders are optimistic about the opportunities for growth and collaboration in the Africa mining and metals sector in the coming year.