https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Recommendations RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Embed Video

Tracking the trends 2016 - Are we there yet? (Dec 2015)

Tracking the trends 2016 - Are we there yet? (Dec 2015)

1st December 2015

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Despite predictions and hidden hopes that the mining sector will imminently recover, the industry’s down cycle continues apace. Weak commodity prices, declining grades and a falloff in demand—particularly from China—are exacerbating capital shortages and impelling companies to cut back on their exploration spending.

Yet regulatory mandates, tax burdens and stakeholder expectations remain as high as ever. As a result, miners find themselves caught between the proverbial rock and hard place, uncertain how to extricate themselves from the negative spiral.

Advertisement

In many ways, the industry has come to a crossroads. On the one hand, opportunities still abound. As with previous
down cycles, this one too will come to an end once the spectre of commodity shortfalls becomes reality and demand once again outstrips supply. Forward-thinking companies are preparing for the eventual upswing by strengthening their operational excellence, improving productivity, embracing innovation and adopting transformative technologies.

On the other hand, some changes seem enduring. China’s shifting economic realities could arguably alter global mining market dynamics for years to come. The changing global energy mix will slowly but surely impel miners to reconsider their asset portfolios. And the ever-expanding view of corporate and personal welfare will continue to drive miners to refine their safety programmes and devise more effective stakeholder engagement strategies.

Advertisement

Amid this mutable environment, miners are increasingly asking tough questions: Have the world’s demand factors for commodities irrevocably changed? Do we need new mining approaches? Is the traditional profit model shifting? Can we afford to take out more costs? Is our financing model broken? How can we reduce unsustainable debt levels?

While not all these questions have answers, they need to be asked if miners hope to position for growth in what promises to be an altered future. The companies most likely to succeed are those that relentlessly seek to uncover best practices, reward innovation and take bold actions across the board.

Report by Deloitte

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now