Finding the Balance

The four biggest challenges facing mining in 2016/2017

The four Challenges:

  1. Market oversupply as big companies continue to produce to drive out competitors
  2. Efficiency and cost cutting - smaller miners will struggle to cut both costs and investments while still remaining viable
  3. Stakeholder demands - there will be increasing difficulty balancing stakeholder demands from shareholders, governments and labourers
  4. Financial challenges - high debt levels are placing companies under greater pressure at a time when they need support the most

Predictions for the mining sector

  • Short to medium term pressure across the sector
  • Consolidation as companies with strong balance sheets take advantage of market pressure on smaller operators
  • Shift in consumer demand as India becomes a more important player

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