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