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Article
Finding the Balance
The four biggest challenges facing mining in 2016/2017
The four Challenges:
- Market oversupply as big companies continue to produce to drive out competitors
- Efficiency and cost cutting - smaller miners will struggle to cut both costs and investments while still remaining viable
- Stakeholder demands - there will be increasing difficulty balancing stakeholder demands from shareholders, governments and labourers
- 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