Mining and metals: a new landscape emerges - Ernst & Young - China

Looking for value in volatility, we look at the major trends in transactions and financing in 2011 and the outlook for 2012 from a commodity and regional perspective.
Appetite for mining deals in 1Q 2012 remains strong, despite volatility.

Growth in steelmaking capacity still exceeds demand, with significant over-capacity putting pressure on operators’ profitability. Discover the significant challenges for this sector, how steelmakers can compete for growth and the outlook for 2012.

Mining and metals companies have stronger balance sheets and valuations have decreased, potentially increasing M&A opportunities. But M&A decisions are more difficult than ever.

Managing the complexity of major capital projects in today’s landscape has never been more challenging, critical or costly. The report discusses the challenges and risks in capital project execution and the ways of effectively managing these extensive capital projects for successful outcomes.

Exploration has significantly lagged domestic demand growth for minerals in India, and this activity needs to pick up pace. The challenges are surmountable and mining can be a significant contributor to the socio-economic development of vast mineral rich districts of India. The paper explores the challenges and opportunities of exploration in this growing market.

Our report reveals that the top three global business risks for mining and metals in 2011 and 2012 are resource nationalism, skills shortage and infrastructure access. What are the other risks rounding out our top 10 list? Find out in our annual report.