Mining services: mind the funding gap
With the fall in commodity prices, slowing project work and equity market weakness, we examine the outlook for the 84 ASX listed mining services companies.
Global Steel Report – 2011 trends, 2012 outlook
Growth in steelmaking capacity still exceeds demand, with significant over-capacity putting pressure on operators’ profitability. We explore the challenges and growth opportunities.
Global mining and metals transactions – 2011 trends, 2012 outlook
M&A and capital raising activity in the mining and metals sector fell in 1H 2012, with coal topping commodities and China activity. Learn more.
African Mining Investment Environment Survey 2011
As Africa embarks on its growth trajectory, the value that lies beneath will be unlocked by investors who understand the environment. Get the facts.
Mining Eye
Get insights from our weekly share index that tracks the combined performance of the top twenty mining companies on AIM by market weight.
Global survey of audit committees
The challenges and expectation of the audit committees, especially in mining and metals, have undergone huge transformation. We explore the implications.
Business risks in mining & metals 2012-2013
Mining and metals businesses face risks that are becoming more extreme and more complex. Learn more to plan ahead.
Fraud and corruption in mining and metals
To meet rising demand, mining and metals companies are operating in territories with increased exposure to corruption. Discover more about this rapidly changing risk environment.
Good Mining guide – model financial statements 2011
An illustrative set of consolidated financial statements, prepared in accordance with IFRS, for Good Mining (International) Limited (Good Mining), a fictitious group.

Mining & Metals

Mining and metals

With a strong but volatile outlook for the sector, the global mining and metals industry is focused on future growth through expanded production, without losing sight of operational efficiency and cost optimization. The sector is also faced with the increased challenges of changing expectations in the maintenance of its social license to operate, skills shortages, effectively executing capital projects and meeting government revenue expectations.

Ernst & Young’s Global Mining & Metals Center brings together a worldwide team of professionals to help you achieve your potential. Based in Sydney, our team is dedicated to offering industry insight and coordinating a network of more than 2,000 mining and metals professionals in 144 countries, who will develop practical alternatives and provide tailored solutions to the issues you face.

Key issues in today’s mining and metals environment include:

Business risks facing the mining and metals sector

Mining and metals businesses face risks that are becoming more extreme and more complex, with resource nationalism, skills shortage and infrastructure as the top three, and the newcomer being sharing the benefits.

While the demand outlook remains strong, the price peaks have passed and so there is a much greater imperative for mining and metals companies to remain nimble and sure-footed in how they manage these fast-changing risks.

Major trends in transactions and financing

Balance sheets are stronger, with many companies faced with the challenging but positive decision of how best to utilize their capital — the dilemma of buy, build or return is back on many boardroom tables.

We can help you to make better and more informed decisions about how to strategically manage capital and implement transactions in the ever-changing mining and metals sector.

Competing for growth in the steel sector

Growth in steelmaking capacity still exceeds demand, with significant over-capacity putting pressure on operators’ profitability. Significant challenges in today’s global steel sector include:

A shift to emerging markets
Growth in market volatility and margin pressure
Lack of operational agility
A need for business models to evolve

Discover the significant challenges for this sector, how steelmakers can compete for growth and the outlook for 2012.

Resource nationalism

Resource nationalism has remained in the top risks facing mining and metals companies for the past five year as seems to be picking up pace as governments seek to transfer even more value from the mining and metals sector.

Many governments around the world have now gone beyond taxation in seeking a greater take from the sector, with a wave of requirements introduced such as mandated beneficiation, export levies and limits on foreign ownership.

We closely follow resource nationalism, how it affects our clients and steps mining and metals companies can take to respond to this risk.

Unique issues faced by mining and metals companies applying IFRS

The refining IFRS series aims to examine the complex, but unique, issues faced by mining and metals companies applying IFRS. These issues will be considered in the context of recent and current developments in the global mining and metals market place.

Our Good Mining Guide is an illustrative set of consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), for Good Mining (International) Limited (Good Mining), a fictitious group of mining companies. Good Mining specifically focuses on IFRS issues and the relevant disclosures as they relate to the mining and metals sector.