Responding to the resources boom

The global mining and metals sector is faced with the challenge of responding to the rising demand for resources. While deposits are becoming scarcer and harder to locate, new production is being limited by supply chain bottlenecks and skills shortages.

Our Global Mining & Metals Center connects a team of over 1,000 mining and metals industry professionals, including geologists, mining engineers, mineral economists and metallurgists. At the Center, we use our wide experience of working with the world’s largest mining and metals companies to help you to address your key business issues.

This might involve helping you to overcome current sector issues such as rising costs, where we can help you to streamline operational and business processes and improve productivity on key profit drivers.

In this environment of increased sector consolidation, we can assist you with your divestment strategies and the realization of full value at exit. If you are looking to expand your operations to new regions, you can draw on our deep understanding of how to manage operational risks — both political and otherwise.

It’s the support you need to meet the challenges of today — and tomorrow.

IFRS for extractive industries - where is it heading?

In 2004 the International Accounting Standards Board (‘IASB’) started work on a comprehensive long-term project to review the accounting for extractive activities (pdf, 84kb), with the objective of incorporating all accounting aspects of the search for development, and extraction of minerals and oil & gas. In this short paper, we outline our views on each of these projects, including discussion of the relatively limited new developments arising from recent IASB meetings.

Backpedaling on the cycle

The pace of consolidation in the mining industry shows no sign of slowing. Continuing robust levels of metal and mineral prices are fuelling the drive for growth though acquisition. This paper examines how cyclical the sector really is, the challenge of forecasting and what this could mean for the sector going forward.

Is now the time for private equity?

Private equity houses have previously taken little interest in the mining sector, with the industry being perceived as inappropriate for financial purchasers. However, with the ever-increasing buying power available to private equity and the rapidly changing metrics of the mining sector, perhaps it is time for mining to be reconsidered.

Higher commodity prices raising value beyond proven and probable reserves

The second publication in this series discusses how mining and metals companies determine the economic value of the estimated cash flows beyond a mine's proven and probable reserves. We consider this issue specifically in the context of higher than historic average commodity prices (pdf, 237kb).

Global transactions

2008 promises to be a year of mergers and takeovers across the sector. Will your company be one of the hunters or the hunted? Two reports examine the key challenges and issues surrounding deal-making, and in-depth analysis of transaction financing during 2007.

Attitudes to risk in the global mining sector

While risk has always been an inherent part of mining, corporations are continuing to look for more effective ways to deal with risk, in order to obtain the value they have worked so hard to build. Our survey of over 400 top industry leaders offers insight into the increasing demands of risk management (pdf, 748kb).

Strategic business risk 2008

The mining and metals sector is renowned for risk taking, which provides both challenges and opportunities.This paper considers the top 10 strategic business risks facing mining and metals companies (pdf, 131kb), including skills shortages, industry consolidation, climate change concerns and access to secure energy.

To request the full version of this reports, please email the Mining & Metals.

Refining IFRS: functional currency

Our "Refining IFRS" series aims to examine the complex, but unique, issues faced by mining and metals companies applying IFRS. The issues are considered in the context of recent and current developments in the global mining and metals marketplace. The first in the series discusses how mining and metals companies determine their appropriate functional currency (pdf, 225kb) and the impact of their selection.

Read more about IFRS.

The most attractive mining capital markets

Most of the major mining and metals companies are now listed in London. Has the city become the new sector capital centre at the expense of the traditional markets? “Where have all the miners gone?” (pdf, 421kb) explores the global mining capital markets and assesses their relative attractiveness in the age of consolidation.