Australia

Details

  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue
  • Date: 30/08/2012

Mining Insight Series

This series looks at the risks and challenges faced by mining executives and provides insights to assist them to achieve the best possible outcomes.

Mining in Africa – Six keys to success 

There's no doubt about it, Africa is 'hot' as a mining destination for Australian companies looking for continued growth. The relatively untapped Continent is experiencing a renaissance and presents some of the best investment mining opportunities in the world over the years to come. Yet Africa is not one investment destination, but a Continent of 55 countries with vast differences in political, legal and investment structures.

This paper discusses the changing nature of operating models for mining in remote locations, and six keys to success in the vast and varied market landscape of African mining.

 

Key insights

  • Deep and broad community engagement is vital – community groups may not necessarily agree with each other on all issues.
  • Capital is constrained and markets are favouring good management teams with proven ability, as well as operations with an upfront source of cash flow.
  • A detailed plan for skills and knowledge transfer to local communities is vital.
  • Expect to pay for and build the infrastructure required for an operation in a remote location.
  • Local management is critical to success, not from the country’s capital city or from overseas.
  • Know your legal rights regarding the security of your tenure.
  • Resource nationalism needs to factor in the business plan.
  • Labour issues and union militancy are expected to increase.
  • A robust plan for managing facilitation payments should be considered.
 

Mining

KPMG's Mining professionals assist organisations through all stages of the mining project lifecycle, from exploration to production.

Australia-Africa Corridor: Mining and Resources

KPMG's Australia-Africa Corridor
An overview of the Australia-Africa Corridor team, its objectives and the value it can provide to Australian organisations operating in Africa.