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.
- 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.