South Africa

Mining 

In recent years of excess demand and high commodity prices, mining companies could not extract materials out of the ground quickly enough. lesser attention was paid to cost, with the markets more concerned about scale, volume and project portfolios. today, with unpredictable demand, falling prices, rising costs and increasing geological complexities, profitability has become a far higher priority.

How KPMG can help you throughout the mining asset lifecycle

Mining organizations encounter different challenges throughout the mining asset lifecycle. KPMG’s experienced mining team can assist clients throughout the entire mining asset lifecycle, including from expansion through to closure.

 

Strategy

Organizations need to consider and test their strategies relating to portfolio investment, capital allocation, financing, tax, supply chain, people and stakeholder management.

Growth

The global mining sector is continuing to experience a period of dramatic change, with fluctuating demand, price corrections and rising costs becoming a common theme in this dynamic industry.

Performance

In the face of fluctuating demand and price volatility, mining companies are relentlessly striving to streamline their operations, increase efficiency, improve processes, control costs and enhance profitability.

Compliance

Faced with falling revenues and more competitive macroeconomic environment, governments are seeking ways to manage their finances and interests of its citizens

Sustainability

The mining sector is at the heart of the challenges and the solutions to the sustainable development issues facing an increasingly resource constrained world.

Tax Efficiency

Given the complex layers of local and federal taxation systems, it is important to build taxation into a mining organization’s overall business strategy.

COMMODITY Insights Bulletins

Our key mining commodities include: Copper, Diamond, Gold, Iron Ore, Metallurgical Coal, Nickel, Platinum, Thermal Coal, Uranium and Zinc.

Uranium | Q4 2014 & Q1 2015

The uranium market remains on hold waiting for the right signals. The signals involve a mixture of the speed and extent of Japanese restarts, a potential supply disruption given the limited number of significant uranium producers, a return to historical levels of long term contracting and/or a geopolitical event.

Iron Ore | Q4 2014 & Q1 2015

In the short term, the ongoing surge in low-cost supply –driven by both brownfield mine expansions and productivity improvements – will continue to put pressure on the price of iron ore as it outstrips the increase in demand..

Copper | Q4 2014 & Q1 2015

While prices have rebounded this quarter, downward pressure remains as speculation of a further deceleration of the Chinese economy continues to negatively impact market sentiment.

Platinum | Q4 2014 & Q1 2015

The past six months were even more difficult than anticipated some six months ago. Platinum prices continued downwards to five year lows and consensus prices estimates indicate that 2014 price levels will only be reached in 2017. Thus a challenging two years lay ahead for producers.


Metallurgical Coal | Q2 2014 & Q3 2014

Like many in the industry, I am bullish on the long-term prospects of coal in general. Shorter-term, we are seeing improvements in pricing – albeit not at the levels we’d experienced just a few years ago.

Thermal Coal | Q4 2013 & Q1 2014

With declining thermal coal prices, shifting supply and demand dynamics in the US and Chinese policy developments regarding the usage of coal in the energy mix, sentiment towards the future of thermal coal is negative.

Nickel | Q4 2013 & Q1 2014

The confirmation of the ban of Indonesian ore exports in early January 2014 has helped drive nickel prices higher.

Diamond | Q4 2013 & Q1 2014

Are synthetic diamonds a potential threat?


Events

Mining Indaba 2015

 

Country Guides

Series of guides providing an overview of the mining industry from a geographical, economic and legislative perspective for each country.

Wayne Jansen

Wayne Jansen

Director

+27 (0)11 647 7201

Jacques Erasmus

Jacques Erasmus

Director

+27 (0)11 647 7527

Mining Executive Forum

Executive Forum
The first ever Mining Executive Forum to be held on African soil. This two-day premier event mining executives with opportunities to network with peers and participate in industry-leader driven interactive and informative sessions

Commodity Price Volatility

Commodity Price Volatility
This online tool allows you to compare commodities price data from 2008 to present and see correlation trends within the market.