Africa

Details

  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue
  • Date: 7/9/2013

Mining

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

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.
Mining in Africa
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This edition of Mining in Africa (Edition 1 2012) 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.
 

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Contact

Contact

Wayne Jansen
Global Head of Mining

Tel: +27 (0)11 647 7201
wayne.jansen@kpmg.co.za

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