Global mine bulletin: April 2009

The 2008 calendar year was a remarkable year for financial markets and also for the mining industry. Our recently released PwC Mining deals publication highlights the impact that 2008 had on mining transactions – with the latter half of 2008 producing fewer transactions than would normally be expected as uncertainty took hold. Our first story looks at the findings from this publication and suggests that 2009 will see many transactions, but driven by defensive moves rather than the growth of recent years.

This edition of Global mine bulletin highlights a number of reports and surveys recently issued by the PricewaterhouseCoopers global mining team. Junior mine provides analysis of the top 100 mining companies on the TSX-V and highlights the dramatic decline in market value of these companies over the five months between July and November 2008.

In a challenging market, maximising each dollar spent is critical. Our report, Finding cost efficiencies in mining operations through effective value driver modelling , identifies a number of practical ways that companies can maximise the efficiency of their capital and operating expenditure.

Continuing with the same theme, PwC has released its first analysis of the tax contributions that the mining industry makes to governments around the world. The Total tax contribution study of the global mining industry looks beyond income tax payments to analyse other contributions that the industry makes to the prosperity of the countries in which it operates. In short, taxes paid by the industry are massive and not always obvious.

Finally we look at two major pieces of new legislation which impact the industry. Indonesia has released its much anticipated new mining laws and we analyse 'The good, the bad and the ugly' of the new legislation. The German government has also recently launched a revised Guarantee Program which is designed to support the financing of international mining projects that are of strategic importance for the German economy on the basis of long-term offtake contracts.

I trust that you will find this issue informative and useful. I would be pleased to receive any comments or discussion on its contents or feedback on areas you wish to have covered in future editions.


Tim Goldsmith
Global mining leader
PricewaterhouseCoopers

• Email
• Print