The overarching theme for M&A in the mining sector in 2010 is that “no stone is being left unturned” to uncover deal opportunities. In addition to an overall increase in deal volumes, forays into new geographies, diversification of resource bases and an overall return to risk have characterized activity year-to-date 2010.
Going forward, for the remainder of 2010, PwC expects four deal trends to dominate the global mining sector:
1. Intensification of a “global arms race”
2. Private funds to reconsider the mining sector
3. Mining tax to prompt a mild resurgence in Australian deals
4. Currency risk to impact deal structure