Mining

Mining companies saw moderate growth in 2010, and the forecast for 2011 is strong as global demand for base and precious metals continues to climb. Prices for these commodities are expected to rise with the demand increase. A return to growth has also seen a shift of focus to more non-traditional mining locations.

Despite these improvements, mining companies continue to face some major challenges for sustainable growth. A rise in demand, from the developing world in particular, has made performance improvement and cost savings key challenges within the industry. The rise of resource nationalism is of major concern to global mining companies. Miners are facing a political landscape that has become more intertwined with operations, resulting in a direct hit to bottom lines. Taxation has become an issue at the forefront of CEOs' minds. Mining companies are also contending with a shortage of skilled workers, particularly in developing markets.

Company transactions picked up dramatically in 2010, and the expectation for 2011 is for a large number of mining deals. There are a number of companies holding significant cash, looking for access to new reserves or expansion into new territories.

Improving safety and reducing the environmental impact will be ongoing goals for the mining industry. "Low-carbon" production of minerals will become increasingly important in the years to come.

PwC delivers a range of services to help mining companies address the many challenges they face today and to help them to prepare for the upturn in the future.

Mining challenges

Recent postings

2012 Gold Price Report
Annually, PwC surveys gold mining companies from around the world, including executives from senior and junior mines. Read our 2012 survey to learn why gold companies’ shares are not keeping pace with gold prices.

Global mining deals 2011 half-year update
In 1H 2011, there were 1,379 deals worth US $71 billion announced, making it the busiest year of M&A in the mining sector’s history. However, PwC believes jittery global equity markets will likely put downward pressure on most mining company valuation for the near term. This does not mean the end of an era of unprecedented global mining M&A, however.

Mine 2011 - Global mining trends
These are interesting times for the mining industry, with increasing scrutiny from governments, customers and other stakeholders. Growing demand for its products, driven by emerging markets, highlights that supply will be the most significant challenge it will face. The shift in balance is a positive one , but it will not be simple and will take some managing.

Global mining tax comparison: Income taxes, mining taxes and mining royalties (Updated Dec. 2010)
This Summary can help in an analysis of taxes in an included country by focusing on the income taxes, mining taxes and royalties applicable in that country.