With a strong but volatile outlook for the sector, the global mining and metals industry has gone through an important cycle of renewed focus on capital discipline and balance sheet austerity which may have been lacking during the recent China driven commodity boom including some ill-timed acquisitions). Interest is back into the sector from global shareholders, institutional investors, creditors, and private equity. We have seen increased M&A activities both in the small, mid, but also large cap sectors, with investors positioning in strategic assets in expectation for the next cycle of supply deficit as a result from the lack of investments in the past few years in new projects and/or capacity replacement.

The sector will continue to face increased challenges of changing expectations in the maintenance of its social license to operate, skills shortages, effectively executing capital projects and meeting government revenue expectations.