Prepare now for commodities rebount

African mining will
rebound and players
in the project sector
are advised to
prepare for this now.
This was the message from
industry experts
during a panel
discussion at
the annual
Breakbulk
Africa
conference
recently held in
Johannesburg.
According
to Murray
MacNab,
global director: mining and
mine development for Worley
Parsons, it is not only mining
houses and suppliers that should
be cognisant of this but also
governments.
“Construction has not even
begun on two thirds of the
promised power infrastructure
that should be completed by
2030,” he said. “Mining projects
need infrastructure, power
and good governance. The
bottlenecks
and hiccups
will continue as
long as Africa
continues to face
challenges in
this regard.”
He said while
the drop in
commodity
prices had
significantly
impacted the mining sector there
was a realisation that minerals
and metals would always be in
demand and that the cycle would
turn. Preparing for this cycle in
advance was therefore advisable.
“There are over 50 000 mining
opportunities in Africa right
now. And for every one of those
opportunities there is already
someone looking into it. They are
not going to sit on their hands,”
he said. “Taking into account that
it takes three to five years to build
a mine, it becomes clear why it
is important to invest in projects
now rather than later.”
He said while the drop in
commodity prices had impacted
significantly on the continent it
was not a scenario that would
continue forever.
“Mining is guided by supply
and demand cycles. The outlook
is therefore not just one of doom
and gloom”
He said while it was difficult to
determine when the tide would
turn, estimates were being put at
anything between 18 months and
three years.
“Preparing for the uptake
however is important as mining
projects will always exist.”
INSERT & CAPTION
The tide could turn in
anything between 18
months and three years.
– Murray MacNab