Mining.com The global mining industry saw a record number of mining merger and
acquisitions (M&A), with over 2,600 deals worth $149 billion in 2011.
PricewaterhouseCoopers have today reported that 2012 will be just as successful
as will be remembered as the year of the "African Renaissance" Despite a
weak macro backdrop and falling commodity prices, 2011 M&A deals volumes in
mining were close to historic highs and values were 33% higher than 2010, says
PwC's Global Mining 2011 Deals Review & 2012 Outlook: On the road again.
Canada led the way in mining deals making, with 30% of all 2011 global mining
acquisitions involving a Canadian buyer, a greater stake than any other one
country. In terms of sectors, gold generated much of the M&A activity, driven in
large part by record cash flows spurred on by the high price of bullion, and the
desire for big producers to seek new supplies. "Buyers were plentiful, bidding
wars ensued and valuations were high, all of which are unexpected in an
environment of resource price erosion," says John Nyholt, Canadian Mining
Deals Leader, PwC African Renaissance According to the report, the global mining
industry will continue to see high M&A volumes and values. One particular region
emerges this year, according to PwC's forecast, as the one that will attract
most deals: Africa. The company predicts that an increasingly friendly investor
climate will prompt an "African Renaissance," characterized by increased
investment into Africa's mining sector. The "top five" resources (gold,
copper, coal, iron ore and silver) are expected to be busy, says the report.
However, it's not likely that M&A valuations in the gold sector will be bid up
to bridge the gap between the price of gold and the price of gold equities.
Click here to read the full report Understanding mining regulations, mining
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