This week in mining is about ups and downs. Taking a hit is South African mining and the core earnings of Acacia Mining suffer, while exploration may experience budget restrictions. Conversely, the upturn has Mexican mining investment forecasted to increase up to US$1 billion and the industry is leaders in M&As in the country.
In this week’s Interview of the Week, Mexico Mining Review, Gregory Beischer, CEO of Millrock Resources spoke about exploration projects and mineral concessions in Mexico. With investors still hesitant to invest in risky projects including exploration, how is Millrock funding its activities? Find out here!
Taking the Downturn:
Mining GPD in South Africa is faltering as only a quarter of its gold mines are showing profits. While the industry takes the backseat, the financial services sector has grown over 170 percent since 1994.
Acacia Mining’s core earnings shrink in the first two quarters of 2018, mainly due to the impairment of a project and arbitration costs with the Government of Tanzania.
Exploration serves as the backbone of the industry as it ensures the development of new producing mines. But this segment is also the most likely to suffer from budget restrictions during downturns.
Environmental disregard in mine operations causing social unrest in Latin America. Strong institutions and regulations may be the cure.
Rolling the Upturn:
Mining leading M&As in Mexico. 15 companies registered mergers and acquisitions, leading the sector in 2018.
Mining investment on the rise in Mexico. According to CAMIMEX, industry investment is expected to grow by US$1 billion in 2018, to a yearly total of US$5.3 billion compared to the US$4.3 billion in 2017.
Zimbabwe, the mining giant stirring. Government seeks restart of full production.
Labor Conflicts Continue in the World’s Biggest Copper Mine. For more mining news, keep reading!
Pushing for seabed mining to be the new mining, the International Seabed Authority gathers in Jamaica to regulate commercial mining exploration in deep waters.