Boyden: Global Mining: Breaking through the crust to future prosperity

Despite the slow growth in China, the country is still expected to become the world’s largest economy by 2025. China’s size and determination to control more of the production of base metals has led investment in countries such as Peru. In Peru, Chinese backers are behind one third of all Peru’s new mining investments.  According to Boyden’s recent report as the growth in China slows, investors, producers, junior miners and service companies are beginning to look to other countries for opportunity. For example, the significant amount of unrealized potential in the African market is capturing global attention.

With slowing demand from China and prices dropping to the lowest level the commodity has traded since 2004-2005. It would be expected to see cancelled building projects and curtailed production. But this time, the reverse has happened. CEOs are beginning to prioritize projects.

Despite the impact of low commodity prices Boyden finds there is a positive outlook for mining in the next 10 years, based on:

• Major improvements in relationships between miners and host governments; earlier collaboration between services and mining companies; and, sources of investment for junior miners and entrepreneurs.
• Learning and best practice in cost containment, safety, sustainability and corporate governance leading to increased stability, productivity, margins and returns.
• Opportunities in Africa, South America and India, alongside traditional key markets, bringing widespread, long-term economic and social benefits.

The full report is published on Boyden’s website. Read the full report.