Deloitte: Mining innovation is imminent
Source: www.mlr.gov.cn Citation: www.chinamining.com.cn Date: Feb. 27, 2014
Deloitte issued a report named 2014 Trend Tracking recently, which introduced in detail the top ten challenges and development trend mining companies the world would face. It’s reported that mining innovation is imminent and mining firms must change their core business strategies to achieve long-term growth.
The report points out innovative strategies must be taken in order to reduce risks of variation in the industry, enterprises should take more innovative strategies in the financial, security and talents management as well as the relationship among community, government, shareholders ,regulators and other stakeholders.
“High operating costs has taken the top spot of mining industry trend in the past three years. Although enterprises are improving productivity and reducing costs vigorously now, the high cost problem still is controlling the industries.” Phil Hopwood, the co-founder and director in global mining of Deloitte, said, “ Though mining companies can’t change the global trend, they can change the way they manage. Instead of waiting for volatility to cease, enterprises should make use of this opportunity, adopt necessary procedures, technology and thoughts to implement the business evolution and improve enterprise management state in long run consequently.”
“Mining firms should implant innovation gene to their business in order to promote the improvement of the performance, mining companies had better use the remote operation and the core drilling process automation technology and use remote sensing techniques to locate the deposits.” Phil Hopwood added. How to use data for business and company reports for analysis should be the core of ways enterprises think.”
In the light of China’s mining market, Jeremy South, the co-founder and director of merger-advisory unit in Deloitte global mining, said, “The instability of China’s overall demand leads to the fluctuations global in mining market in some ways. But with the constantly advancing of urbanization process in China, promotion in infrastructure spending, progress in scientific & technology and the sustainable growth of GDP will be continued, as a result, China’s demands for key strategic minerals such as copper, metallurgical coal, bauxite, potash and so on, will continue to increase. China still adheres to grasp more supplies, but at the same time, it is sparing no efforts to deal flow channels and internal problems.”
Deloitte predicted that China’s overseas mergers and acquisitions as well as mining investment would be in full swing. Jeremy South said: “ Though there is concern on China’s economic slowdown, the pace of China to promote mining investment will not stop.”
“The buyer and the seller group is changing, China’s overseas investment is no longer confined to the state-owned enterprises. Many mining companies, trading companies and financial investors have intention to invest in overseas projects.” Liu Junlong, the co-head of Deloitte Chinese mining, said. To the Chinese investors, there are many kinds of asset classes and qualities to choose in the market: some enterprises are seeking opportunities actively while others shows a cautious attitude with the hope of a lower price. “ some private companies are in a small scale and they don’t pursue large assets for sale, the trade sponsored by them will appear constantly.” ( Zhou Zhu) (Translated by TLRHVC)
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