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Cape Town - Despite the unpredictability of the global mining industry, the prospect of hiring more staff is on the cards, according to a survey by Pedersen & Partners.
From the 160 companies surveyed across the sector, 33% indicated that they will be hiring more staff, while 50% said they will maintain their work force.
The results show that:
However, it was not all good news, several small mining firms with market caps below $10m will not survive through the next year, the survey stated.
"Those with proven projects and strong management reputations may be subject to acquisitions or find more fluid funding through private equity, streaming, flow through shares and eventually, some institutional financing."
According to respondents 47% expect mergers and acquisitions to be a part of their growth strategy this year, while 31% said it will be considered for the right opportunity and 22% ruled it out altogether.
The last five years have been a turbulent time for mines with the global recession, operational restructurings, production cuts as well as expenditure reduction. This resulted in flagging confidence in the mining sector.
Mining in SA
The mining sector in South Africa, which is the backbone of the economy, has faced several challenges in recent months, including proposed job cuts, a series of wildcat strikes and the Marikana massacre in which more than 44 people died.
Data released by Statistics South Africa in March showed that total mining production was 3.1% lower in 2012 compared with 2011.
Finance Minister Pravin Gordhan stated in his National Budget speech in February that mine strife resulted in a revenue shortfall of R16.3bn, estimated to be 5.2% of the 2012/13 gross domestic product.
However, Mines Minister Susan Shabangu said in February that the country is committed to a strong mining industry, adding that the industry had grown from 993 mines in 2004 to almost 1 600 mines.
"We will continue to ensure that an enabling environment is created, while at the same time developing an environment that is responsive to the changing global economic environment and the dynamism of the contemporary mining industry," she said.
- Fin24
From the 160 companies surveyed across the sector, 33% indicated that they will be hiring more staff, while 50% said they will maintain their work force.
The results show that:
- 28% indicate they will be hiring new employees,
- 5% indicate they will be bringing back staff that were laid off,
- 50% will maintain their current staffing levels, and
- 15% suggest they will be restructuring.
However, it was not all good news, several small mining firms with market caps below $10m will not survive through the next year, the survey stated.
"Those with proven projects and strong management reputations may be subject to acquisitions or find more fluid funding through private equity, streaming, flow through shares and eventually, some institutional financing."
According to respondents 47% expect mergers and acquisitions to be a part of their growth strategy this year, while 31% said it will be considered for the right opportunity and 22% ruled it out altogether.
The last five years have been a turbulent time for mines with the global recession, operational restructurings, production cuts as well as expenditure reduction. This resulted in flagging confidence in the mining sector.
Mining in SA
The mining sector in South Africa, which is the backbone of the economy, has faced several challenges in recent months, including proposed job cuts, a series of wildcat strikes and the Marikana massacre in which more than 44 people died.
Data released by Statistics South Africa in March showed that total mining production was 3.1% lower in 2012 compared with 2011.
Finance Minister Pravin Gordhan stated in his National Budget speech in February that mine strife resulted in a revenue shortfall of R16.3bn, estimated to be 5.2% of the 2012/13 gross domestic product.
However, Mines Minister Susan Shabangu said in February that the country is committed to a strong mining industry, adding that the industry had grown from 993 mines in 2004 to almost 1 600 mines.
"We will continue to ensure that an enabling environment is created, while at the same time developing an environment that is responsive to the changing global economic environment and the dynamism of the contemporary mining industry," she said.
- Fin24
