The downturn in the mining industry is over and Australia is now seeing an investment boom in this space. Growth in the mining industry overall is slated to be double the pace of the national economy over the next few years. The boom in investment is largely being seen in production, though exploration and maintenance are also seeing an upturn so far in 2018.
Investment strategies have changed over the years – with a broader range of investment going into mining projects, says Paul Flynn, Chief Executive Officer of Whitehaven Coal, speaking ahead of his appearance at the upcoming Energy Mines and Money Australia. “New players are taking ownership of assets – especially foreign owners coming from China, and private equity has also emerged strong as a form of ownership as well as equity into individual mining projects”.
The strength of private equity investment is that it offers greater transparency and lower risk for investors into the mining industry. Simon Klimt, Chief Executive Officer of Royalty Stream Investments, explained how they take a private equity style, high-level approach to their initial screening opportunities when looking at financing projects. These include: strong management team, competitive advantage, exploration potential, clear cash flow, and more. Simon will discuss the changing trends in equity, debt, and alternative finance at the upcoming Energy Mines and Money event in Brisbane alongside other global investors such as Apollo’s Gareth Turner and Denham Capital’s Director Bert Koth.
Bede Boyle, Chairman at MMC Corporate Alliance also commented on the changing nature of the mining industry – a significant change being that private equity firms and US and Indonesian companies are increasingly taking ownership of regional projects. He shared his thoughts about the new industry dynamic that is emerging in Australia. In addition to private equity investment, major divestments in assets from companies like Rio Tinto, Vale, and Anglo American have enabled Australian mining companies and local juniors to strengthen their positions in the market. Mr. Boyle will share his outlook on the export coal industry as well as the overall mining sector at the upcoming event.
Energy, Mines and Money Australia will attract over 500 attendees, showcasing over 40 strategic mineral, coal, oil and gas opportunities, matching projects with global investment throughout a two-day conference and exhibition at the Brisbane Convention & Exhibition Centre from 20-21 June 2018. Supported by the Queensland Government, the programme will examine the trends and forecasts that will shape investment and development for the mining, oil and gas industries moving forward.