Minerals consulting group Venmyn reports that that the most significant challenge to the mining industry currently, from a transaction perspective, is access to funding.

Venmyn director Neil Mc Kenna says that the mining industry is still experiencing tough times and that the last year has been the most challenging in a very long time. 
However, it seems as though the mood is changing and Venmyn remains optimistic about the future of the mining industry.

“Mining, especially in Africa, is seen as a higher-risk sector and many projects have been cancelled or were postponed last year. Funding is currently very expensive and hard to obtain,” says Mc Kenna.

He adds that black economic empowerment (BEE) in South Africa and diverse requirements from various African governments are also challenges facing mining companies.

“BEE and government issues in South Africa have reached a point of maturity and have settled down, but relationships with governments in the rest of Africa will continue to be challenging. 
“Compromises must be reached between mining companies and governments with regard to royalties and rights. If projects are not managed in a sustainable way, government may be compromising good projects,” says Mc Kenna.

He adds that there are many great opportunities in Africa and much to be explored and discovered. 
However, the success of such opportunities relies on the stability of the region.

“While many Central African countries are opening up for investment, stable governments must be established and confidence in the country created,” he asserts.

Other than funding issues, Mc Kenna believes that the value of the mining industry remains on the decline owing to numerous impairments on assets, a challenge that will not be solved overnight. 
Venmyn remains optimistic, but believes that there are still some challenges in the 
future.

He points out that the majority of the 
remaining divisions of the minerals industry are lagging behind the oil and gas industry in terms of technological advancements. 
This is a consequence, principally, of a lack of funding and fundamental research in the greater minerals industry. 
The oil and gas industry dedicates significant sums of money a year towards research and technology.
Mc Kenna believes that more emphasis should be placed on new geophysics techniques for regional exploration.

In an effort to positively influence the 
industry and stay in touch with the latest 
research, Venmyn is involved in training in association with the University of Pretoria.

“The responsibility for research currently lies principally with universities. 
“There has unfortunately been a significant reduction in fundamental research done by big corporate companies owing to a lack of funding and recent efforts at reducing ‘overheads’,” says Mc Kenna.

Venmyn was established in an effort to bridge the gap between the technical and the financial spheres in the mining industry. 

The company is active in Africa, with 80% of its work on the continent.