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More robust investor programme, thematic conference approach at this year’s Indaba

22nd January 2016

By: Martin Creamer

Creamer Media Editor

  

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A more robust investor programme and a wider but more thematic approach to the conference agenda is being built into this year’s Investing in African Mining Indaba, which the organisers say will especially address the growing interest in infrastructure investments that support new and current mining projects. Insight into the positioning of infrastructure in parallel to mining projects will be a main point of discussion, as is outlined on page 34 of this preview edition.

The JSE is participating in the 2016 Investing in African Mining Indaba to attract new listings and to help potential investors better understand the benefits of gaining access to the JSE’s capital markets. Of the 391 companies listed on what is Africa’s largest stock exchange, 68 are associated with basic resources and comprise mining and industrial metals companies. Of those 68 companies, 36 are dual listed. The basic resources sector contributes 11% – about R1.3-trillion – of the overall JSE market capitalisation of R11.7-trillion, as is outlined on page 74 of this preview edition.

To bolster the presence of North Africa at this year’s Investing in African Mining Indaba, multilateral development finance institution the African Development Bank (AfDB) has collaborated with the organiser to invite as many mining Ministers as possible from the region. Attendance of delegates from the North African Sahel and Mahgreb regions, where companies mine phosphate, iron-ore, marble and gold, has been scant in previous years, notes AfDB African Natural Resources Centre director Sheila Khama on page 52.

In the current climate of low commodity prices, engineering company WorleyParsons on page 92 highlights the need to challenge the status quo through risk-reducing solutions, including the integration of SmartPlant engineering and design processes, already exemplified at two West African plants.

Against the background of decimated mining company valuations, investment firm Commodity Discovery Fund expects improved valuations this year, as outlined on page 30.

A corporate strategy workshop on value creation and business turnaround is planned by Eunomix, with its MD, Claude Baissac, providing insight into the resilience needed to cope with the new norm of lower prices, while taking into account continuing high stakeholder demands and global instability. The workshop will showcase empirical work on the relationship between commodity prices and company performances, as outlined on page 38.

Online auctioneer Clear Asset is launching a platform to facilitate the buying and selling of equipment 24 hours a day, seven days a week, with individual buyers and sellers able to upload their inventory and engage in escrow-supported online negotiation and settlement, as outlined on page 92.

This year’s Investing in African Mining Indaba takes place against the background of global mining stocks having lost $1.4-trillion since 2011, more than the combined value of Apple, Exxon Mobil and Alphabet Inc, according to Bloomberg Business, which reports that its world mining index has dropped to an 11-year low.

This provides a unique opportunity for open-mindedness, innovation and collective action to allow the industry to cope with toughest of circumstances and place itself in good stead to benefit from even the slightest of upturns.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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