Mining and Exploration

Though its mining history may span close to 500 years and counting, Mexico remains a major mineral exploration ground and retains its position amongst the world’s largest metal producers. The country’s rich geology and favourable regulations has made it an epicentre for mining activity, not least it is mountainous northern region, home to the legendary Sierra Madre gold and silver belt. It is here, 220 kilometres west of Chihuahua, where one finds the Pinos Altos mine.

Gold output from its Sukari mine, its only producing asset, totalled 91,546 ounces in the December quarter, seven percent up from the same three months a year earlier and eight percent higher than production in the September quarter. This contributed to full-year production of 356,943 ounces from Sukari, which beat 2012’s total by 36 percent. The company’s 2013 guidance for Sukari had been at 320,000 ounces.

Howard Craig was brought in from the oil and gas industry over three years ago: his mission to breathe new life into one of South Africa’s key businesses. Rand Refinery, since 1967 the sole producer of Krugerrands and gold bars destined for the bullion banks of the world along with gold bars, is the pipeline to the market for the greater part of Africa’s gold doré – the semi pure product from the mines.

Mutanda, with operations in Katanga, is seen as one of Glencore's key growth assets in Central Africa's copper belt and the cash purchase sees the mining and commodities trading major acquire the remaining 14.5 percent indirect equality in the copper and cobalt producer.  

If any proof were needed to support the belief that Africa has become one of the world’s epicentres for mining success over the last decade, one arguably needs to look no further than Randgold Resources. An Africa-focused gold mining and exploration company, it has been the architect behind a host of major discoveries to date in Mali, the Côte d’Ivoire, Senegal and the Democratic Republic of Congo (DRC).

In 2006 when he seriously started to sell his conviction that Greenland would be the next game-changer in the global supply chain for minerals, Rod McIllree found that the investment community in his native Australia shared neither his enthusiasm nor his outlook. In Australia not many people had heard of the Ilimaussaq Complex right at the southern tip of Greenland, which had been investigated by geologists from Greenland’s ‘mother country’ Denmark for decades and had been found to be rich in uranium.

While mining companies are no strangers to volatility, 2013 stands out as a year of particularly significant shifts. Slower demand out of China and ongoing economic weakness in other parts of the world pushed down commodity prices and threatened to tip certain commodities into over-supply. Despite this softness, both operational and capital costs continued to rise and governments in many jurisdictions continued to demand outsized contributions from the natural resources sector.

The report predicts that employment in the mining sector will rise by 7.4 percent over the next four years, with the oil and gas sector providing the largest number of new jobs. However, with this comes the need for new skills to be adopted amongst the workforce.

A family owned and run business, Industrias Correagua was founded almost 60 years ago by one Juan Amado. From its inception the main activities of the company included the fabrication of steel products such as roofing material, gas tanks, and speciality projects such as silos, large tanks, flagpoles and bridges, as well as construction. What has remained consistent over the last six decades is the company’s on-going desire to be innovative, utilise new technologies, and identify and harness the potential of new and emerging products.