《Market Analysis》
  • Coal Industry leading the charge in 2017, Mining Acquisition transactions Increase by 10% to USD 96.8 Billion
    2018-01-11 00:00:25

Author:Century Mining Database

The total amount of M & A activity in mining industry for 2017 was US$96.8 Billion, it is a 10% year on year increase as compared with 2016. But it's still far behind the bullish years of the past where annual M & A activity value in the mining industry had reached between $150 to $200 Billion.
According to the data released by Thompson Reuters for 2017, over US$92 Billion was involved in coal, iron ore mining and steel transactions.  Reasons being despite the global push for more environmentally green industries, most investors are still faithful to the older steady yet profit reliable industries.
According to Reuters, despite the risks associated with pollutions, analysts still looks positively on coal transactions.  Analyst Nik Stanojevic from Brewin Dolphin has expressed, emerging markets such as China and India will continue to rely on coal for years to come.
Ironically, the transactions in environmentally friendly metal industries supporting the manufacturing of battery powered energies has slowed down in their progress.  According the analysts, most mining companies are reluctant to invest heavily after just recovering from the debt crisis suffered by the industry in 2012.
Mr. Paul Gait, an analyst from Bernstein has stated : We hope this industry has learned a lessons on vigilance; it is not a wise decision to invest in lithium projects currently, because the price of lithium is dropping, and market hasn't hit bottom yet.