Africa mining boom....
Africa's share of mine deals triples
February 9 2011 at 05:19pm
Africa's share of global mining deal flows tripled from 5% in 2009 to 15% in 2010, according to a report released on Wednesday by Ernst & Young.
The bulk of these deals was inbound and showed a significant growth in volume, signifying the increased interest of the rest of the world in Africa.
“In one major deal, Rio Tinto offered US$3.9 billion to buy Mozambican coal miner Riversdale, while Xstrata is paying US$513 million for Sphere Minerals, with the goal of gaining three iron ore projects in Mauritania,” said Adrian Macartney, mining sector leader for Africa at Ernst & Young.
“When one takes into account the increasing interest in Africa's mining sector from companies in China, India, Brazil and Russia, it is easy to see why the future looks rosy,” added Macartney.
When it was suggested a year ago that Africa's economic recovery was on track, many thought this premature. However, a quick look at current figures shows that there can be little doubt that the continent is definitely “open for business”.
In early January 2011, the International Monetary Fund (IMF) forecast that Africa would take seven of the top ten places over the next five years.
And with Africa once again presenting good value to investors, its mining economies are once more in the spotlight.
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