Chart: Which countries are falling behind in gold mine production
India tops the global ranking with demand nearly 50 times that of its mined supply.
A recent survey of over 100 African mining companies conducted by business consultancy Timetric, shows that most of the firms operating in the continent (65%) plans to spend more this year, particularly in heavy equipment.
The respondents also declared they aimed to increase investments in the other three categories mentioned in the study: “equipment parts and components”, “explosives, blasting materials and chemicals,” and “maintenance services.”
“The results are encouraging for any current or prospective supplier to the African mining industry,” says Cliff Smee, lead analyst at Timetric. “In particular, the high expected increase in plant and heavy equipment spending is indicative of an expansion in production capabilities.”
Increase vs decrease in expenditure by category (%), 2014. Source: Timetric Mining Equipment, technology and services survey, H2 2014.
The study, conducted between July and September 2014, notes that the most common buying method for mining equipment, used by 66% of respondents, is outright purchase. It also shows that African miners are increasingly centralizing procurement, with 49% of respondents expecting greater centralism over the next two years.
The report, based on responses from 108 buyers and decision-makers across 100 mines in 16 African countries, including South Africa, Botswana, Democratic Republic of Congo, Ghana, Mali, Mozambique, Namibia, Nigeria, Tanzania Zambia and Zimbabwe, concludes the local industry has began an expansion phase.
