Global mining companies look for Qatari fund
December 26, 2013 - 12:10:42 pm
DOHA: Global mining companies which are projected to face challenging market conditions in 2014, are looking for GCC Sovereign Wealth Fund, including from Qatar.
Deolitte, leading consulting and financial advisory firm that tracked top mining trends for 2014, said the Middle East is a significant source of potential wealth for the mining companies.
“Although these investors have not yet committed, funding from countries like Qatar, Abu Dhabi and Saudi Arabia may not be far off,” Deloitte’s “Tracking the Trends 2014” report released yesterday said.
Traditionally, China dominates this market. Now other countries are also entering the game. Indian investment houses are buying Australian coal to secure assets and supply for both electricity and steel.
Both Japanese and Korean investors are becoming more active in the sector.
While major companies tap the bond markets with a range of high-yield and hybrid issues, others are seeking different sources of funding through royalty and streaming arrangements, off-take deals, joint ventures and equipment financing.
“While mining companies cannot change global economic trends, they can change the way they operate. Rather than waiting out the market swing, companies should take this opportunity to evolve their business by adopting the processes, technologies, and mindsets necessary to strengthen their long-term operations.”, said Kenneth McKellar, energy and resources leader at Deloitte Middle East.
Now in its sixth year of publication, Tracking the Trends examines the top ten issues affecting mining companies around the world.
The report highlights key industry indicators and provides a range of solutions companies can adopt to manage the impacts of shifting industry dynamics.