Market developments are defining the dynamics of growth for mining companies in what may be the 'post boom' era. The prolonged period of strong demand and very high commodities prices has ended – against this backdrop growth continues to be a function of outbound expansion and inbound investment.
Minerals share a significant portion of PNG’s economy and has long been a pillar of the country’s economic growth. Since 1970, the mining industry has dominated PNG’s economy. Mineral exports are gold, copper, silver, nickel and cobalt. The mining sector is facing a range of competing trends and a rapidly changing global business environment.
This is resulting in a range of challenges for the mining industry:
- Improving productivity to increase volumes and reduce costs for mining companies already in operation.
- Developing and implementing strategies for growth, mergers and acquisitions, innovation, and operating models to drive value.
- Understanding complex regulatory and policy changes (e.g. tax reforms, carbon pricing)
- Expanding into Asia and Pacific regions which will require real expertise, insight and understanding of these regions, and their economic, business and regulatory landscapes to fully realise their growth ambitions, while managing sovereign risk issues.
- Understanding how to react to the changing price of commodities through a greater understanding of the underlying cost drivers
- Managing regulatory approvals and permits to develop, especially for companies with new project to fund and develop.
- Preparing and planning for operations – to ensure a smooth transition from design and construction.
- Finding risk capital to invest into a high cost environment for new projects, particularly as the exchange rate starts to move around
How we can help
KPMG helps organisations and people to discover new ideas to grow and manage risk, and to deliver fundamentally better results through different ways of operating.
We offer global connectivity and work to deliver commercially astute solutions across all aspects of a mining business’s strategy – growth, performance, assurance, sustainability and integrated tax.
KPMG professionals understand current issues, provide attention to technical detail and are relentlessly driven to innovate. Today’s mining challenges tend to be unusually difficult and most often call for financial methodologies. Surround yourself with inspired KPMG mining professionals who can help you raise your game
As a recognized market leader, we are proactively anticipating the impacts of disruption and investing in our tools and assets to deliver value to our clients,