In a recent survey of over 100 African miners, most are optimistic about future expenditure. On the whole, the majority of respondents expect expenditure to increase across the four categories investigated: ‘plant and heavy equipment’; ‘equipment parts and components’; ‘explosives, blasting materials and chemicals’ and ‘maintenance services’.
Some 65% of respondents expect to increase spending on ‘plant and heavy equipment’ over the next 12 months, and while ‘explosives, blasting materials and chemicals’ have the lowest share expecting an increase, this proportion is still 55%.
The results are encouraging for any current or prospective supplier to the African mining industry. In particular, the high expected increase in plant and heavy equipment spending is indicative of an expansion in production capabilities.
Cliff Smee, Lead Analyst at Timetric, said: “This trend of greater spending on plant and heavy equipment and lower spending on explosives is consistent with an expanding mining industry. Mines are spending more on heavy equipment in order to increase production, with heavy machinery purchases preceding increased spend on consumables. Therefore, the results for this section of the survey suggest that the respondents view the African mining industry is in an expansion phase.”
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/mining/08012015/african-miners-set-to-increase-spending-1729/