Mining in Africa and beyond

Mining in Africa and beyond

The outlook for jobs in mining for 2011 and beyond is positive. Reports in the press recently support the industry view that global spending on mining will even surpass the levels that were enjoyed during the years before the financial crisis.  The consensus is that the economic recovery will be led by China and other fast growing emerging markets with mineral resources.

 “The boom in capital expenditures, which extends to the oil, natural gas and agribusinesses, comes amid sharply rising prices for commodities such as copper, iron ore, crude oil, sugar and wheat” reports Javier Blas in the Financial Times of December 14th 2010.   

He continues “Global mining expenditure is set to hit a record $115bn-$120bn next year, above the peak of $110bn set in 2008, according to a survey of senior industry executives and consultants.”  All this bodes well for the job market. In Australia, the hottest mining region, the government’s resources forecasting agency predicts expenditure to jump by 58 per cent year-on-year.

The growth opportunities will be visible where some of the leaders in global mining are active. Vale, Rio Tinto and Xstrata are expected to take advantage of the rise in demand and price of raw materials. This means new capital investments and staffing requirements. 

Tom Albanese, chief executive of Rio Tinto says, “There is a greater sense of optimism in the sector”. Companies that support the mining sector such as Joy Global, specialists in mining excavators, supports this view and Mike Sutherlin, chief executive adds that ““We are entering the earlier stages of another multiyear expansion of the industry”.

Morgan Stanley’s outlook for commodities in 2011 is also very positive.  They predict that most commodities should move higher and that more than 70% of the economic growth is expected to come from commodity-intensive emerging-market economies, including China, India and Latin America.  Morgan Stanley also says that gold and copper are among the commodities for which it is “most constructive” in 2011. Their view on the copper price is an average of US$7,900 a metric ton in 2011, compared to US$7,300 for 2010. This could be a boost for job opportunities in Africa.