March 28, 2024

Canada tops ranking in global mining sector

VANCOUVER – The Canadian mining and metals sector ranks No. 1 in an international list of corporate deal-making so far this year.

Canadian mining companies had 196 acquisition deals during the first half of 2011 and were targets for acquision in 129 deals, according to the Ernst & Young report.

Australia came in second in both categories, making acquisitions in 83 deals and becoming acquisition targets in 72 deals between January and June.

The report says mining company debt is at an all-time low while profitability is at near-record levels, which is translating into bigger transactions.

Those factors, coupled with increased demand for natural resources in emerging markets, are contributing to an uptick in domestic activity.

The report found that 511 mining and metals deals were made in the first half of this year, a decline from 573 deals in the same period of last year.

“So far, 2011 has brought fewer but larger deals to the global mining sector,” says Tom Whelan, head of Ernst & Young’s national mining and metals practice.

“The total deal value of mining transactions from January to June more than doubled to US$ 96.3 billion from $ 47.9 billion.”

Whelan said initial public offerings in the mining and metals sector rose 30 per cent to 73 in the first half of the year.

“We expect to see a significant number of mining and metals IPOs during the second half of 2011 and beyond,” he added.

Local news from metronews.ca/vancouver

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