Canada's mining sector is going through dramatic change, but the industry remains bullish on growth, KPMG International's latest Global Mining Risk Report finds.
While recent merger and acquisition transactions have raised concerns about the future of Canada's mining sector, domestic firms remain optimistic about growth opportunities. Canadian stock exchanges are the global leader in mining financings, and Canada continues to be a global hub for mining finance, KPMG reports.
Heather Cheeseman, partner, energy and natural resources, KPMG Canada, believes the industry is at a “crossroads” in Canada.
"Innovation and new technologies are rapidly reshaping the sector, while environmental and social expectations continue to grow. At the same time, we are seeing consolidation in the industry as companies look to find synergies and drive down costs,” Cheeseman said in a statement.
From KPMG International's Global Mining Risk Report.
Cheeseman added that despite many factors disrupting the industry, miners remain confident that they will be able to continue to grow their companies.
"While organic growth will always be the main driver, Canadian executives are increasingly seeing mergers and acquisitions and technology as the keys to expansions," she said.
Miners Confident in Growth
The report finds that mining executives increasingly believe innovation and advances in technology will reshape the industry, with 73% seeing this as more of an opportunity to their companies than a threat.
Of the surveyed, 66% are confident or very confident in their ability to grow in 2019, 73% expect to grow organically, 40% plan to grow via mergers and acquisitions and 29% plan to use innovation and technological transformation to grow.
"There has been some concern about the future of the sector in Canada given recent deals that could shift control out of the country," Cheeseman...