Modern Mining February 2023

initiatives to ensure that mining operations are compliant with international standards. Finally, initiatives should be set up to ensure that mining companies are held accountable for their actions and that the proceeds of mining are used to benefit local communities. 5. Low Levels of Technology African mining companies frequently lack access to latest technologies, which can lead to inefficient and unsafe operations. One way to address this issue is to provide African mining companies with more access to technology transfer. This could be achieved through international partnerships and collaborations with advanced mining coun tries, such as Australia, Canada, and the United States. These partnerships should focus on sharing best practices and training in the use of safe and efficient mining technologies, such as automation and data analytics. International organisations, such as the United Nations, could help facilitate the transfer of technology and resources to African mining companies, while African governments could provide incentives for international companies to invest in technology transfer programs in African countries. Overview of M&A - Mine Investment Activities in 2022 for Africa In 2022, there were several mining investments into Africa. What was clearly noticeable was the high transaction types as M&A – Acquisition of Whole Company was dominant with Majority Stake acquisitions following closely. This trend can be attributed to the continued growth of the African economy, as well as the increasing demand for natural resources. The continent is home to numerous multinational companies that are looking to capitalise on the continent’s rich mineral resources. This has led to increased competition, as well as increased investment into the continent’s mining sector. In addition, the African Union has been pushing for increased regional integration and foreign direct investment, which has seen a significant increase in the number of companies setting up operations on the con tinent. As a result, more and more companies are looking for ways to acquire or obtain majority stake in African mines. This has led to a sharp rise in the number of mergers and acquisitions taking place in recent years. Majority stake acquisitions have been particu larly popular amongst foreign companies, as these acquisitions allow them to gain a foothold in the African mining industry without having to buy an entire mine or invest in a new project. The results of the breakdown of commodities that were attractive in 2022 can be seen in terms of the following categories: Precious Metals and Minerals: Investors saw opportunities in investing in gold, silver and other precious metals and minerals because of their potential for higher returns and price appreciation as well as hedging against inflation. Diversified Metals and Mining: Investors saw potential in investing in diversified metals and mining companies because of their exposure to multiple metals and minerals and their large-scale operations, which can help to mitigate risk. Gold: Gold was an attractive investment in 2022 due to its long history of being a store of value and hedge against inflation. Copper: Copper saw investment due to increased demand from industrial and manufacturing uses, as well as its potential for price appreciation. Silver: Silver saw investment in 2022 because of its use as an industrial metal as well as its potential for price appreciation. Steel: Steel saw investment in 2022 due to its use in infrastructure and construction projects, as well as its potential for price appreciation. 

February 2023  MODERN MINING  35

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