Modern Mining May 2025

The Russia-Ukraine war is still playing out, China is under pressure from the US, and with Trump back in the White House, a shift in US trade and foreign policy will have global ramifications.

laws and regulations, and making investments that go bey

the White House, a shift in US trade and foreign policy will have global ramifications. These factors affect commodity demand, trade flows, and where capital is deployed. Regionally, miners operating in Africa need to ask hard questions about their position. Are they in a jurisdiction with a stable government? Do they have access to ports, or are they landlocked and dealing with logistical bottlenecks? Can they negotiate a mine development agreement that gives them long term security in that market? Understanding these risks upfront is essential to making informed investment decisions. 2. The second theme is the importance of securing a social licence to operate. This is not just about meeting regulatory requirements; it’s about earning the trust of local communities and governments. A mining company that is not seen as a partner in local economic and social development will struggle to operate, even if it holds all the necessary permits. It’s about demonstrating real value to the communities surrounding a project, ensuring compliance with

Sustainable resource management is key to mining’s future.

3. Heightened M&A activity is another defining trend. High commodity prices have left producers sitting on excess cash, and the need to put that money to work. First, they will pay down debt and then declare dividends. After that, share buybacks become an option. But eventually, once those steps have been taken, the logical move is acquisitions. Larger miners are actively looking at acquiring junior exploration companies that have completed feasibility studies but have not raised the capital to develop their projects. Right now, there’s a lot of M&A activity on the continent as bigger players look to take advantage of high commodity prices and expand their resource base. 4. Accessing commercial bank debt remains an area that many junior miners are hesitant about. The perception is that banks are too slow, too bureaucratic, and impose too many conditions on financing. But the reality is that commercial

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