An industry report released today shows that 2012 saw the lowest number of deals in the mining sector since 2008, and recorded the first annual drop in funds raised since the financial crisis.
Funds raised by mining and metals companies fell by 25% year-on-year (y-o-y), according to a note released by consultants Ernst & Young. The landscape does not look to immediately improve, the note said.
“The capital strike by many mining and metals companies in the face of rising costs and softer prices in 2012 will continue until commodity prices recover sufficiently to encourage new investment,” Ernst & Young’s global mining & metals transactions leader,...