The Charles Russell Speechlys Energy & Natural Resources update
With the conclusion of the recent Mining Indaba and PDAC mining conferences, I hope that those who attended again found the conferences valuable. The mood at the Indaba conference in Cape Town overall appeared positive despite the prevailing market weakness in the mining sector. Feedback from PDAC was more mixed, largely due to the preponderance of micro-caps chasing the ever elusive investor cash, which depressed the mood in Toronto.
One theme which came out of the Indaba conference was the growing interest being shown by Middle Eastern investors in African resources opportunities. As well as developing their own mining industry, as part of a general desire to diversify away from oil and gas, we are seeing Gulf States in particular establishing sovereign funds to invest in opportunities in emerging markets.
This new source of investment for natural resources companies will be welcome at a time when the markets are proving very tough for fundraisings. However, sovereign funds may prove much more demanding and proactive than the typical institutional investor and companies need to be prepared for this. In this edition, we have taken on this Middle East flavour and have an article about mining in Saudi Arabia and Oman, which arguably have the most developed mining sectors in the GCC.
We also have an article about grievance mechanisms for major contracts in the resources sector, plus our regular update on Employee benefits.