/ 28 August 2015

Africa needs mining

Africa Needs Mining

Africa is one of the fastest growing economies in the world and her growth rate is among the highest globally. Over the years, a steady average demand for minerals such as gold, platinum, iron ore and coal has provided a business case for new and existing operations.

With increasing demand for minerals such as copper, aluminium, nickel and titanium, in addition to the continent’s untapped oil reserves, gas reserves and other mineral resources, Africa has the potential to become a magnet for investors. 

The continent’s current commitment to fiscal stability and the resultant predictability, combined with the growing workforce and consumer market, will further create a favourable environment for foreign investment.

In addition, several infrastructure undertakings that have been announced in the recent past should unlock the economic activity in many of the resource-endowed countries.

The mining sector will continue to provide a critical mass for the development of both downstream and upstream industries.  Industries such as energy, financial services, water services, engineering services, and specialist seismic, geological as well as metallurgical services will continue to benefit from the mining activity in the region.

With the mining sector facing serious economic head winds, a change in the approach to investment decision making has been evident, resulting in stringent project selection criteria and shelving of marginal projects. Key stakeholders like communities, have also been demanding to be more involved in mining activities in areas ranging from employment and supplier development, to ownership.

From the mining sector’s service provider’s point of view, initiatives to support the sector in achieving its multifaceted objectives are a must. Fluor, as an engineering and construction company, has reacted to these developing requirements by adding innovative solutions to our offering, examples of which include 3rd Gen Modularisation (third generation modularisation, an execution model that splits the project into process blocks and moves into designing modules that then drives the plot plan), Engineering, Procurement, Fabrication and Construction (EPFC) solutions and additionally, continued operation of our own multi-accredited training facilities.

To seize the opportunity for Africa’s current and future generations, investment in natural, economic and human capital will be key factors to recovery and growth. Fluor is confident that the African continent will rise to the occasion and with offices in Johannesburg, Botswana and Mozambique, we can support our clients in the region with integrated project solutions.