Merger and acquisition activity in the global mining and metals sector picked up notably in the second quarter from the previous quarter partly due to medium-sized and large companies disposing of assets to streamline their operations and strengthen balance sheets, according to a report from consultancy and accountancy firm Ernst & Young (EY).
The value of global mining and metals deals rose 93 per cent to USD $7.8 billion in the three months ended June 30, 2016, from USD $4.1 billion the previous quarter, according to the latest data analysed by EY.
North America accounted for the greatest volume of deals out of any region at 56 representing 54 per cent of the global deal volume due to mid-market consolidation in the gold sector there.
Asia-Pacific accounted for the highest deal value in the second quarter at USD $3.6 billion. This includes Sumitomo Metal Minings USD $1 billion acquisition of a 13 percent stake in the Morenci copper mine in Arizona, US, but excludes the major acquisitions by China Molybdenum of Freeport-McMoRans stake in the Tenke Fungurume operations in the Congo, and Anglo Americans niobium and phosphate operations in Brazil, which is due to close in the second half of this year.