Over the next two decades Australia’s mining industry will attract over 18 times the investment planned for South Africa, a study has shown.
In Deloitte’s Tracking the Trends 2013 report, analysts said the projected investment for Australia from 2012 to 2031 was $55 billion, compared with $3 billion for South Africa.
The Dominican Republic and Argentina, two other mining centres, will also attract $4 billion and $9 billion respectively, according to the study.
Brazil, home to Australia’s biggest iron ore competitor Vale as well as a host of other large projects, is expected to attract $30 billion over the period.
While costs remain a problem for Australia, Deloitte said miners in South America and North America were expected to to post more overruns on their projects.
After surveying a network of mining professionals from around the globe, Deloitte said managing uncertainty and pulling back from boom-time expansions would be two of the biggest challenges for the industry.
A rising “mergers and acquisition storm” and “greedier” governments were also marked as big problems for the industry.
Finally corruption, skills shortages, safety, technology, and corporate responsibility were highlighted as key issues.