Black Hawk Mining Bulletin Articles: Aus Mining Continues Growth

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BLACKHAWK MINES

• Black Hawk Mining Articles

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Black Hawk Mining Bulletin Articles Aus Mining
Continues Growth

• A recent survey conducted in Australia shows that
  although their mining sector is enjoying a boom,
  services sector is in an opposite condition. Most
  of the contraction was caused by a decline in new
  orders among the various players in the services
  sector while sales and prices also fell.
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• Just 2 out of 9 sub-sectors (namely, personal and
  recreational services and finance and insurance)
  included in the survey has grown during the
  month. The increased activity in the mining
  sector is not positively affecting the remaining
  sectors of the local market.

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The chief executive of the Australian Industry
Group (AI Group) said that the contraction in the
services industry just shows how narrow is its
base of development in the broad
market.   Several stability in financial states
abroad in a period of few months will be
favorable for allowing consumer and business
confidence to improve, resulting in a gradual
increase in spending.   More than half of the
worlds mining acquisitions in 2011 has involved
projects located in US, Australia and Canada.
Other buyers include China, India, Russia and
Brazil, all of which increased their acquisitions
by 42 since 2006.  
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In terms of gold, the average deal is valued at
USD 41 million where a premium is almost 50.
Propelling the lucrative market is Australia with
15, United States with 14 and Canada with
49.   Considering the bigger picture of the
industry, PwC seems to be expecting that this
year will see record MA valuations and volumes
in the mining sector worldwide.   According to
the company, sovereign wealth funds tend to have
more advantage in winning transactions because of
their low cost of capital.   PwC is assuming that
non-miners like sovereign wealth funds, large
pension funds and private equity might reassess
their approach to the industry and begin to
participate more in MA.