The Power of the Scan — From Soccer Fields to Mining Fields: Arbitrage Part 4 of 4

Essential Scanning Tools for Mining Arbitrage in Africa

In soccer, some of the greatest midfielders of all time — players like Xavi and Iniesta — are renowned for their exceptional situational awareness. Their secret? The scan. These players constantly turn their heads, taking quick snapshots of the entire field up to 8 times in the 10 seconds before receiving the ball. This habit allows them to build a mental map of player positions, spot emerging opportunities, and make split-second decisions that can change the course of a game.

Just as Xavi and Iniesta’s scans give them a competitive edge on the soccer field, arbitrage thinking provides a similar advantage in the world of business and mining. It’s about constantly surveying the landscape, identifying patterns, and spotting opportunities that others might miss.

Photo by Seth Doyle on Unsplash

Quick recap:

In Part 1 and Part 2 of our series on arbitrage in African mining, we explored four types of arbitrage:

1. Geopolitical arbitrage (act when things are changing politically
2. Technology arbitrage (access previously uneconomical deposits)
3. Market timing (leverage the resource price fluctuations and cycles)
4. Funding arbitrage (use innovative or alternative sources of capital)

Each of these represents a different ‘scan’ of the mining landscape, looking for inefficiencies and opportunities to create value.

Part 3 was a continuation of our ‘scan’, exploring six more types of arbitrage:

5. Information arbitrage (superior data analysis or proprietary data)

6. Regulatory arbitrage (find favorable jurisdictions or influence change)

7. Supply chain arbitrage (vertical integration)

8. Talent arbitrage (access superior human capital)

9. Small-scale arbitrage (focus on smaller deposits that are uneconomical for others)

10. Reclamation arbitrage (find value in reclaiming old sites)

Each of these represents a different angle from which to view the mining industry, much like a midfielder scanning different areas of the soccer field.

By developing this ‘360-degree vision’ of the sector, investors and operators can position themselves to spot and capitalize on opportunities that others might overlook.

Just as Xavi and Iniesta’s scans allowed them to orchestrate plays that seemed to materialize out of thin air, mastering these various forms of arbitrage can enable mining companies to create value in unexpected ways.

Arbitrage Scanning Toolkit

In this final part of the series, I share some useful tools to help you with scanning the opportunity landscape. Successful mining arbitrageurs develop a habit of continuously surveying their environment across multiple dimensions.

By systematically using these tools, mining arbitrageurs can develop a comprehensive view of the African mining landscape, identifying inefficiencies and opportunities across various dimensions. Remember, the key to effective scanning is not just having access to these tools, but developing the ability to synthesize information from multiple sources, spot patterns, and act on insights faster than competitors

Disclaimer: Please note that the availability or exact URLs of these resources may change over time, and some require subscriptions or professional access. Remember to verify the credibility and update the location of these sources, especially for free resources. Some of the most valuable insights often come from combining information from multiple sources and applying critical analysis.

1. Geopolitical and Regulatory Scanners:

• Africa Intelligence: https://www.africaintelligence.com/ (Subscription required) Provides in-depth political and economic intelligence on African countries, crucial for understanding geopolitical risks and opportunities.
• Africa Mining Intelligence: https://www.africaintelligence.com/AMA/ (Part of Africa Intelligence, subscription required) Offers insights on mining policies and projects across Africa, helping to identify regulatory arbitrage opportunities.
• EITI (Extractive Industries Transparency Initiative) Reports: https://eiti.org/countries Valuable for assessing transparency in resource governance, which can indicate political and operational risks.

2. Geological and Exploration Data:

• African Mineral Geoscience Initiative (AMGI): https://www.african-minerals.org/ Provides geological data for various African countries, useful for identifying unexplored or underexplored mineral deposits.
• USGS Mineral Resources Data System: https://mrdata.usgs.gov/ Offers global mineral resource information, helping to compare African deposits with global benchmarks.
• National geological surveys: For example Geological Survey of South Africa: http://www.geoscience.org.za/ National surveys provide detailed, country-specific geological data, crucial for targeted exploration.

3. Market and Commodity Trackers:

• Bloomberg Terminal: https://www.bloomberg.com/professional/solution/bloomberg-terminal/ (Subscription required) Provides real-time commodity prices and market analysis, essential for market timing arbitrage.
• S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence/ (Subscription required) Offers comprehensive data on the mining sector, useful for competitive analysis and market trends.
• African Development Bank’s Commodity Markets Overview: https://www.afdb.org/en/knowledge/publications/commodity-market-review Provides Africa-specific commodity market insights, helping to identify regional trends and opportunities.

4. Technology and Innovation Monitors:

• Mining Technology News: https://www.mining-technology.com/ Covers technological advancements in the mining sector, crucial for identifying technological arbitrage opportunities.
• StartUs Insights: https://www.startus-insights.com/innovators-guide/mining-trends-innovation/ Tracks mining startups and innovations, helping to spot emerging technologies that could disrupt the industry.
• African Mining Indaba’s Innovation and Research Showcase: https://miningindaba.com/ Highlights innovative solutions specific to African mining, useful for identifying region-specific technological opportunities.

5. Environmental and Social Governance (ESG) Trackers:

• MSCI ESG Ratings: https://www.msci.com/our-solutions/esg-investing/esg-ratings (Subscription required) Provides ESG ratings for mining companies, crucial for identifying sustainability-related risks and opportunities.
• Sustainalytics: https://www.sustainalytics.com/ (Subscription required) Offers ESG risk ratings and research, helping to assess the sustainability performance of mining operations.
• Global Reporting Initiative (GRI) database: https://database.globalreporting.org/ For sustainability reporting, useful for benchmarking ESG practices in the mining sector.

6. Financial and Investment Tools:

• PwC’s Mine Report: https://www.pwc.com/gx/en/industries/energy-utilities-resources/publications/mine.html Annual review of global mining trends, providing insights into industry financial performance and outlook.
• Junior Mining Network: https://www.juniorminingnetwork.com/ Focused on junior mining companies, useful for identifying emerging players and projects in Africa.
• TSX Venture Exchange: https://www.tsx.com/listings/listing-with-us/sector-and-product-profiles/mining Many African-focused mining companies are listed here, providing access to financial data and corporate information.

7. Supply Chain and Logistics Monitors:

• African Development Bank’s Africa Infrastructure Development Index: https://infrastructureafrica.opendataforafrica.org/ Helps assess infrastructure quality across African countries, crucial for supply chain arbitrage.
• Logistics Performance Index (LPI) by the World Bank: https://lpi.worldbank.org/ Useful for identifying countries with efficient logistics, important for supply chain optimization.
• African Continental Free Trade Area (AfCFTA) updates: https://au.int/en/cfta Provides information on trade agreements that could impact mineral supply chains across Africa.

8. Talent and Skills Databases:

• African Mining Network: https://www.africanminingnetwork.com/ Professional network for the African mining industry, useful for talent arbitrage and networking.
• LinkedIn Talent Insights: https://business.linkedin.com/talent-solutions/talent-insights (Subscription required) For tracking mining talent trends and identifying skill gaps or opportunities.

9. Competitive Intelligence Tools:

• Crunchbase: https://www.crunchbase.com/ (Subscription required for full access) Useful for tracking startups and investments in the mining sector, helping to identify emerging competitors or acquisition targets.
• MergentOnline: https://www.mergentonline.com/ (Subscription required) Provides comprehensive company data, useful for detailed competitor analysis.

10. Local Community and Social Impact Trackers:

• Natural Resource Governance Institute’s Resource Governance Index: https://resourcegovernanceindex.org/ Helps assess the quality of resource governance in different countries, crucial for understanding operational risks and opportunities.
• World Bank’s Mining Investment and Governance Review: https://www.worldbank.org/en/programs/mingov Provides insights into the mining investment climate and governance issues in African countries.

11. Artificial Intelligence and Big Data Tools:

• IBM Watson Studio: https://www.ibm.com/watson Useful for natural language processing of mining reports and unstructured data analysis.
• Google Earth Engine: https://earthengine.google.com/ Powerful for satellite imagery analysis, helping to identify potential mining sites or monitor existing ones.
• Palantir: https://www.palantir.com/ (Enterprise solution, contact required) Useful for complex data integration and analysis, helping to identify patterns and opportunities across multiple data sources.
• Spacy https://spacy.io/ or OpenAI’s GPT Models https://platform.openai.com/: Analyze news sources, and social media to identify emerging trends and other factors that might create arbitrage opportunities.

12. Networking and Conference Platforms:

• Investing in African Mining Indaba: https://miningindaba.com/ Annual conference for mining professionals, excellent for networking and gaining insights into African mining trends.
• Africa Down Under Conference: https://www.africadownunderconference.com/ Focuses on Australian mining activity in Africa, useful for understanding international involvement in African mining.
• PDAC International Convention: https://www.pdac.ca/convention Global mining industry event with African representation, providing a broad perspective on the global mining landscape.
• The Capital and Culture Conference: https://www.capitalandculture.com Connects the flow of capital to key African sectors, including mining, through the lens of cultural intelligence.

Ethical Arbitrage: A Critical Consideration

While arbitrage in African mining offers significant opportunities for value creation, it must be pursued with a strong ethical framework. Ethical arbitrage respects local communities, prioritizes environmental stewardship, ensures transparency, and promotes fair labor practices. It contributes to sustainable development, avoids fueling conflicts, and respects cultural heritage. The goal is to create win-win situations that benefit all stakeholders, including local governments and communities.

By focusing on long-term, sustainable value rather than short-term gains, ethical arbitrageurs can drive innovation and growth in Africa’s mining sector while mitigating risks and building positive reputations in an increasingly ESG-conscious global market.

Remember, the most valuable arbitrage opportunities are those that align business success with positive social and environmental impacts.

That’s a wrap, folks!

I hope you’ve enjoyed this series on arbitrage opportunities in African mining. If you know of any other useful scanning tools, or resources to help other African mining arbitrageurs, please feel free to share them in the comments.