Private Equity Invests in Mining Boom

The mining sector will see large investment by global companies in coming years, according to a report by Ernst & Young's Global Mining and Metals Centre.

Analysts at the organisation recently told The Australian newspaper that:

"Mining is now in a new super cycle that is generating higher and more predictable cash flows".

Private equity investors are becoming increasingly attracted to the large amount of short-term cash being generated by mining companies.

Last year analysts said the value of Australia's minerals and energy exports were expected to grow by 20% taking it to about A$111 billion by the end of 2007.

Earlier this week BHP Billiton was set to team up with the Blackstone Group or other private equity firms to bid for U.S. aluminium maker Alcoa.