Africa focused mining companies are suffering under the weight of higher costs and lower productivity, with the value of some companies halving over the past year.
A Deloitte report has found publicly listed West Australian mining companies operating in Africa have been hit by a 44.5 per cent fall in their market value over the past 12 months, to $7.6 billion.
Gold explorers and producers were the worst off, with Perseus Mining and Resolute Mining having more than 50 per cent of their value wiped out over the year.
The Deloitte WA Index found supply issues were affecting production economics in African countries, with the industry facing rising costs and declining productivity as a result.
Deloitte's Australia-Africa Services Group Leader Jacques van Rhyn said cash-strapped junior and mid-tier producers and explorers were increasingly becoming takeover targets, as larger players looked for quality assets at bargain prices.
"The South African gold sector, as an example of what is currently occurring across Africa in general, is undergoing restructuring and consolidation," Mr van Rhyn said.
"With higher cost assets looking to being sold or closed, and low cost assets being acquired or developed, a shortage of management and technical capability creates an ideal dynamic for consolidation."
Between 2005 and 2012, South Africa's gold production fell 47 per cent, driven by maturing operations which are relying on deeper mines and marginal lower grade ore deposits amid lower gold prices.
Deloitte's Tim Richards said South African labour productivity had been steadily declining as annual wage inflation grows at 12 per cent amid hikes in electricity and transportation costs.
"Mining companies operating throughout Africa will need to focus on new technology and its potential role in unlocking deposits and improving productivity in order to remain competitive," Mr Richards said.
Only two WA listed companies with operations in Africa, Base Resources and Tiger Resources, experienced increases in market value in 2013.