Mining, Minerals, Metals: Introduction
Though it may seem like an outdated industry, the mining, metals, and minerals industry forms the foundation of modern society. Mining consists of locating, excavating, and processing geological materials such as metals, minerals, or precious stones. Energy-related materials, as well as cultivable resources are excluded from this category. This industry is typically dominated by large, multinational firms.
The Mining, Minerals, Metals industry is Highly Concentrated. The production in this industry is dominated by a small amount of large firms that are able to shape the industry’s direction and price levels.
Primary Demand Drivers
- Manufactures of durable goods such as motor vehicles, machinery, constuction steel
- Economic growth
- Efficient operations since most products are commodities sold based on price
- Volume of operations
- Strategic acquisitions at bargain prices