China's recent economic activity has set the entire world on edge. In 2015, the country reported a growth rate of 6.9%, its lowest in a quarter century. This has been reflected in the state of the country's major industries, especially in automotives and mining. China is still one of the world's superior mining nations, but several problems have erupted as growth continues to slip. Natural resources are depleting, top minerals and metals are experiencing production decline, and international projects are being abandoned. This has affected the industry on an global scale, considering many countries trading in metals are largely dependent on China. The country appears to hold on to its number one spot with further projects and investments, perhaps in the hopes the industry will give it a much-needed boost.
globalEDGE Blog - By Tag: global-mining-industry-series
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“We are the basket which holds all the proverbial eggs.” This quote by the Zambian Chamber of Mines President about their national mining industry can be extrapolated to more widely represent the economy of Africa. Many African nations are heavily reliant, if not entirely dependent, on the mining industry to drive economic growth. However, due to a multitude of causes, the once booming mining industry that once drove national annual growth rates into double digits is now faltering and bringing the rest of the economy down with it.
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It is no secret that the mining and metals industry is mired in a multi-year slump. Unfortunately, it looks as if this trend will continue into the foreseeable future. One major reason for this negative outlook is slowing economic growth in emerging markets, particularly in China. This issue has proven problematic for the industry, as it has caused investors and lenders to flee the sector, which has in turn created a shortage of financing. However, there is cause for optimism, as most industry experts ensure that the painful cycle will eventually come to an end.