Segments

Highwall Mining

In highwall mining, the coal seam is penetrated by a continuous miner propelled by a hydraulic machine.

Surface Mining

Companies in this segment remove soil and rock overlying the mineral deposit through shafts or tunnels.

Underground Mining

The segment includes companies that dig tunnels or shafts into the earth in order to reach buried ore deposits, such as coal and other hard rocks.

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

  • Coal: Generators of electricity
  • Metal ore: Industrial production
  • Nonmetallic mineral: Construction spending and agricultural spending on fertilizers

Profitability Drivers

  • Efficient operations since most products are commodities sold based on price
  • Volume of operations
  • Strategic acquisitions at bargain prices

From the Blog Blog RSS

The price of copper recently rose over $9000 per metric ton for the first time since 2011, and other commodities like oil, corn, and other metals like iron ore and nickel are seeing an increase in values as the economy shows potential signs of growth.  On top of the hope for economic growth, the possibility of rising inflation and a new focus on expanding the infrastructure of the renewable energy and electric vehicle markets has sent the price upward.

Global mining companies have taken a beating in the past decade in one of the industry’s longest bear markets. The MSCI World Metals and Mining Index tracks the stock performance of 39 metals and mining companies across 23 developed nations and serves as a proxy for the overall global metals and mining industry. This index fell 18% in 2018 closing the year out 55 percentage points lower than its 2008 peak.

Sources

  1. Hoovers (Date Accessed: 6/1/2017)