Mining, Minerals, Metals: Introduction
In highwall mining, the coal seam is penetrated by a continuous miner propelled by a hydraulic machine.
Companies in this segment remove soil and rock overlying the mineral deposit through shafts or tunnels.
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
- Efficient operations since most products are commodities sold based on price
- Volume of operations
- Strategic acquisitions at bargain prices
From the Blog
Mongolia is in the midst of a debt crisis, and this week it was announced that the troubled country would receive a $5.5 billion international bailout. The loan will be financed by a collection of entities, including the Asian Development Bank, the World Bank, Japan, South Korea, and China. Mongolia’s struggles are recent, but came swiftly. After growing an incredible 17% in 2011, the country quickly fell into cash problems. China’s economic slowdown was a major factor in the economy’s collapse, along with falling commodity prices, a backbone of the Mongolian economy.
In efforts to dominating the global mining industry, Canada has made tremendous attempts to promote mining overseas. With increased international mining initiatives, many Canadian corporations have been fueling their resources to expand globally. According to the Huffington Post, “Ontario-based Carube Copper said it acquired ‘over 500 square kilometers of the most prospective ground in Jamaica based on historic showings.’”
- Hoovers (Date Accessed: 6/1/2017)