Mining industry analysis

The low copper price environment will pose further challenges, while powershortages remain a significant risk.

Metals and mining

Primarily used in power grid construction, the outlook for this sector remains strong. Reducing carbon footprint will receive special attention. While fossil fuels have helped to improve living standards around the world since the 18th century, their associated greenhouse gas emissions have led to global warming. As an example, iron ore demand will be impacted by the growing use of electric arc furnaces which require less iron ore than traditional blast furnaces. Access to resources Companies will need to venture into frontier mining areas. Automation includes process and software automation as well as applying robotic technology to vehicles and equipment. Metals consumption growth to slow Although consumption of key metals including iron ore steel and base metals will grow over the next few decades, the rampant growth witnessed during the decade prior to is unlikely to return. Automation and digitalization will result in more targeted and efficient mining, which could further be enhanced through technological breakthroughs in areas such as in-situ leaching a mining process used to recover minerals such as copper and uranium through boreholes drilled into a deposit , block caving an underground mining method that uses gravity to exploit ore bodies located at depth or bio mining a technique for extracting metals from ores and other solid materials typically using prokaryotes or fungi. This contrasts with the volume-oriented strategy over the previous decade. Substitution to reduce demand - Substitution of metals in various applications, will rise in the coming decades, although we believe the pace of substitution has already peaked during the commodities super-cycle period when most metal substitutes were researched on and technological innovations initiated. Demand themes Metals consumption growth to slow - Although consumption of key metals including iron ore steel and base metals will grow over the next few decades, the rampant growth witnessed during the decade prior to is unlikely to return. India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves at around 2, Companies will need to adapt their corporate strategy to the low-carbon economy. Market volatility and a downturn in commodity prices have created a new normal where cost cuts, automation and operational efficiency are vitally important. It will be key for companies to work together with other stakeholders in order to understand the types of data that should be made available and the appropriate format that data disclosure should take, in order to ensure standardization, usefulness and impact.

Coal to shift east, then peak - Both coal production and consumption will shift to the east, as countries such as India, Indonesia and Vietnam increase coal as a source of power generation, while countries such as the US, Canada and those of the EU tighten environmental regulations and invest in clean energy.

Iron ore production in the country increased from Improvements in government relations may help ease obstacles to investment, such as high royalty rates, permitting challenges, and uncertain tax rules. India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves at around 2, Access to resources Companies will need to venture into frontier mining areas.

global mining industry outlook 2018

We reiterate that the coal industry will face particular scrutiny, underscored by major banks refusing to fund new projects. Environmental criticism will remain the major impediment to deep sea mining in future.

Mining industry analysis 2018

To spread the risk of new capital-intensive projects, these financing solutions are likely to continue to grow. Environmental criticism will remain the major impediment to deep sea mining in future. While recycling will not necessarily reduce overall metals consumption, it will reduce primary non-recycled metal consumption. Environmental regulations to target pollution, water Mineral extraction and smelting, among the most power intensive and environmentally disruptive sectors, will come under increasing social, investor and regulatory pressure to lower emissions and reduce environmental impact. They provide real time aerial footage and 3D maps of mining sites with significant cost savings compared to planes and faster and more accurate measurements of stockpiles. Despite this, the sector will continue to face challenges due to the country's inadequate operatingenvironment, mining royalties and the decision to cancel iron ore mining permits in Goa. In the search for high-grade ore deposits, deep sea and asteroid mining will be increasingly explored by governments and companies. We have identified the following seven drivers that we believe will shape the mining and metals sector. For instance, we expect refined nickel will increasingly lose its prominence to cheaper alternative, nickel pig iron. Given that low-emission energy and transportation systems are more mineral-intensive than their fossil fuel-based counterparts, the transition provides a great opportunity for the mining sector. As such we expect these countries to lead the way in terms of production growth for both metals in the coming decade.

Local opposition to mining projects over usage of scarce freshwater resources will intensify, leading to project delays, environmental fines and, in some cases, severe regulatory crackdowns on the mining industry.

Meaningful efforts to reduce the environmental impact of the extractive industries require significant up-front costs, while the long-term cost savings and reputational boost will benefit companies that are ahead o the curve in prioritising green strategies.

Mining industry challenges 2018

Digitalised mining operations, enabled by the deployment of Internet of Things IoT applications, will see the shift of the competitive edge to developed markets over emerging markets, as the use of advanced technology requires the availability of strong network connectivity, power and highly skilled labour rather than the advantage of cheap labour in traditional low-cost producers. Environmental regulations to target pollution, water Mineral extraction and smelting, among the most power intensive and environmentally disruptive sectors, will come under increasing social, investor and regulatory pressure to lower emissions and reduce environmental impact. As traditional and known reserves start to deplete and ore-grades fall, rising mineral prices will enable riskier projects to gain commercial viability, significantly rewarding pioneers with the technological know-how and capital. Iron ore production in the country increased from Companies may also seek to develop joint ventures similar to those observed in the oil and gas sector in order to reduce their exposure to a particular project or jurisdiction and may also consider service agreements. In the search for high-grade ore deposits, deep sea and asteroid mining will be increasingly explored by governments and companies. India holds a fair advantage in cost of production and conversion costs in steel and alumina. Here we present a summary of the mining industry trends and issues presented in the Deloitte report: 1.

For instance, we expect refined nickel will increasingly lose its prominence to cheaper alternative, nickel pig iron. Asteroid mining exploration is scheduled to start shortly after between - through Deep Space Industries and Planetary Resources.

global mining industry overview

Innovations with high start-up costs or that may impact cash flow or license to operate are often dismissed.

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Seven trends that will shape the future of mining and metals