Major Challenges Confronted Mining Industry
The mining industry has entered a new era. Demand continues to be stoked by strong growth in emerging markets. Supply is increasingly constrained, as development projects become more complex and are typically in more remote, unfamiliar territory. The cost base of the industry has permanently changed as lower grades and shortages of labour take effect.
To keep up with demand, the Top 40 have announced more than $300 billion of capital programs with over $120 billion planned for 2011, more than double the total 2010 spend. While not all will be completed, the sheer size and volume of the announced capital projects demonstrates an industry where fulfilling seemingly insatiable demand is the top priority.
Investment in new supply is increasingly focused on emerging markets, and by new faces, as customers and governments enter the industry with the primary goal of securing supply. Mining companies like Hongxing Machinery specializing in manufacturing the best hammer crusher saw moderate growth in 2010, and the forecast for 2011 is strong as global demand for base and precious metals continues to climb. Prices for these commodities are expected to rise with the demand increase. A return to growth has also seen a shift of focus to more non-traditional mining locations.
Despite these improvements, mining companies continue to face some major challenges for sustainable growth. A rise in demand, from the developing world in particular, has made performance improvement and cost savings key challenges within the industry. The rise of resource nationalism is of major concern to global mining companies. Miners are facing a political landscape that has become more intertwined with operations, resulting in a direct hit to bottom lines. Taxation has become an issue at the forefront of CEOs’ minds. Mining companies are also contending with a shortage of skilled workers, particularly in developing markets.vibrating screen:http://www.crusher-machine.com/8.html
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Company transactions picked up dramatically in 2010, and the expectation for 2011 is for a large number of mining deals. There are a number of companies holding significant cash, looking for access to new reserves or expansion into new territories. Improving safety and reducing the environmental impact will be ongoing goals for the mining industry. ‘Low-carbon’ production of minerals will become increasingly important in the years to come.
Hongxing Machinery delivers a range of services to help mining companies address the many challenges they face today and to help them to prepare for the upturn in the future. Last year we reported a growing optimism in the mining industry and noted that demand fundamentals were driving the industry back to boom times. The 2010 results have delivered on this expectation, but it is clear that the game has changed. As a professional and the best mining machinery manufacturer in China, Hongxing Machinery is always ready to provide the superior dryer machine with the best quality and the most competitive price.
These are interesting times for the mining industry, with ever increasing scrutiny from governments, customers and other stakeholders. Growing demand for its products, driven by emerging markets, highlights that supply will be the most significant challenge it will face. The shift in balance is a positive one for the mining industry, but it will not be simple and will take some managing.
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