Exclusive extracts from this 68-page-long report:
- Who are the key players?
Mining companies are highly concentrated, specialising in the extraction, processing, and marketing of minerals. The mining industry is dominated by large players based in the developed world. Nevertheless, leading emerging markets (EMs) with vast mineral resources have entered the stage over the past decade, creating mining companies – often state-owned – which now compete with historical leaders on global markets. […]
Groups analysed in this report include: Glencore, BHP Billiton, Rio Tinto, Jiangxi Copper, China Shenhua, Vale SA, Anglo American, Freeport-McMoRan, Coal India, and Codelco.
- What are the players' strategies?
The downturn in the mining industry has exacerbated rivalry between players over the past few years, and resulted in many companies turning to mergers and acquisitions, as well as asset sales, to survive. Taking advantage of their rivals' financial difficulties, Chinese companies have acquired numerous assets overseas: in 2016, China Molybdenum Co. acquired Freeport-McMoRan's share in the copper and cobalt Tenke mine, as well as the niobium and phosphate business from Anglo American, for $2.8bn, and $1.5bn, respectively. […]
- What are the players' key growth and profitability drivers?
Having been hit hard by the slump in metal prices over the past few years, mining companies are looking to reduce operational costs to increase margins, profitability, and returns to shareholders. To do so, miners are betting on new technologies that aim to streamline processes all along the value chain. Over the past few years for example, BHP Billiton has been rolling out drilling, trucking, and railing automation processes, which is enhancing the company's productivity, and cutting spending: operating costs were down 20% at BHP's Jimblebar mine in Australia, after the company deployed a fleet of autonomous trucks. […]