April 8, 2013, 6:15 a.m. EDT
SUGAR LAND, TX, Apr 08, 2013 (Marketwired via COMTEX) — Written by John Egan for Industrial Info Resources (Sugar Land, Texas) — Global demand for mined resources, including coal, iron, copper, gold and aluminum (via bauxite), has spiked over the past 10 years, driving a worldwide mining boom. Resource-rich countries, including Australia, Brazil, Canada, China, Peru, Russia and South Africa, have benefited from growing capital expenditures aimed at developing mining projects.
Countries like China and India are investing worldwide to secure resources that will feed growing domestic demand. Toward the end of 2012, demand began to taper off in some markets, leading major mining firms, including BHP Billiton /quotes/zigman/270355/quotes/nls/bhp BHP +0.18% and Rio Tinto plc /quotes/zigman/182541/quotes/nls/rio RIO +0.04% to cut back production and capital spending, effectively ending the mining boom. Capital expenditures continue to decline in 2013.
However, the bow wave of mining projects that have kicked off over the past three years will push actual capital spending in 2013 higher than 2012. At the same time, many mining firms are putting off new project construction, so construction starts are expected to decline in 2013, leading to a reduction in actual spending for 2014. Peabody Energy has slashed 2013 capital expenditure plans 50% to between $450 million and $550 million, in order to pay off debt.
While the short-term prospects for mining project development remain volatile, the long-term prospects for the industry are bright as growing urbanization in developing nations will continue to boost demand for mined products.
Globally, Industrial Info is tracking just less than 5,000 mining projects totaling $1.5 trillion. Industrial Info has just released the Global Mining Industry Outlook, which provides a comprehensive analysis of project spending and trends in the mining sector. For immediate access to the Outlook click on the link to purchase online or contact Industrial Info at 1-800-762-3361 begin_of_the_skype_highlighting 1-800-762-3361 FREE end_of_the_skype_highlighting.
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