The global mining sector is on the cusp of a turnaround with Asia-Pacific (APAC) leading from the front in terms of number of projects and capital expenditure (capex) value over the next two years, says leading data and analytics company GlobalData.
According to GlobalData, globally 483 projects are either currently in construction or slated to commence construction by 2020 with a capex of US$253bn. Out of this, projects currently in construction represent a total capex of US$162bn.
Ankita Awasthi, Senior Mining Analyst at GlobalData, says: “The global mining sector has been reeling under declining commodity prices, increasing production costs and declining ore grades, which have negatively impacted investment. However, a turnaround is starting to be seen with APAC leading from the front.”
APAC is forecast to account for the largest share of the total project count at 38%, followed by the Middle East and Africa (15%), Former Soviet Union (14%) and North America (10%). In terms of investment value, spend in APAC is proportionately lower at 23% of the total, followed by the Middle East and Africa (20%), Oceania (18%) and North America (15%).
Commodities with the greatest spending planned or in progress are coal (24%), gold (19%), copper (18%) and iron ore (9%), which collectively have 240 projects under construction and 80 at the feasibility stage.
The largest projects include Adani’s $16.5bn Carmichael Coal Mine in Queensland, Australia; Novagold Resources/Barrick Gold’s $6.6bn Donlin Gold Project in Alaska, both are under feasibility stage and First Quantum Minerals’ $6.3bn Cobre Panama Project, which is under construction stage.
Overall the top 10 mining companies—Adani Group, Sibanye Gold Ltd, Saudi Arabian Mining Co, Barrick Gold Corporation, Vale, First Quantum Minerals Ltd, China Shenhua Energy Co Ltd, Freeport-McMoRan Inc, Newmont Mining Corporation, Seabridge Gold Inc., and BHP Billiton—account for 30% of the total capex.