Giant mining enterprises of the world

4. Global demand for products

The demand for mining machinery primarily depends on the demand for natural resources. Today, minerals are widely recognized as strategically important for most sectors of the economy. Mining engineering is a fundamental link in the chain from mining to the production of semi-finished products and final products.

The record rise in prices for most minerals in the last decade has led to a revival of the development of existing deposits and the search for new deposits around the world. However, there was also a drop in prices for raw materials, which was associated with the financial crisis of 2008-2009. and low consumer demand. Moreover, mining is becoming increasingly difficult due to depletion of deposits. The issue of environmental safety of the regions where the deposits are located is also playing an increasingly important role.
For all of the above reasons, there is a decline in the growth rate of mining, which directly affects the demand for mining equipment.
There is a clear dependence on the crisis phenomena in the global economy in the quarry equipment market. For example, according to data on the volume of the mining equipment market (including crushers, conveyors, underground equipment, etc.), 2009 was marked by a decrease of 39% compared to the 2008 level. In 2010 and 2011, there was some recovery in consumption volumes in value terms - however, still below the 2008 level.
The geographic distribution of mining volumes can be characterized by the amount of mining equipment operating in different regions of the world: 43% of the total volume of all equipment is located in North America, 18% in Australia and Oceania, 12% in Latin America. There are more than 100 open-pit mines for coal, iron and gold in Australia. If we take into account the new copper, gold and coal mines in Indonesia and New Guinea, it is logical to place this region in second place after North America. Latin America is not far behind, with 88 fields being developed in 11 countries; many of them are the newest and among the largest in the world. Chile and Brazil dominate the region, but most mining centers are located in Mexico, Peru and Colombia. The region remains one of the largest in the world in terms of the volume of use of mining dump trucks and heavy and heavy-duty loaders.

The main demand for quarry equipment in value and quantity terms is provided by the markets of developing countries: China, India and Australia. In China today there is a steady increase in the need for energy resources, iron, bauxite and other raw materials to ensure economic growth and increase in the well-being of the population. In this regard, investments in mining activities in the country's coal mines are growing, equipment for which is mainly supplied by Chinese companies (with licenses from world market leaders or their own developments).

Major importers of mining equipment:

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  USA
  
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  Thailand
  
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  Russia
  
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  China
  
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  Canada
  
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  Australia
  
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  India
  
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  Singapore
  
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  Colombia
  
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  Belgium
  

Today, China remains the largest market for the consumption of engineering products for the mining sector, accounting for 48% of global demand. Another major consumption market is the Asia-Pacific region, especially India and Indonesia. Also driving the growth in demand for quarry equipment are the developing countries of Africa (especially Niger, Botswana, Ghana, etc.), Latin America (especially Chile and Peru), and the Middle East. It is worth noting that the share of countries in Western Europe and North America is gradually decreasing, which is associated with intensive mining over several decades, while in many developing countries the intensification of mining began relatively recently.
The global market for mining equipment is represented by several hundred manufacturers - from small private companies to large transnational giants. The former mainly produce small parts and components or simpler equipment. Large TNCs produce a wide range of engineering products and related services. It is likely that the mining equipment sector will become increasingly oligopolistic in the near future, due to the increasing influence of R&D and the technical complexity of new machinery and equipment. The mining engineering industry depends on only one type of consumer - mining companies. A lack of diversification in consumer choice also leaves mining equipment manufacturers highly exposed to commodity price volatility.