(MENAFNEditorial)
More Chinese miners will come under duress from the economic slowdown in China over the coming years. Falling mineral prices and Beijing's gradual embrace of free market economics will threaten the survival of many small and private min ing operations.
We believe the economic slowdown in China will turn a decade-long mining boom into bust for many domestic miners. With cost containment being the key lever in the face of falling commodity prices Chinese miners will be forced to recalibrate their investment approach over the coming quarters. While state-owned miners are generally more insulated from the weakness in mineral prices Beijing's gradual embrace of free market economics should pave the way for some much needed consolidation and restructuring in the mining industry.
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In a bid to tame overcapacity and reduce environmental pollution the Chinese government plans to shut down smaller and inefficient mines while mid-sized mines will be merged and production consolidated into giant vertically integrated state-owned outfits. For instance there is a national drive in the coal sector to create 14 giant 'coal-power-rail' hubs with each having a production capacity of at least 100mn tonnes per annum (mntpa). That said the production losses that will inevitably occur with the closure of smaller mines will give way to output gains down the road due to the efficiency gains associated with bigger and more integrated mining operations.
The downshift in China's economy is set to force a growing number of miners to scale back their ambitions as they struggle to maintain profit margins in the face of falling mineral prices. However we expect miners operating in certain sectors to prove more resilient. For instance lead mining will be less affected given its primary use in the production of lead-acid batteries. In contrast other minerals such as iron ore and bauxite will experience weaker...
The China Mining Report has been researched at source and features Business Monitor International (BMI)'s mining and commodity forecasts for metals minerals and gems covering all major indicators including reserves production exports and values. The report also analyses trends and prospects national and multinational companies and changes in the regulatory environment.
BMI's China Mining Report provides industry strategists service companies company analysts and consultants government departments trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in China.
Key Benefits
* Use BMI's independent industry forecasts on China to test other views - a key input for successful budgeting and planning in this mining market.
* Target business opportunities and risks in China's mining sector through our reviews of latest mining industry trends regulatory changes and major deals projects and investments in China.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. KPIs and latest activity) Key Projects Tables and Competitive Landscape Tables.
Coverage
Executive Summary
Summary of BMI's key forecasts and industry analysis covering mining reserves supply demand and prices plus analysis of landmark company developments and key changes in the regulatory environment.
Business Environment Ratings
BMI's Mining Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (mining companies and support service providers) in the regional mining market. The ratings methodology makes sophisticated use of over 40 industry economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.
Key Projects
Details and analysis of all current and planned developments (new ventures capacity expansion and other investments) across the sector broken down by metal/ore.
BMI Industry Forecasts
Historic data series (2009-2012) and forecasts to end-2017 for all key industry and economic indicators (see list below) supported by explicit assumptions plus analysis of key downside risks to the main forecast. Indicators include:
* Mining Industry: Industry size (US$mn) real growth (%) % of GDP employment ('000) workforce as % of total workforce average wage (US$).
* Output:Production volumes ('000 tonnes carats etc.) for all major metals minerals ores and gems mined in each state including bauxite copper gold coal lead silver tin titanium uranium zinc etc.
* Exports: Value of exports (US$mn) for all major metals minerals ores and gems mined in each state .
* Commodity Markets: Global demand supply stocks and benchmark prices (US$) for aluminium copper lead nickel tin zinc gold and steel.
BMI Macroeconomic Forecasts
BMI forecasts to end-2017 for all headline macroeconomic indicators including real GDP growth (%) inflation (%) fiscal balance (% of GDP) trade balance (US$bn) current account (US$bn) and external debt (US$bn).
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing by US$ sales % share of total sales number of employees year established market cap/NAV ownership structure production and % market share.
Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
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