The Future of the Global Mining Sector

The mining industry is cyclical, but those are more than normal business cycles. In the early 2000s the industry saw the start of China as a game changer for the mining industry which lead to catch phrases like ‘stronger for longer’ and even ‘stronger forever’. Enter the global financial crises and the more recent slow-down in the Chinese economy and confidence that the future is bright has dimmed! This paper looks at the long-term forces that are likely to impact the global mining sector and explain why the industry has an excellent future. However, the industry is not without its many challenges and while demand may be in a prolonged step change, the ability to generate profits will depend on the fitness of each asset and company.The author also discusses the hated terms of ‘boom’ and ‘bust’ and considers how the industry can reduce them, but normally exacerbates them. The ability of the junior sector to raise funds being a primary example and one that remains closed to all but the very best exploration assets. There is also consideration of Australia’s position as a mining country in the future world.CITATION:Goldsmith, T, 2014. The future of the global mining sector, in Proceedings Ninth International Mining Geology Conference 2014 , pp 15–20 (The Australasian Institute of Mining and Metallurgy: Melbourne).