With so much “doom and gloom” in the media about the global mining industry, it is easy to get swept up in the current atmosphere of fear and apprehension. As a manufacturer of premium core trays such as the Discoverer®  Core Sample Trays and leading supplier of mining products, we at Dynamics G-Ex are certainly not immune to these negative attitudes. 

We understand that with Chinese demand slowing and global production continuing, mining companies have had little choice but to sell commodities at record-low prices, lay off workers, axe dividends and sell off assets, leaving analysts to debate over the state of the industry.

“Volatility will be a challenge for the mining and metals sector for the foreseeable future and BREXIT has brought additional uncertainty to this, with questions on how it may impact an already slow growth global economy. Locally, the Australian Federal election has potentially provided further uncertainty,” said Ernst & Young’s Global Mining & Metal Advisory Leader Paul Mitchell in EY’s latest report titled “Navigating Volatility: Do you Change Your Business or the Way Your Business Works?” 

“Mining companies must move faster to generate cash and strengthen their balance sheets if they are to successfully navigate ongoing volatility.”

But as often happens with economic cycles of boom and bust, there will be a recovery phase. When recovery will begin though no analyst can confidently predict. So while the jury is still out, we at Dynamics G-Ex are hopeful that positive change is on the horizon. And it appears we are not alone in our sentiments.

A new report released by Allied Market Research supports our feelings. The report reveals that the world mining equipment market is expected to grow by 7.9% by 2022, equivalent to $150 billion in growth.

The study, titled “World Mining Equipment Market – Opportunities and Forecasts, 2015 – 2022” seems to fly in the face of current opinions. How is it possible for the world mining equipment market to grow when the industry is in a supposed downturn? 

The report cites several major factors that will contribute to the growth of this sector, namely:

  • rising demand for technologically advanced mining equipment
  • increasing usage of coal for heating and electricity generation
  • increasing construction of roads and railway tracks through hilly areas
  • rising demand for metal and mineral commodities
  • increasing consumption of natural resources i.e. coal, diamonds, uranium
  • increasing need for mineral fertilisers to improve agricultural supplements

And with the world population projected to increase to 11.2 billion people by the end of the 21st century and developing countries becoming more affluent, the longer term view for mining looks encouraging. 

While the study does set out some challenges such as the increasing cost of raw materials and strict government regulations, we at Dynamics G-Ex firmly believe that mining companies who adopt innovation strategies will be on the front foot. We even published a blog post about how innovation will drive industry improvement back in April (click here to read the post).

Other key findings in the report that indicates that the future of mining is not as bleak as analysts predict:

Asia-Pacific is anticipated to dominate the mining equipment market during the forecast period with main revenue-generating countries being Australia, India, China and Indonesia.

•Metal mining application segment is anticipated to have the fastest growth at 10.3% with coal mining to have impressive growth in India and China

•Mining drills and breakers segment is expected to exhibit fastest growth during the forecast period.

With the Australian state and federal governments prioritising the resource sector and scrambling to find initiatives that will stimulate the exploration industries, Mitchell states that companies should be “embedding continuous improvement in their DNA” if they are to survive short term volatility. At Dynamics G-Ex, we know no other way.

If you’re looking to partner with a customer-focused growth-minded mining supplier or just want more information about our Discoverer®  Core Sample Trays please contact our team on 1800 105 584 or +61 7 5482 6649.