Demand to grow more than 5% annually through 2011
Global demand for specialized mining machinery and equipment (including separately sold parts and attachments) is projected to increase over five percent per year through 2011 to more than $30 billion. Advances will be fueled by continued demand for metals such as iron ore and copper. Also, the ongoing global thirst for energy will boost coal output.
Prices for mineable commodities (especially metals like copper and iron ore) have shown growth in recent years. This has led to intensified efforts to mine metal ores, and thus has generated strong demand for products like mining machinery. Meanwhile, coal, facing dwindling reserves in numerous countries, remains in demand as an alternative source of energy in an era of high oil and gas prices, while demand for industrial minerals (clays, sand and gravel, stone and a myriad of others) has benefitted from the general upsurge in commodities markets.
Gains in China, India to boost Asia/Pacific demand
China has shown strong growth in mining equipment demand, a direct result of investment in its local mining industry. For example, coal output nearly doubled from 2001 to 2006, reflecting the nation鈥檚 intense need for energy. China is also a major source of commodities such as iron ore and bauxite. Other major Asian markets for mining equipment include Australia and India. Like China, India has experienced a major growth in coal output. Australia is a leading producer of bauxite and iron ore. Asia is expected to post strong gains in mining equipment demand through 2011, reflecting further gains in the China and India markets. Latin America, which has extensive mineable resources, will also post above average growth, reflecting more mining investment in nations like Brazil. Eastern Europe will also continue to provide opportunities, particularly in Russia.
Global industry leaders look to developing countries for new mineable resources
Despite their maturity as markets, the largest producers of mining equipment are generally found in the United States and the industrialized nations of Western Europe, as well as Japan. Such countries have a long history and much expertise in the development of capital equipment industries of all types, which many have leveraged in mining machinery. However, China has emerged as a major producer, due in large part to the nation鈥檚 growing mining industry. With the largest deposits of mineable resources generally located in developing countries, the major multinationals that dominate world mining equipment production are increasingly moving production capacity to these areas, a trend that is expected to continue.