Issues Facing the Mining Industry in 2015

January 21, 2015

 

A new report is shedding light on some of the main issues that will likely impact the mining industry in 2015. Let's take a close look at some of those key issues.

 

  • Mining companies need to be ready for renovation. Unexpected costs are expected to crop up. It's the nature of the business. The mining companies will need to be ready to be flexible, whether it comes to budget, technology or any other issue.
  • Uncertain future of financing. The mining industry has seen some challenges in recent years. While there has been encouraging news about mine safety, there have still been many mine closures and layoffs. Global mining stocks are down 43% since 2010. Equity investors seem to be keeping skeptical eyes towards the mining industry. Chinese investors used to be among the top financiers of the industry. The report seems to indicate that investors that have shied away from the industry have been reluctant to return.
  • Smaller companies are struggling. Some smaller companies have been forced to make difficult cost-cutting decisions. Some are waiving current expenditures and launch new dividends. They are also looking for new revenue streams.
  • Government interaction. The mining industry has been dealing with government regulations since the beginning of mining oversight. Some government are changing or relaxing regulations as a handful of mining companies close marginal mines and put some sites into care and maintenance. Meantime, some governments are tightening the rules facing mines.

 

There are other issues explored as well. It seems one common theme is the need to cut costs while still remaining profitable. Looking at purchasing reliable mining equipment at an affordable cost certainly fits under that category.