Underground Mining Market

Underground Mining

• Underground mines are used to exploit high grade, deep ore bodies. However, there is no limiting grade above which underground mining is carried out, nor is there a limiting depth below which underground mining is always done. It depends on the mining method used. 

Rapid Industrialization in Developing Nations Driving Underground Mining Market

• Manufacturing and service industries in developing countries such as India, China, Vietnam, Indonesia, and Brazil have been expanding since the last few years. Construction and shipbuilding industries in Asia Pacific are expanding at a rapid pace, due to the large number of projects underway. This is anticipated to fuel the demand for metals and minerals. Increase in the disposable income of consumers and rise in the demand for durable goods such as automobiles and household equipment with high mineral or metal content are expected to boost the underground mining market.
• Several international developers plan to establish their businesses through FDI incentive schemes in developing economies. This is estimated to indirectly boost the economies of these particular country and propel industrialization. Rise in industrialization is anticipated to augment the growth of the underground mining market, primarily due to the increase in the demand for metal products.
• Growth in the production of electric vehicles in Europe and the U.S. is also driving the underground mining market. Furthermore, rise in the demand for coal in Eastern Europe and construction of new coal-based power plants in Poland, Greece, and the Balkan regions are other factors boosting the underground mining market in the region.

Implementation of IoT in Mining Provides Opportunities to Underground Mining Market

• The implementation of IoT in the underground mining market provides lucrative opportunities to companies to increase their productivity. IoT can also be applied in unmanned vehicles. Driverless mine vehicles operate autonomously. These GPS-powered vehicles can fully interact with each other to minimize delays and fuel costs. IoT can be utilized for predictive maintenance, as predictive maintenance technologies help determine precisely when an equipment requires maintenance. Predictive maintenance can also reduce downtime by preventing the untimely breakdown of any crucial equipment during the operation cycle. Combining analytics with inventory management enables companies to ensure the timely and right stock of inventory, thereby improving their inventory management.
• The implementation of technologies such as cloud-based logistics and load-sharing platforms can enable coal mining companies to optimize their supply chains. Additionally, companies can use digital tools to execute and manage their sales contracts, determine prices in real-time, and manage inventories and product flows in ways that control risks and optimize costs. Thus, the implementation of IoT in mining activities is expected to offer lucrative opportunities to the underground mining market. 

Expansions, Acquisitions, and New Contracts in Underground Mining Market

• In September 2018, Thiess, a subsidiary of CIMIC Group, bagged a contract worth US$ 134.94 Mn from BHP Nickel West. According to the contract, Thiess will provide underground mining services and equipment to support Leinster Underground Mine’s lateral development and ore production for a term of at least two years.
• In August 2018, African Underground Mining Services (AUMS) received a mining contract worth US$ 160 Mn from Roxgold, a Canada-based gold mining company. As per the contract, AUMS will offer underground mining services for Zone 55 in the Yaramoko gold mine and Bagassi South underground mine. 

Latin America Prominent Underground Mining Market

• Latin America dominated the global underground mining market in 2018. Brazil is one of the largest producers of niobium, bauxite, and tin, and the second-largest producer of iron ore and manganese in the world.
• Brazil is expected to be a highly attractive country in the underground mining market in Latin America during the forecast period. More than 8,000 companies operate in the mining industry in Brazil. Among these, Vale S.A. is the leading player; it accounts for almost 80% share of the total mining sales in the country.
• The underground mining market in Asia Pacific is estimated to expand at a substantial pace during the forecast period. China has rich reserves of mineral resources. All the known minerals in the world are available in the country. Investments in the geological exploration of non-oil and gas minerals stood at ~US$ 3 Bn in China in 2017.
• Australia is another major country of the underground mining market in Asia Pacific. It is among the top five producers of gold, iron ore, lead, zinc, and nickel in the world. It also has the largest uranium and fourth-largest black coal resources in the world.
• The underground mining market in Europe is projected to expand at a stagnant pace during the forecast period.

Highly Competitive Underground Mining Market with Dominance of Top Players

• The global underground mining market is highly fragmented, with the presence of a large number of local, regional, and global players.
• Key players operating in the global underground mining market are
  • BHP
  • Rio Tinto
  • Glencore
  • Vale S.A.
  • Alcoa Corporation
  • Coal India Ltd
  • Anglo American Plc
  • Barminco
  • CIMIC Group Limited
  • OZ Minerals
  • The Redpath Group
  • Thyssen Mining
  • China Shenhua Energy Company Limited
  • Norilsk Nickel Group
  • Implats Platinum Limited
  • Amur Minerals Corporation
  • GBF Underground Mining Company
  • Freeport-McMoRan.