United States Mining Report Q3 2016 - New Report Available

From: Fast Market Research, Inc.
Published: Wed Jun 01 2016


The United States' mining sector will experience production declines in the coal, gold and lead industries due to structurally lower commodity prices and elevated operating costs over the forecast period to 2020 .Latest Updates & Structural TrendsThe US' mining industry value will decline through 2018, as elevated costs and structurally lower prices weigh on mineral growth. In particular, the declining coal sector, which accounts for nearly two thirds of the US mining industry value, will drag down mining industry value, which we forecast to contract by an average of 4.3% annually over 2016-2020. In absolute terms, we expect the US mining industry value to decline from USD73.8bn in 2016 to USD68.6bn by 2020.We have revised down our US lead production forecast for 2016 from 0.5% y-o-y growth to a contraction of 2.0% based on weak prices and capacity cuts from major miners. We now expect US lead production to contract by an annual average of 2.3% during 2016-2020, as output drops from 367 thousand tonnes (kt) to 334kt. While the US will remain a top producer, the country will lose global production share, falling from 7.1% of global lead output in 2016 to 6.1% of the global total by 2020.Weak prices and elevated production costs will continue to drive both major and junior mining firms to defer major investments, scale back production and divest high-cost assets. As a result, the US mining industry will experience significant mothballing and retrenchment over the coming quarters. Key deals include Freeport's USD1.0bn sale of a 13.0% stake in the Morenci copper mine to minority owner Sumitomo Metal Mining and Kinross Gold's USD610mn purchase of various gold mines from Barrick Gold.Despite various headwinds, we expect that the US will remain a prominent long-term destination for global mining investment. We highlight the country's vast natural resources, well-developed mining industry and infrastructure and stable political environment, all of which will remain a draw for overseas miners. Furthermore, the country's mature capital markets allow junior firms to find financing opportunities, even if credit remains more constrained following the global financial crisis.

Full Report Details at
- http://www.fastmr.com/prod/1172880_united_states_mining_report.aspx?afid=301

The United States Mining Report has been researched at source and features BMI Research's mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.

BMI's United States Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in United States.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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