Market Research Report
Global Surface Mining Market - 2020-2027
|Global Surface Mining Market - 2020-2027|
Published: February 24, 2021
Content info: 180 Pages
Delivery time: 2 business days
The surface mining market size was worth US$ XX billion in 2018 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX % during the forecast period (2020-2027).
Surface mining is the extraction of ore bodies by removing the overlying overburden. Almost two-thirds of the world's yearly mineral production is extracted by surface mining because it provides more safety, high production and less investment. It is done for the extraction of various minerals such as coal, zinc, manganese, gypsum, metal and various other minerals. There are numerous types of surface mining methods, but some of the most common are open-pit mining, quarrying and strip mining. These methods differ based on the techniques used, geological properties and the minerals produced. The mining method generally utilizes heavy earthmovers such as draglines, shovels and other excavators to remove the overburden and ore body.
The global surface mining market growth is driven by the increasing demand for valuable minerals available in primary layers, coal, and the advancement of technologies in the mining sector.
The increasing demand for coal mining projects is expected to drive market growth.
One and the most forefront runner/a major growth factor for surface mining is due to the huge demand for coal in various industries for multiple purposes. Coal is one of the primary fuels used worldwide for producing energy. According to the Economic Times Report, 2020, coal demand is expected to grow by 2.6% in 2021 globally. As coal is also used in manufacturing steel, the primary focus of mining companies is to produce metallurgical coal with advanced coal mining projects aims production of 40 Mtpa metallurgical coal. According to the International Energy Association report, 2020, various mining projects in Australia recently started the mining operations with increased production. Mach Energy's Mount Pleasant thermal coal project is targeted to produce 10.5 Mtpa of coal. Queensland, QCoal's Byerwen Coal Project started shipments of metallurgical coal in 2019. The opencast mine could reach a 10 Mtpa metallurgical coal production rate in 2021 after significant site expansion.
Surface mining is responsible for polluting air and water, harming wildlife and habitat, and leading to permanent land damages. According to the People's World report, 2020, the opening of an Australian open-pit mine in the Bighorn area of the Rocky Mountains was cancelled after the Canadian government opposed it. As it would involve cutting trees, dumping of tailings into valleys and the resulting topography changes, such as mountain top removal and mining, increase the risk of flooding, affect the native species, decreased water quantity and quality.
COVID-19 Impact Analysis
Amid the pandemic, all the mining activities were paused for several months worldwide, which resulted in substantial financial losses to the sector. Shutting of various construction and automotive industries resulted in decreasing demand for metals. As surface mining is dependent on market demand, it also had to face a huge downfall. Furthermore, this resulted in the shutting of various operating mines worldwide and the unemployment of the workers. According to the Statista report, 2021, the opening of 77 mines was kept on hold due to the pandemic. However, after the pandemic, the mining sector started with less than 50% production and workforce.
On the other hand, the mining sector aims to recover all the losses by 2022 by starting new projects. For instance, In July 2020, the New South Wales Mineral Council issued a report on the opening of 32 mining projects and their financial impact in the region. Coal accounts for 21 of those projects, with a projected investment of over AUD 6 billion. The report also attributes the importance of these projects as an essential contribution to post-covid economic recovery. The Indian Government has also been taking various initiatives such as distributing new 41 coal blocks to private companies to increase the revenue from the mining sector.
By type of mining methods, the surface mining market is classified into open cast mining, quarry, strip mining, and others.
Opencast mining is also known as open-pit mining, is a surface mining technique of extracting rock or minerals from the earth by their removal from an open-air pit, sometimes known as a borrow.
The increasing demand for open cast mining is because it provides increased efficiency compared to other methods, greater safety, and high recovery for minerals extraction. According to the Statista report, 2018, the production of coal from open cast mining in New Zealand was accounted for 1.119 million metric tons in 2018.
Also, it is the fastest-growing method towards sustainable mining. According to the Economic Times Report, 2020, Coal India Limited plans to appoint international repute mine developers and operators(MDA) to increase 12 open cast mines production by 162 million tonnes with new technologies, higher and efficient outputs. Moreover, according to the Australian Mining report, 2019, Australian company Blackham Resources aims to expand its Matilda-Wiluna gold operation into a mine that produces 200,000 ounces a year this project. However, the company is already growing at the site at a rate of almost 20,000 ounces each quarter.
The Asia Pacific holds the largest market for surface mining globally and is forecasted to continue its dominance in the market as high investment in countries, including China, Indonesia, Australia, and Malaysia for various new mining projects, is expected to boost the market. Governments have also shown their interest in mineral and metal extraction, which is likely to drive surface mining demand. Moreover, the growing market for technically advanced techniques and government regulations forcing the mining companies to modify the mining techniques is estimated to fuel the upcoming surface mining market.
North America is also one of the emerging regions in the surface mining market. For instance, According to the NES Fircoft report, 2020, Sonora, Mexico, contains one of the world's most extensive high-grade lithium resources. Sonora Lithium (SLL), a joint venture of Bacanora Minerals and Ganfeng Lithium, will open an opencast mine with a production capacity of 17,500 tons per annum of lithium carbonate in the first stage. Phase two will double the production capacity to 35,000tpa with an estimated mine life of 19 years.
The surface mining market is consolidated and highly competitive with the presence of a few local players followed by the global companies who contribute to the market growth. In addition, some of the key players contributing to the growth of the market are Barrick Gold Corporation, BHP Billiton, Vale S.A, Tata Steel, Anglo American Plc, Jiangxi Copper, China Shenhua Energy, Dundee Precious Metals, and Glen Core. The major players are adopting various new strategies to dominate the market, such as launching new technologies, acquisitions, and collaborations are some of the key factors which are responsible for the growth of the surface mining market globally.
Overview: Barrick Gold Corporation is a leading mining company for producing gold copper with 16 sites in 13 countries in South and North America, Papua New Guinea, Africa and South Arabia. It is headquartered in Toronto, Canada.
Product Portfolio: Barrick Gold Corporation extracts the world's most prospective gold and copper deposits, and it also performs exploration operations.
Key Development: In 2019, the company operated Nevada Gold Mines, which produced 765,000oz of gold and 35 million pounds of copper.
The surface mining market report would provide access to an approx: 63market data table, 53 figures and 240 pages.