Mining into the 21st Century

Six industry trends will have significant effect on the way mining equipment is designed and supported in the years ahead: 1. MINING IS MIGRATING TO LESSER DEVELOPED PARTS OF THE WORLD The global recession of the early 1980's drove down commodity prices and intensified cost competition. This caused a fairly dramatic trend in mining away from higher cost operations in developed countries to richer, lower cost deposits in developing countries. Miners operating in lesser developed parts of the world will place higher value on rugged, durable designs that can live in more difficult and sometimes abusive conditions. They need engines and power train systems that are more tolerant of a wide variation in fuel quality and oil specifications. They'll require machines that are simpler to operate, simpler to maintain, simpler to troubleshoot and simpler to repair. And they'll require creative means of support in getting technical information, parts and components to remote operational sites. Mining equipment in the future will be more durable and simple than it is today, and product support will grow in importance as purchasing criterion. 2. THE MINING INDUSTRY IS CONSOLIDATING An intense amount of corporate acquisition and industry consolidation activity is occurring, to the point that today just 50 mining companies account for 55% of the western world non-fuel mineral production. Consolidation will continue, leading in the future to an industry structure weighted heavily toward a few key global mining houses.