Compared to previous decades, the metals and mining industries have boomed over the last five years. In mining, iron ore, the most important ore by volume, has led the way averaging annual growth of 12%. Bauxite mining averaged 6% annual expansion. However, for other ores growth has been more modest, at under 5%.
The key story in mining over the last five years has been the growth in Chinese mining. For metal ores such as Iron, Lead, Tin, and Zinc, China is now the world�s leading miner, having achieved double digit CAGR production growth over the last five years.
Although the mining industry is booming, miners face challenges: there is a shortage of skilled people and equipment, and companies need to bring new projects on stream, rapidly. However, the costs of new projects are escalating. In South Africa and Chile, energy shortages are hampering production. A shortage of spare parts has made asset management particularly challenging. A massive increase in shipping and energy costs also dents profitability.
