United States Mining Report

 Published On: May, 2016 |    No of Pages: 66 |  Published By: BMI Mining | Format: PDF
Request Free Sample

BMI View: 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 Trends
■ The 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.

BMI Industry View ... 7
Table: United States Mining Industry Value Forecast (2014-2020) 7
SWOT ...... 8
Industry Forecast .. 10
Coal: Downward Spiral To Accelerate ...... 10
Table: Coal Production Forecast (US 2012-2020) . . . . . 10
Table: United States - Key Coal Projects . . . 11
Table: US Coal Bankruptcies . . . 13
Copper: Limited Growth Beyond 2016 ...... 16
Table: Copper Production Forecast (United States 2012-2020) . . . 16
Table: United States - Copper Projects . . . . . 16
Gold: Downward Trend To Persist . 20
Table: Gold Production Forecast (US 2012-2020) . . . . . 21
Table: US - Select Gold Mine Projects . . . . . 21
Lead: Regulatory Environment To Accelerate Decline ... 24
Table: Lead Production Forecast (United States 2012-2020) 24
Industry Risk/Reward Index ... 27
United States Risk/Reward Index .... 27
Americas: Risk/Reward Index ........ 28
Key Takeaways ........ 28
Latest Revisions ....... 29
Table: Americas - Mining Risk/Reward Index . . . . 30
Regulatory Development ........ 31
Commodities Forecast .. 35
Commodities Outlook . 35
Table: BMI Commodities Price Forecasts . . 35
Competitive Landscape . 36
Table: United States - Largest Listed Mining Companies' Financial Data, 2015 . . . . 37
Company Profile .... 38
Global Company Strategy - Newmont Mining - Q3 2016  38
Table: Select Commodities - Price Forecasts . . . . 40
Table: Newmont Mining - Key Projects . . . . 44
Table: Newmont Mining - Key Financial Data . . . 45
Freeport-McMoRan - Q3 2016 ....... 46
Table: Select Commodities - Price Forecasts . . . . 48
Table: Freeport McMoRan - Key Financial Data 53
Company Profile - Peabody Energy - Q3 2016 .... 54
Table: Peabody Energy - Key Financial Data . . . . 57
Regional Overview  58
Methodology . 63
Industry Forecast Methodology .... 63
Sources  64
Risk/Reward Index Methodology ... 65
Table: Weighting Of Indicators . 66
If the above report does not have the information suitable for your business, we can provide custom research that can be lucrative for your business or enhance your profession.