Energy Issues Drive the Metals, Minerals, and Mining Industry in 2002

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). According to the recently released 2002 Industrial Outlook, the metals, minerals, and mining industry will see a slight decrease in capital spending in 2002. This decrease can be attributed to high energy prices, poor metals markets, and an anemic steel industry, which has seen 25 companies file for bankruptcy protection since 1998. However, several sectors are showing increases in capital spending activity, these include cement, coal, and aluminum.

The following is a listing of some of the major issues that will dominate the industry next year. New cement plant capacity will continue to come on line as a five-year expansion cycle nears its end. Coal mine production will increase due to expanding energy markets. Diamonds and Oil Sands continue to remain hot mining developments in Canada. Some companies will find it more profitable to sell electricity than to operate their mining/smelting operations.

Will aluminum smelters restart in the Northwest? Will the government step in to subsidize the steel industry or will a mega-conglomerate integrated steel company emerge? Will coal companies continue to expand in 2002? Answers to these issues will dominate the metals and minerals industry in 2002. These issues and more are detailed in the recently released 2002 Industrial Outlook published by Industrial Information Resources and available on CD-ROM.