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Released February 16, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Both long- and short-term drivers are leading to an increase in global Metals & Minerals project activity, particularly in regard to environmental, social and governance (ESG)-related projects. In a Wednesday webinar, Industrial Info's Vice President of Metals & Minerals Industry Research, Joe Govreau, and Shaheen Chohan, vice president of Global Analytics, discussed this and other trends being seen in the industry.
Industrial Info is tracking approximately $46.59 billion in ESG projects related to the metals and minerals industry throughout the world. Demand drivers include metals for electric vehicles, which require more metals than combustion-engine vehicles, and wind turbine components. In addition, Industrial Info is tracking some spending for early projects aiming to manufacture steel using hydrogen as a fuel source rather than coal.
In the overall Metals & Minerals Industry, Industrial Info has tracked a 9% increase in projects presently under construction, which have risen in value from $443 billion in February 2022 to about $483.7 currently.
The only regions to see a decline in construction activity are Latin America and East Asia, which includes China.
When looking at high- and medium-probability projects scheduled to begin construction during 2023, mining accounts for about 33% of the value of these projects, followed by steel manufacturing at 16%. Of the mined commodities, coal production shows the highest project activity at about $31 billion globally, followed by iron ore ($12.9 billion) and copper ($11.9 billion).
Capital spending for mining projects is definitely on the rise, with eight of the top major mining firms increasing capital spending about 8.7% in 2022 versus 2021. Spending plans for the eight largest mining majors, including Vale SA (NYSE:VALE) (Rio de Janeiro, Brazil), Rio Tinto (NYSE:RIO) (London, England), Newmont Corporation (NYSE:NEM) (Denver, Colorado) and others, is planned to increase by about 17% this year to $45.1 billion. This is due to both increased project activity and the escalating costs of projects.
Examples of projects that have seen inflating costs include IAMGOLD Corporation's (NYSE:IAG) (Toronto, Ontario) Cote gold mine and mill in Ontario, which has seen costs rise from $1.8 billion to nearly $3 billion and has been delayed by several months. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the full report. Developers often point the finger of delays and cost overruns to pandemic and Ukraine war-related supply-chain issues.
Of special notice in the mining sector are projects for battery metals, such as lithium. Lithium projects have shown significant growth over the past year, increasing in count by 33% and value by 57% over the past year. Related to this is an increase in projects to recycle battery materials.
If you missed this webinar or would like to review some of its key takeaways, the full presentation will soon be found in Industrial Info's On-Demand Webinar Library.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Industrial Info is tracking approximately $46.59 billion in ESG projects related to the metals and minerals industry throughout the world. Demand drivers include metals for electric vehicles, which require more metals than combustion-engine vehicles, and wind turbine components. In addition, Industrial Info is tracking some spending for early projects aiming to manufacture steel using hydrogen as a fuel source rather than coal.
In the overall Metals & Minerals Industry, Industrial Info has tracked a 9% increase in projects presently under construction, which have risen in value from $443 billion in February 2022 to about $483.7 currently.
The only regions to see a decline in construction activity are Latin America and East Asia, which includes China.
When looking at high- and medium-probability projects scheduled to begin construction during 2023, mining accounts for about 33% of the value of these projects, followed by steel manufacturing at 16%. Of the mined commodities, coal production shows the highest project activity at about $31 billion globally, followed by iron ore ($12.9 billion) and copper ($11.9 billion).
Capital spending for mining projects is definitely on the rise, with eight of the top major mining firms increasing capital spending about 8.7% in 2022 versus 2021. Spending plans for the eight largest mining majors, including Vale SA (NYSE:VALE) (Rio de Janeiro, Brazil), Rio Tinto (NYSE:RIO) (London, England), Newmont Corporation (NYSE:NEM) (Denver, Colorado) and others, is planned to increase by about 17% this year to $45.1 billion. This is due to both increased project activity and the escalating costs of projects.
Examples of projects that have seen inflating costs include IAMGOLD Corporation's (NYSE:IAG) (Toronto, Ontario) Cote gold mine and mill in Ontario, which has seen costs rise from $1.8 billion to nearly $3 billion and has been delayed by several months. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the full report. Developers often point the finger of delays and cost overruns to pandemic and Ukraine war-related supply-chain issues.
Of special notice in the mining sector are projects for battery metals, such as lithium. Lithium projects have shown significant growth over the past year, increasing in count by 33% and value by 57% over the past year. Related to this is an increase in projects to recycle battery materials.
If you missed this webinar or would like to review some of its key takeaways, the full presentation will soon be found in Industrial Info's On-Demand Webinar Library.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
