Reported Spending of $20 Billion Indicates Strengthening Metals & Minerals Project Outlook

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Since June 2004, Industrialinfo.com has published 829 project reports for the U.S. Metals & Minerals Industry. Of that number, 782 are unique projects, representing more than $20 billion in potential spending in the industry. These projects were scheduled to begin construction between late 2004 and extending out to 2010. However, only 10% of those projects are scheduled to have construction kick-off dates later than 2006.

The remaining 47 projects have been reported more than once during the twelve-month period, due to major changes in project scope, timing, contacts, or status. For example, during this period we reported on PPG Industries Incorporated's Wichita Falls Flat Glass Coating Line Addition twice. In November, PPG awaited an authorization for expenditure (AFE) approval from its corporate office for the $40 million project. The project was reported again in March of 2005, after capital approval was obtained and building general contractor, M&F Litteken Company (Wichita Falls, Texas) was identified. It is Industrialinfo.com's goal to track a project all the way from conception to commissioning.

From this group of projects, Industrialinfo.com has compiled a list of the Top 10 U.S. Metals & Minerals Industry Sectors for capital and maintenance spending. The list shows that sectors such as steel, cement, and coal are showing increased activity.

Click on the image at right to view the Top 10 U.S. Metals & Minerals Sector Spending List.

About 29% of the projected U.S. Metals & Minerals Industry spending is taking place in the rebounding steel mill industry. This higher than normal percentage, which typically ranges in the 20-25% range, highlights a sector that is abuzz with activity, including 177 projects, representing about $5.8 billion in total investment value (TIV). Better bottom lines in 2004, along with high steel prices are leading many steel makers to invest in mill improvements, expansions, and upstream enhancements such as metallurgical coke facilities.

The cement industry is showing significant activity with 153 projects and a TIV of about $3.2 billion. Several cement producers are evaluating expansions or new grassroot plants across the country.

The coal mining industry has come to life as of late, with 20 projects totaling $1.4 billion. Demand for steam and metallurgical coal is up, and producers are scrambling to meet demand with a slate of new mining projects. One interesting development during the last year is the creation of International Coal Group, formed by Wilbur Ross with the acquisition of mining properties from bankrupt Horizon Natural Resources. True to the Wilbur Ross formula, ICG is looking for growth opportunities, with plans in the works to merge with Anker Energy and CoalQuest Development. ICG recently announced more than $900 million in capital expenditures over the next four years, including new coal mines in West Virginia.

Detailed information on all of the projects mentioned in this article can be obtained by contacting Industrialinfo.com's Member Center at 1-800-762-3361.

View Project Report - 01009732

Industrial Information Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as a leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.