According to GlobalData, globally 483 projects are either currently in construction or slated to commence construction by 2020, with a CAPEX of US$253 billion. Out of this, projects currently in construction represent a total CAPEX of US$162 billion.
Ankita Awasthi, Senior Mining Analyst at GlobalData, says: “The global mining sector has been reeling under declining commodity prices, increasing production costs and declining ore grades, which have negatively impacted investment. However, a turnaround is starting to be seen with APAC leading from the front.”
APAC is forecast to account for the largest share of the total project count at 38%, followed by the Middle East and Africa (15%), Former Soviet Union (14%) and North America (10%). In terms of investment value, spend in APAC is proportionately lower at 23% of the total, followed by the Middle East and Africa (20%), Oceania (18%) and North America (15%).
Commodities with the greatest spending planned or in progress are coal (24%), gold (19%), copper (18%) and iron ore (9%), which collectively have 240 projects under construction and 80 at the feasibility stage.
The largest projects include Adani’s US$16.5 billion Carmichael coal mine in Queensland (Australia) and Novagold Resources/Barrick Gold’s US$6.6 billion Donlin gold project in Alaska (USA), both of which are under feasibility stage; and First Quantum Minerals’ US$6.3 billion Cobre Panama project, which is under construction stage.
Overall the top 10 mining companies – Adani Group, Sibanye Gold Ltd, Saudi Arabian Mining Co, Barrick Gold Corporation, Vale, First Quantum Minerals Ltd, China Shenhua Energy Co Ltd, Freeport-McMoRan Inc, Newmont Mining Corporation, Seabridge Gold Inc. and BHP Billiton – account for 30% of the total CAPEX.
