Reorientation of the mining industry

China’s surplus capacities

Summary: Due to its gigantic appetite for commodities, China has been a source of big profits for the global mining industry. But now the growth has apparently come to an abrupt end, resulting in overcapacities not only in China but also in the countries that supply China with raw materials. The mining industry has experienced an unexpected hard landing. This report presents the latest trends, based on the examples of the iron ore, coal, gold and copper industries. 

1 Introduction

At the beginning of this year, economic news sources carried the story that China intends to axe about every sixth job in the mining industry due to the substantial overcapacities in its coal and steel industries. The National Development and Reform Commission (NDRC) plans to decommission about 500 million tonnes per year (mta) of coal production capacity and approximately 120-150 mta of steel production capacity in the next 5 years. According to these plans, 1.3 million jobs will be axed in the coal industry alone, as well as 0.5 million in the steel industry. Several mines are...

Related articles:

Issue 05/2012

Appetite for commodities

What will become of China?

1 Introduction In March, the Chinese government reduced its growth forecast for the current year to 7.5 %. This is the lowest figure in the last 10 years. This year China is confronted by a...

Issue 07-08/2022 Critical Resources

China – Changes in the resources policy?

1 Introduction In 2021, the resources sector accounted for a share of 27.4?% in China’s economic output. According to the 14th Five-Year Plan (2021 – 2025) of the People’s Republic of China, more...

Issue 12/2015

Current Mining Development in Russia

Current Mining Development in Russia

1?Introduction About a year ago the RBTH media service of the Rossiyskaya Gazeta announced that Russia plans to mine rare earth metals on the moon. According to plans published by the Russian space...

Issue 04/2018 Entwicklung • Development

Global mining trends 2018

1 Introduction The prices of metals, like the prices for every commodity, are determined by supply and demand. However, current metal prices take into account not only direct production and stock...

Issue 03/2020 Current market developments

Russia’s mining industry on an upswing

1? Introduction The political and economic instability, the situation in Ukraine, current developments regarding the imposed sanctions and the uncertainty and volatility of the financial and...