Industry Summary
With salaries skyrocketing for mining professionals, many students are turning to mining. The universities offering mining courses in the UK have noticed the upsurge in interest.
The mining sector in the UK is not what it used to be. In the mid to late 1980s the coal mines in the UK were ravaged by Prime Minister Margaret Thatcher's economic policies, causing the majority to close – and this was the end for a once great industry.
Some vestiges of the UK coal industry have survived; there is Tower Colliery in south Wales near Hirwaun, which has been run by its workers since 1995 until now when it is almost worked out and is due to close in 2008.
UK COAL runs six deep mines across the UK, but this is soon to be reduced to four. Unity Power has just opened a new deep mine in South Wales Unity Mine at Cwmgwrach, in the Neath Valley; this is due to begin production in 2007, taking on 60 workers, but Unity has warned that they might have to employ Polish miners because there are few miners left in Wales.
As well as Unity mine, a neighbouring pit at Aberpergwm, run by Energy Build Holdings, is preparing to access what is believed to be the biggest reserve of anthracite in Europe (a 9ft seam that could mean 50 years' production).
Commodity prices are driving employment in mining
The environmental considerations of mining operations are also in the spotlight, which may increase future production costs.
The prices of base metal commodities are now some of the highest ever for copper, iron, nickel, aluminium and zinc and this has had a knock on effect in the mining industry.
There is great demand across the world for mining professionals. The UK has in the past supplied many of the expatriate mining professionals but in recent times has not turned out so many graduates. With salaries sky rocketing for mining professionals, many students are turning to mining. The universities offering mining courses in the UK have noticed the upsurge in interest.
Mining exploration is beginning to see an increase in investment with new operations opening in Canada, Russia and China. Rio Tinto one of the larger mining companies, increased its exploration in the first quarter of 2007 by 26% as it looks for long-life deposits to supplement production (spending over $72m).
However, the environmental considerations of mining operations are also in the spotlight and newer operations as well as existing ones may find more constraints are applied to them which will be likely to push costs of production up. As an example, the Eagle Project, a sulphide mine in Michigan, USA, has just been refused permission because of concerns over pollution and damage to a sacred burial site.
The UK mining market is buoyant
The demand for base metals such as copper, iron, aluminium, nickel and zinc will continue to be strong for some time to come as will the market for precious metals, and specialist minerals and metals. All of this is good for the mining market.
With the majority of the world's power coming from coal fired power stations the coal market is also buoyant – who knows, we may yet see a profitable UK coal industry again.
