After commodity price declines, increasing production costs and declining ore grades negatively impacted investment in the mining sector, a turnaround is starting to be seen with global establishment capex of $253bn across 483 projects either currently in construction or predicted to commence construction by 2020.

According to GlobalData’s Mining Intelligence Center, projects currently in construction represent a total capex of $162bn, or 70% of this total, with the remainder to be made up by those currently in feasibility. Projects in Asia-Pacific 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 Asia Pacific 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 $16.5bn Carmichael Coal Mine in Queensland, Australia; Novagold Resources/Barrick Gold’s $6.6bn Donlin Gold Project in Alaska, and First Quantum Minerals’ $6.3bn Cobre Panama Project.

Overall the top ten mining companies: Adani, Saudi Arabian Mining, Sibanye Gold, Vale, Barrick Gold Corporation, First Quantum Minerals, China Shenhua Energy, Freeport-McMoRan, Newmont Mining Corporation, Seabridge Gold, and BHP Billiton account for 30% of the total capex.

Global initial establishment capex trends (2018-2020)

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
Source: GlobalData                                                                                                                                                                   ©GlobalData


Where an initial establishment capex figure has not been released for a particular project, GlobalData’s forecasts for capex based on key factors such as production capacity, mine type, strip ratio and processing technology.