Initial 2020 guidance for 20 leading miners pointed to a possible 11% increase in their collective expenditure to US$54.7bn. However, after a series of mining companies have revised their guidance, the total has dropped back to just US$49.1bn, a fall of over US$6.5bn and below the US$49.3bn spent in 2019.

These include Rio Tinto reducing its capex guidance to between US$5-6 billion, down from the previous guidance of $7 billion, partly due to COVID-19 and partly due to the strength of the US dollar. Anglo American is cutting its 2020 capex expectations by US$1bn to US$4-4.5bn while Glencore is making a reduction from US$5.5bn to between US$4-4.5bn, due to project deferrals, lower production and falling input costs. Further major reductions are being made by Freeport-McMoRan, which announced a cut in capex from US$2.8bn to US$2.0bn, and ArcelorMittal, which has reduced its capex guidance from US$3.2bn to US$2.4bn.

Smaller reductions are being made by Vale (US$5bn to US$4.6bn), Antofagasta (US$1.5-US$1.3bn) and South32, which announced cuts of US$160m over the next 15 months, of which US$150m would be sustaining capex and US$10m exploration capex. This equates to a 10% reduction in FY2020 capex and 18% in FY2021 capex.

Outside the top 20, Agnico-Eagle has reduced its capital expenditure for 2020 from US$740m to US$690m and First Quantum is reducing its capex from US$850m to US$675m.

Capital expenditure for leading mining companies, 2010 to 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.

A survey conducted across over 300 mine sites by GlobalData indicates a large share (48%) of mine managers and other senior mine-site personnel expect COVID-19 to have a high impact on capital expenditure. While an additional poll undertaken by Mining-Technology.com found a similar expectation with 46% stating they expected a high impact on capital expenditure from the current COVID-19 crisis.