Mining Industry Overview Free Essays

Mining? Industry? Overview? Boyi? Xie? March? 5,? 2012? Michael? Porter’s? Five? Forces? Outline? †¢? †¢? †¢? †¢? †¢? †¢? †¢? Products? Suppliers/Customers? Industry? Compe? tors? Cost? Revenue? ? pro? t? Overall? trends? Other? factors? Products? †¢? †¢? †¢? †¢? †¢? †¢? †¢? †¢? †¢? †¢? †¢? Aluminum? Copper? Lead? Zinc? Gold? Silver? Uranium? oxide? Diamonds? Stainless? Steel? Materials? Iron? Ore? Coal? Aluminum? Zinc? Copper? Gold? Iron? ore? Diamond? Marketing? ? Customers? †¢? Marke? ng? centers? of? mining? companies? †¢? Sell? products? at? the? most? advantageous? price? to? make? the? most? of? their? intrinsic? value? ? Act? as? a? source? of? specialist? exper? se? †¢? Iden? fy? value? opportuni? es? †¢? Customer? service:? †¢? Technical? assistance? †¢? Transporta? on,? e. g.? BHP? Shipping,? Rio? Tinto? Marine? †¢? Customers? †¢? Jewelry ? makers. We will write a custom essay sample on Mining Industry Overview or any similar topic only for you Order Now ? E. g.? gold,? silver? and? diamonds? †¢? Manufacturing/construc? on? companies.? †¢? E. g? Hyundai? Steel? †¢? Government? †¢? Other? retailers? BHP? Billiton? †¢? BHP? Billiton? is? a? global? mining,? oil? and? gas? company? headquartered? in? Melbourne,? Australia? and? with? a? major? management? o? ce? in? London,? UK.? It? is? the? world’s? largest? mining? company? measured? by? evenue.? †¢? BHP? Billiton? was? created? in? 2001? through? the? merger? of? the? Australian? Broken? Hill? Proprietary? Company? Limited? (BHP)? and? the? Anglo? Dutch? Billiton? plc.? (Billiton? origins? stretch? back? to? 1860)? †¢? It? is? now? a? dual? listed? company? in? Australian? Securi? es? Exchange? and? London? Stock? Exchange.? †¢? It? operates? a? wide? variety? of? mining? and? processing? opera? ons? in? 25? countries,? employing? approximately? 41,000? people.? †¢? It? has? opera? ons? on:? aluminum,? diamonds,? iron? ore,? petrol eum,? stainless? steel,? uranium,? etc.? †¢? Mines? in:? Algeria,? Australia,? Brazil,? Canada,? South? Africa,? USA? Rio? Tinto? †¢? Rio? Tinto,? now? headquartered? in? London,? UK? (and? Brisbane,? Australia),? was? founded? in? 1873,? when? a? mul? na? onal? consor? um? of? investors? purchased? a? mine? complex? on? the? Rio? Tinto? river,? in? Huelva,? Spain.? †¢? It? is? now? a? dual? listed? company? in? Australian? Securi? es? Exchange? and? London? Stock? Exchange.? †¢? It? is? one? the? world? leaders? in? the? produc? on? of? aluminum,? iron? ore,? copper,? uranium,? coal? and? diamonds.? †¢? It? also? has? signi? cant? opera? ons? in? re? ning,? par? cularly? for? e? ning? bauxite? and? iron? ore.? †¢? It? has? opera? ons? on? six? con? nents? but? is? mainly? concentrated? in? Australia? and? Canada.? Vale? †¢? Vale? is? a? Brazilian? mul? na? onal? diversi? ed? metals? and? mining? corpora? on? and? one? of? the? largest? logis? cs? operators? in? Brazil.? †¢? It’s? the? largest? producers? of ? iron? ore,? pellets,? and? second? largest? nickel;? other? products? include? manganese,? ferroalloys,? copper,? bauxite,? aluminum.? †¢? It’s? listed? on? stock? exchanges? of? Sao? Paulo,? New? York,? Paris,? Hong? Kong? and? Madrid.? †¢? It’s? also? the? corpora? on? with? the? ost? â€Å"contempt? for? the? environment? and? human? rights†? and? was? named? world’s? most? evil? company.? @8+8+%*1(9’+8$)%#’. $%*1+08+2$,%01%1209$/31/(%0#$% 1. $/’44%(‘/;$06%’)%*1+)2($/%)$*01/)%,$9$+,’+0%1+% ,$(‘+,%3/1(%,$. $419$,%$*1+1(8$)%)0/24$,%01% /$*1. $/:%A#84$%0#$%8+,2)0/5%? ‘)%#80%#’/,%75%0#$%417’4% *†. â€Å"3!. ,)3’! %! %8)7! â€Å"! â€Å"2)3174. â€Å"! +%)0. 9+),+#)0+)’+$'†) ‘+,%1+$%7$51+,:% Global? Indices? Global indices (February 1989=1) 9 †¢? Mining? companies? have? con? nued? to? outperform? the? overall? market.? †¢? While? the ? industry? was? hit? hard? by? the? global nancial? crisis,? mining? ompanies? have? led? the? return? and? gone? beyond. 8 7 6 5 4 3 2 1 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Dow Jones FTSE HSBC Global Mining Index Source: Bloomberg. BCDC%)’? %/$’4%0$+)81+%8+%0#$%(‘/;$0%’)%/1? 0#% /$712+,$,6%133)$0%75%’%+2(7$/%13%8+*8,$+0)%0#’0%;$90% Global? Indices? â€Å"#$%'(#)*+)*,-. %)/0 -. $/%0#$%*12/)$%13%0#$%4†²)0%5$’/6%417’4%$*1+1(8*%’+,% 914808*’4%0/$+,)%#’. $%*#’+$,%0#$%8+,2)0/5:%†#$%(8+8+% !†#$%'()*†#%)! %+,-)! â€Å"). )†+/)+’. ). â€Å"#)0+’+)! %)†1)$'†! â€Å"2) 7’*;:%$*081+)%? #84$%)29945%/$(‘8+)%*1+)0/’8+$,6% ?80#%*#’44$+$)%)2*#%’)%,$*48+8+%/’,$%’+,%(1/$% $(10$%41*’081+):%†#$%*1)0%*2/. $%#’)%)#830$,%296% *1+08+28+%01%920%9/$))2/$%1+%0#$%8+,2)0/5%01%(à ¢â‚¬Ëœ8+0’8+% *†. â€Å"3!. ,)#! %3! 4,! â€Å"+5)6+/)4,. (+’%). ‘+)+7+’2! â€Å"2). â€Å"#)0+) 8+,2)0/5%8)%/$*$8. 8+%(1/$%’00$+081+%3/1(%80)%(‘+5%’+,% .’/8$,%)0†²;$#14,$/):%! â€Å"#$%’#$†($)†*%#+%8+%0#$%(8+8+% 8+,2)0/5: †¢? Emerging? countries? con? nued? to? storm? ahead,? with? demand? for? resources? driven? by? strong? GDP? growth,? including? close? to? 10%? growth? in? China. †¢? Mining? market? capitaliza? on? con? nued? to? rebound? in? 2010,? with? many? players? recovering? the? remaining? market? capitaliza? on? lost? uring? the? global nancial? crisis? and? surpassing? the? level? seen? at? the? end? of? 2007.? 1%#/+)*,-(%,2#3 @8+8+%*1(9’+8$)%#’. $%*1+08+2$,%01%1209$/31/(%0#$% 1. $/’44%(‘/;$06%’)%*1+)2($/%)$*01/)%,$9$+,’+0%1+% ,$(‘+,%3/1(%,$. $419$,%$*1+1(8$)%)0/24$,%01% /$*1. $/:%A#84$%0#$%8+,2)0/5%? ‘)%#80%#’/ ,%75%0#$%417’4% *†. â€Å"3!. ,)3’! %! %8)7! â€Å"! â€Å"2)3174. â€Å"! +%)0. 9+),+#)0+)’+$'†) ‘+,%1+$%7$51+,:% †¢? The? total? year? end? market? capitaliza? on? of? the? top? 40? companies? increased? by? 26%,? with? larger? gains? generally? achieved? by? the? smaller? companies. Global indices (February 1989=1) 8 7 6 5 4 3 2 1 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Dow Jones FTSE HSBC Global Mining Index Source: Bloomberg. BCDC%)’? %/$’4%0$+)81+%8+%0#$%(‘/;$0%’)%/1? 0#% /$712+,$,6%133)$0%75%’%+2(7$/%13%8+*8,$+0)%0#’0%;$90% *’2081+%’+,%/8);%1+%0#$%’$+,’:%? @? ‘. /$! 3# 3/+030. 3.! 3#$! A $’$/%0* 3/+030. A. /,+B! $ Top 40 TS 100 250% 50 Coal India PotashCorp Barrick Gold FreeportMcMoRan Anglo American Xstrata China Shenhua 0 Rio Tinto 200% Vale †¢? The? big? get? bigger.? They? are? also? diversifying? in? other? direc? on s.? For? instance,? some? have? begun? exploring? the? bene? ts? f? ver? cal? integra? on? in? an? anempt? to? control? the? en? re? commodity? value? chain? –? from? coal? mining? to? steel? produc? on? to? power? genera? on.? 150 BHP Billiton †¢? New? entrant:? Coal? India.? Following? its? IPO? in? October? 2010,? it’s? the? largest? new? entrant.? 5$/! â€Å". 3 (#. A(! ‘ 3#$! ($)3 150% 100% 2009 2010 Source: Capital IQ. Note:? EBITDA:? earnings? before? interests,? taxes,? deprecia? on,? and? amor? za? on? 9%. #1:. %7%2;-201$? @?! ! (3*+!. 23! 5$/! -. /! 3#$! ‘0*0*%! 0*+2(3/57! R)/. ((! 3#$! â€Å". 1! G?! 3#$/$! A(! ! 50% 0% Source: B â€Å"#$%'($)%*+,-)%. $(%-‘. -. 0+%1232%4$%)’4%5#$%567%5#/$$%(0+$/)%89:;%90)G#’H 9##? â€Å"@)*+†A. +6;),†*5(â€Å"*88/)8*0)†A*+6),† were? announced? during? the? ;B†*5(â€Å"=CB†1481)/†01*5†³01)†9/,0†³1*+#? â€Å"D5†³*5† â€Å"(2/. $%2(2@. /%†0#†1’/2%). %**3/*%;/0%†1/2? /3/ ?rst? half? of? 2011.? .7B(*C/3;C%)7858%). 577B%). (* C/3 ;;’? â€Å"E. â€Å"F60†³014,†450. â€Å"F)/,F)704A)$†7. 5,4()/†01*0† †¢? Deals? volumes? and? aggregate? â€Å"(2/. 0#†1’/2’%/7855;C/$12(/2;4/%3#E+,-();C/ â€Å". JK? † values? were? 10%? and? 25%? 1 80 ,000 3,000 Announced Date Target Target Description Target Headquarters Transaction Value (millions) Target Resource Type !$%%#'(#%$#)*’+,*#-. /. /0#12,*3 2011? 1H? Top? 10? Global? Mining? Deals Acquirer 01/28/2011 Massey Energy Corporation Massey Energy Company, through its wholly owned subsidiary, A. T. Massey Coal Company, Inc. , produces, processes, and sells bituminous coal primarily in the United States. United States US$8,500 Coal Alpha Natural Resources, Incorporated 04/24/2011 Equinox Minerals Limited Equinox Minerals Limited engages in the mining and exploration of mineral properties. Australia C$7,300 Copper Barrick Gold Corporation Announced 01/11/2011 Date Target Consolidated Thompson Iron Mines Limited Target Description Consolidated Thompson Iron Mines Limited, a mining company, engages in the exploration and development of mineral properties in Canada. Target Canada Headquarters Transaction C$4,900 Value (millions) Target Steel Resource Type Acquirer Cliffs Natural Resources Incorporated 05/02/2011 01/28/2011 US$3,400 US$8,500 Coal Coal Kazakhstan US$3,200 Zinc 04/24/2011 Equinox Minerals Limited Australia C$7,300 Copper 06/10/2011 01/11/2011 PT Bumi Resources Consolidated Thompson Minerals Tbk Iron Mines Limited International Coal Group, Inc. produces coal in northern and central Massey Energy Company, through States. owned subsidiary, A. T. Massey Appalachian regions of the United its wholly Coal Company, Inc. , produces, processes, and sells bituminous coal primarily iKazzinc JSC States. produces zinc with copper, precious metals, and lead n the United primarily credits in Kazakhstan. Equinox Minerals Limited engages in the mining and exploration of mineral properties. PT Bumi Resources Minerals Tbk, through its subsidiaries, engages in the Consolidated Thompson Iron Mines Limited, a mining Indonesia and in west exploration and development of mineral properties in company, engages in the exploration and development of mineral properties in Canada. Africa. United States United States 04/14/2011 International Coal Group, Massey Energy Incorporated Corporation KazzInc Indonesia Canada US$2,100 C$4,900 Diversi? ed Steel and Metals Mining 02/03/2011 05/02/2011 Fronteer Gold International Coal Group, Incorporated Incorporated Fronteer Gold Inc. engages in the acquisition, exploration, and development of International Coalproperties in producesthe United States, and Turkey. mineral resource Group, Inc. Canada, coal in northern and central Appalachian regions of the United States. Canada United States C$2,300 US$3,400 Gold Coal Arch Coal Alpha Natural Incorporated Resources, IGlencore ncorporated International p Barrick Gold Corporation Bumi plc Cliffs Natural Resources Incorporated Newmont Min Arch Coal Corporation Incorporated 04/14/2011 03/02/2011 KazzInc Companhia Brasileira de Metalurgia e Mineracao Kazzinc JSCBrasileira de Metalurgia ewith copper,engages in the extraction, Companhia primarily produces zinc Mineracao precious metals, and lead credits in Kazakhstan. processing, manufacture, and marketing of niobium-based products. Kazakhstan Brazil US$3,200 US$1,950 Zinc Diversi? ed Metals and Mining 06/10/2011 PT Bumi Resources Minerals Tbk PT Bumi Resources Minerals Tbk, through its subsidiaries, engages in the exploration and development of mineral properties in Indonesia and in west Africa. Indonesia US$2,100 Diversi? ed Metals and Mining 02/03/2011 Fronteer Gold Incorporated Fronteer Gold Inc. engages in the acquisition, exploration, and development of mineral resource properties in Canada, the United States, and Turkey. Canada C$2,300 Gold 03/02/2011 Companhia Brasileira de Metalurgia e Mineracao Companhia Brasileira de Metalurgia e Mineracao engages in the extraction, processing, manufacture, and marketing of niobium-based products. Brazil US$1,950 Diversi? ed Metals and Mining 06/22/2011 Vale Fertilizantes SA Vale Fertilizantes S. A. produces and supplies phosphate- and nitrogen- based inputs for the production of fertilisers and inputs for chemical companies in Brazil. Brazil US$1,390 Fertilisers and Agricultural Chemicals POSCO, Sojit Corporation, N Steel Corpora Holdings Inco Vale S. A. The Japan Oil and Metals Na Corporation Pension Servi 06/15/2011 Drummond Company, Inc. Colombian Mining Operations and Related Infrastructure Drummond Companys, Colombian Mining Operations and Related Infrastructure comprises coal exploration properties with probable reserves of about 2 billion net tons. Colombia US$1,524 Coal Itochu Corpor 06/22/2011 Vale Fertilizantes SA Vale Fertilizantes S. A. produces and supplies phosphate- and nitrogen- based inputs for the production of fertilis ers and inputs for chemical companies in Brazil. Brazil US$1,390 Fertilisers and Agricultural Vale S. A. Glencore Sojit POSCO, ICorporation, p nternational Steel Corpora Holdings Bumi plc Inco The Japan Oi and Metals N Corporation Pension Serv Newmont Min Corporation 2011? 1H? Top? 10? Global? Mining? Deals et ource Acquirer Acquirer Description Acquirer Headquarters Transaction Status (as at August 8, 2011) l Alpha Natural Resources, Incorporated Alpha Natural Resources, together with its subsidiaries, engages in the production, processing, and sale of coal in the United States. United States Closed per Barrick Gold Corporation Barrick Gold Corporation engages in the production and sale of gold, as well as related activities, such as exploration and mine development. Canada Closed l Cliffs Natural Resources Incorporated Cliffs Natural Resources, a mining and natural resources company, produces iron ore pellets, lump and ? nes iron ore, and metallurgical coal products. United States Closed l Arch Coal Incorporated Arch Coal engages in the production and sale of steam and metallurgical coal from surface and underground mines located throughout the United States. United States Closed Glencore International plc Glencore International plc, together with its subsidiaries, engages in producing, sourcing, processing, re? ning, transporting, storing, ? ancing, and supplying commodities to industries worldwide. Switzerland Announced Bumi plc Bumi plc, through its subsidiaries, engages in the exploration, mining, and processing of coal and other minerals in Indonesia and West Africa. United Kingdom Announced Newmont Mining Corporation Newmont Mining, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper p roperties. United States Closed POSCO, Sojitz Corporation, Nippon Steel Corporation, JFE Holdings Incorporated, The Japan Oil, Gas and Metals National Corporation National Pension Service JFE Holdings, Inc. , through its subsidiaries, engages in steel and engineering operations in Japan. JFE Holdings Inc. : Japan Announced National Pension Service is a pension fund manager. National Pension Service: South Korea rsi? ed als and ng rsi? ed als and ng Nippon Steel Corporation, through its subsidiaries, engages in the manufacture and sale of steel and related products in Japan and internationally. Nippon Steel Corp. : Japan POSCO: South Korea Sojitz Corporation operates as a general trading company worldwide. Sojitz Corporation: Japan Japan oil, Gas and Metals National Corporation provides ? ancial assistance, technology development, technical support, stockpiling, gathering/providing information, mine pollution control, and overseas ? eld survey services in Japan. ilisers POSCO engages in the manufacture and sale of steel products in South Korea and internationally. The Japan Oil, Gas and Metals National Corporation: Japan Vale S. A. Vale S. A. engages in the exploration , production, and sale of basic metals in Brazil. Brazil Announced Itochu Corporation ITOCHU Corporation operates as a general trading company primarily in Japan and internationally. Japan Announced How to cite Mining Industry Overview, Essay examples