Challenges and Opportunities in the Mining Industry
Challenges and Opportunities in the Mining Industry
Challenges and Opportunities in the Mining Industry
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Challenges</strong> <strong>and</strong><br />
<strong>Opportunities</strong> <strong>in</strong> <strong>the</strong> M<strong>in</strong><strong>in</strong>g<br />
<strong>Industry</strong><br />
SSF Stockholm<br />
Mal<strong>in</strong> R<strong>in</strong>gdahl Ste<strong>in</strong><br />
April 13 th 2012
Agenda<br />
• What is <strong>the</strong> market <strong>and</strong> what is it worth?<br />
• Driv<strong>in</strong>g force(s)<br />
• <strong>Challenges</strong>/<strong>Opportunities</strong><br />
• Ch<strong>in</strong>a <strong>and</strong> REE
Global M<strong>in</strong><strong>in</strong>g<br />
~ 1 260 billion USD<br />
Source: Raw Materials Group, Stockholm 2011
M<strong>in</strong><strong>in</strong>g Metals<br />
Source: Raw Materials Group, Stockholm 2011
Value at m<strong>in</strong>e stage<br />
~ 630 billion USD<br />
Source: Raw Materials Group, Stockholm 2011
Coal Production<br />
Mt<br />
8000<br />
7000<br />
6000<br />
5000<br />
4000<br />
3000<br />
2000<br />
1000<br />
0<br />
O<strong>the</strong>r<br />
South Africa<br />
Russia<br />
Indonesia<br />
India<br />
Ch<strong>in</strong>a<br />
Australia<br />
Source: Raw Materials Data, Stockholm 2011
Guld produktion<br />
90000<br />
Koz<br />
80000<br />
70000<br />
60000<br />
50000<br />
40000<br />
30000<br />
20000<br />
10000<br />
Source: Raw Materials Data, Stockholm 2011<br />
0<br />
1993<br />
1994<br />
1995<br />
1996<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
Uzbekistan<br />
Ghana<br />
Canada<br />
Indonesia<br />
Peru<br />
Russia<br />
South Africa<br />
USA<br />
Australia<br />
Ch<strong>in</strong>a<br />
O<strong>the</strong>r
RMG activities<br />
• Raw Materials Data: Metals/Coal/Iron Ore<br />
• Strategy development:<br />
M<strong>in</strong><strong>in</strong>g companies<br />
Equipment & service providers<br />
• M<strong>in</strong>eral policy, <strong>in</strong>vestment promotion:<br />
Governments<br />
International organisations
Agenda<br />
• What is <strong>the</strong> market <strong>and</strong> what is it worth?<br />
• Driv<strong>in</strong>g force(s)<br />
• <strong>Challenges</strong>/<strong>Opportunities</strong><br />
• Ch<strong>in</strong>a <strong>and</strong> REE
Copper Use <strong>and</strong> Urbanisation<br />
100%<br />
90%<br />
80%<br />
Ch<strong>in</strong>a<br />
India<br />
USA<br />
70%<br />
60%<br />
Switzerl<strong>and</strong><br />
Germany<br />
Sth Korea<br />
Urbanization<br />
50%<br />
40%<br />
30%<br />
20%<br />
Zambia<br />
Indonesia<br />
Philipp<strong>in</strong>es<br />
Pakistan<br />
Thail<strong>and</strong><br />
Japan<br />
Brazil<br />
Chile<br />
Russia<br />
UK<br />
10%<br />
Malaysia<br />
0%<br />
1 10 100 1000 10000<br />
Source: ICSG, Raw Materials Group 2011<br />
Population (millio)<br />
World
Ch<strong>in</strong>ese iron ore imports<br />
644 Mt<br />
Source: Raw Materials Data, Stockholm 2011
Global iron ore imports<br />
Source: Raw Materials Data, Stockholm 2011
Agenda<br />
• What is <strong>the</strong> market <strong>and</strong> what is it worth?<br />
• Driv<strong>in</strong>g force(s)<br />
• <strong>Challenges</strong>/<strong>Opportunities</strong><br />
• Ch<strong>in</strong>a <strong>and</strong> REE
State M<strong>in</strong><strong>in</strong>g Control<br />
% of total production<br />
Source: Raw Materials Data, 2012
Cash cost, Gold M<strong>in</strong>es 2002-2010<br />
Price 2010<br />
1227 USD/oz<br />
Price 2002<br />
310 USD/oz<br />
Average cost 2010<br />
535 USD/oz<br />
Source: Raw Materials Data, Stockholm 2011<br />
+ 183 %
7.0<br />
6.0<br />
5.0<br />
4.0<br />
3.0<br />
2.0<br />
1.0<br />
0.0<br />
Grade over Time<br />
Au PGM Ag<br />
50<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
Source: Raw Materials Group, Stockholm 2011
Grade over Time<br />
1.40<br />
1.20<br />
1.00<br />
0.80<br />
0.60<br />
0.40<br />
0.20<br />
0.00<br />
Cu Ni Pb Zn<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
7.00<br />
6.00<br />
5.00<br />
4.00<br />
3.00<br />
2.00<br />
1.00<br />
0.00<br />
Source: Raw Materials Group, Stockholm 2011
Ore production 2010-20<br />
300<br />
Mt<br />
250<br />
200<br />
150<br />
100<br />
Sweden<br />
Norway<br />
Greenl<strong>and</strong><br />
F<strong>in</strong>l<strong>and</strong><br />
50<br />
0<br />
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020<br />
061030 Anton Löf
kt<br />
16 000<br />
14 000<br />
12 000<br />
10 000<br />
8 000<br />
6 000<br />
4 000<br />
2 000<br />
Production by M<strong>in</strong>e Size<br />
Less than 50 kt pa 50 to 100 kt pa<br />
100 to 250 kt pa Greater than 250 kt<br />
0<br />
1975 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009<br />
Source: Raw Materials Group, 2012
Number of m<strong>in</strong>es<br />
350<br />
300<br />
Production by M<strong>in</strong>e Size<br />
Less than 50 kt pa<br />
50 to 100 kt pa<br />
100 to 250 kt pa Greater than 250 kt<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
1975 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009<br />
Source: Raw Materials Group, 2012
Agenda<br />
• What is <strong>the</strong> market <strong>and</strong> what is it worth?<br />
• Driv<strong>in</strong>g force(s)<br />
• <strong>Challenges</strong>/<strong>Opportunities</strong><br />
• Ch<strong>in</strong>a <strong>and</strong> REE
REE M<strong>in</strong>es & Projects
REE Reserves<br />
133 Mt<br />
Australia<br />
Brazil<br />
Canada<br />
Ch<strong>in</strong>a<br />
India<br />
Malaysia<br />
USA
REE Resources<br />
2 090 Mt<br />
Australia<br />
Brazil<br />
Canada<br />
Ch<strong>in</strong>a<br />
F<strong>in</strong>l<strong>and</strong><br />
Greenl<strong>and</strong><br />
India<br />
Kyrgyzstan<br />
Malawi<br />
Malaysia<br />
Russia
REE Produc<strong>in</strong>g Companies<br />
5% 4% 3%<br />
1%<br />
0,03% Baotou Iron & Steel<br />
Group Co Ltd<br />
Lovozersk M<strong>in</strong><strong>in</strong>g Co<br />
State of India<br />
87%<br />
Lynas Corporation Ltd<br />
State of Brazil
t<br />
250 000<br />
REE Produc<strong>in</strong>g Companies<br />
200 000<br />
Mounta<strong>in</strong> Pass<br />
production<br />
150 000<br />
Mount Weld<br />
production<br />
100 000<br />
Ch<strong>in</strong>ese production<br />
50 000<br />
Dem<strong>and</strong> tonnes,<br />
conservative figure<br />
0<br />
Dem<strong>and</strong>, ambitious<br />
figure<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
2015
Ch<strong>in</strong>ese Foreign M<strong>in</strong>es<br />
Source: Raw Materials Data, Stockholm 2011
Ch<strong>in</strong>ese Foreign Projects<br />
Source: Raw Materials Data, Stockholm 2011
Ch<strong>in</strong>ese M<strong>in</strong>es/Projects outside<br />
Ch<strong>in</strong>a 1990-2011<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
1990 1995 2000 2005 2011<br />
Year<br />
Source: Raw Materials Data, Stockholm 2011
What to take with you<br />
• The size of <strong>the</strong> m<strong>in</strong><strong>in</strong>g market<br />
• Increas<strong>in</strong>g costs<br />
• Increased ore production<br />
• Decreas<strong>in</strong>g grades<br />
• Size of future m<strong>in</strong>es<br />
• Politics
Change language