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Falling diesel prices to have a limited impact on mine site costs

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Report summary

We expect falling diesel prices to reduce coal mine site costs by US$1/tonne in 2015 on a global weighted average basis. The impact is small but material as miners struggle to survive in a weak price environment. Our analysis is based on a diesel price of US$0.74/litre which represents a 28% decline from the average price in the first half of 2014.

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    Falling diesel prices to have a limited impact on mine site costs

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Table of contents

  • Executive Summary
  • Diesel usage in the mining sector
  • The impact of diesel on global mine site costs
  • Implications for coal markets

Tables and charts

This report includes 5 images and tables including:

Images

  • Diesel contribution in surface mining (%)
  • Diesel contribution in underground mining (%)
  • Mine site costs comparison by region (US$/tonne)
  • Mine site costs sensitivity by region
  • Mine site cost reduction ranking

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