Insight
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$0.74/litre which represents a 28% decline from the average price in the first half of 2014.
Table of contents
- Executive Summary
- Diesel usage in the mining sector
- The impact of diesel on global mine site costs
- Implications for coal markets
Tables and charts
This report includes 5 images and tables including:
- Diesel contribution in surface mining (%)
- Diesel contribution in underground mining (%)
- Mine site costs comparison by region (US$/tonne)
- Mine site costs sensitivity by region
- Mine site cost reduction ranking
What's included
This report contains: