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Cost deflation in the mining industry: how much and how far?


Cost deflation in the mining industry: how much and how far?

Report summary

The global mining industry is back firmly focussed on controlling and reducing costs.  Miners are ignoring factors outside of their immediate control, such as currency impacts, global oil prices and government fiscal policies, and are trying to protect margins by carrying out a range of operational cost cutting strategies.  This is particularly noticeable in industries heavily hit by sharp price falls like copper, gold, iron ore and coal.


What's included?

This report includes 1 file(s)

  • Cost deflation in the mining industry: how much and how far? PDF - 282.91 KB 6 Pages, 0 Tables, 3 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • Cost cutting in response to price falls
    • Chart 1 Global primary copper mine costs (real 2015$)
  • Proactive cost cutting strategies for miners
    • Lifting production
    • Increasing head grade
    • Lowering strip ratio
    • Reducing labour costs
    • Improving productivity
    • Fuel costs
  • A few more years yet?

In this report there are 3 tables or charts, including:

  • Executive summary
  • Cost cutting in response to price falls
    • Cost deflation in the mining industry: how much and how far?: Image 1
  • Proactive cost cutting strategies for miners
    • Chart 2 Australian mining sector wage inflation
    • Chart 3 Coal productivity (Australia all mines)
  • A few more years yet?
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