Fairfield Market Research
Underground Mining Market

Underground Mining Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Metals & Mining | Author Name: Hrishikesh

Complexity of Underground Mining Reflects an Opportunity

Around 40% of global mining operations is accounted by underground hard-rock mining, and the rest of active mining operations are open pit, or surface-based. The difference is underground mining is considered to be more expensive, lesser productive, and more targeted than its open-pit counterpart. However, this stark difference also points to a huge existing opportunity in terms of both cost, and productivity. Underground mining techniques are normally utilized when the profundity of the store or potentially the loss to metal proportion (stripping proportion) are too extraordinary to even think about beginning a surface activity. When the financial plausibility has been checked, the most suitable mining techniques should be chosen by the normal/topographical conditions, and spatial/mathematical attributes of mineral deposits.

Year-on-year Increase in Mining Revenue to Boost Investments into Underground Mining Operations

Increasing investments in mining, and exploration will remain the key factor responsible for rise in demand for underground mining services across the globe. Rising demand for precious metals such as gold, platinum, titanium, and silver is expected to drive the demand for underground mining in the near future. Key commodity prices are the best indicators of mining activities, which in turn evinces the demand for mining equipment. Rise in demand is expected to arise from underground mining of metals such as copper, nickel, zinc, and iron ore. The worldwide metal yield witnessed increment by a normal of 2–4% during 2016–2018, consequently supporting the interest for underground mining.

Mining is one of a handful of the businesses that have been showcasing notable resurgence out of the COVID-19 pandemic-driven emergency, both monetary, and functional. 2020 was certainly a successful season for mining industry, and in terms of revenue, industry stood at US$ 544.4 Bn in 2020 compared to US$521.4 Bn recorded in 2019 - indicating a US$23 Bn increase in revenue in a year of pandemic. Gold and silver posted unassuming expansions in exploration budgets year over year, while the overall budget for the industrial-grade metals, driven by copper, zinc, lithium, and cobalt declined. The mining business managed to figure out how to explore through market intricacies, and profit by bouncing back costs, and facilitating limitations as 2020 advanced.

Stoping Constitutes a Major Share as a Preferred Underground Mining Method

The primary activity needed in underground mining are rock breakage. The most well-known equipment for material handling, for example, loading and hauling uncovered mineral include slushers, gathering-arm loaders, front-end loaders, overhead loaders, Load-Haul-Dump units (LHDs), and rubber-tired transport vehicles and trucks, just as transportation by conveyor, rail, and gravity stream. The key end-use application businesses incorporate coal mining and metal mining. Out of long wall, room and pillar, sublevel caving, cut & fill, block caving, and stoping, the most commonly sought-after one is stoping. The method also delivers the highest overall production share, at almost 45-50%. On the other hand, block caving is one of the least-used methods, whereas longwall mining is utilized in even, even stores (primarily coal). Others have applications in slanted or upward, enormous stores, solely metallic or non-metallic. Room-and-pillar mining is reasonable for level or almost flat plain stores. On the off chance that the metal bodies are respectably disposed (>30°) it is unreasonable to use tired portable hardware, bringing about diminished usefulness. Room-and-pillar mining is respectably positive as far as usefulness, and cost. In like manner, it is fitting for an enormous store with generally low financial worth, i.e., stores where some metal might be left without any critical monetary effect.

Underground Mining Prospers in LATAM, Africa, and Australia

Underground mining makes up for a mere 12% of run-of-mine (ROM) production. Nations in the Latin American (LATAM) continent provide the largest run of mine by volume among commodities considered, followed by Oceania. El Teniente is the largest underground copper mine located in Peru. Furthermore, Africa, and North America rank top in terms of operating expenditure—with Asia, and the Commonwealth of Independent States (CIS) posting the lowest cost per metric ton. At the same time, regional cost variations are also driven by the relative importance of specific mining methods in each region. For instance, Latin America, and Asia are on the lower end of the operation-expenditure scale, in part due to the large share of production accounted for by block caving in these regions.

The market will likewise be driven by Africa, and the LATAM areas in the near future. In light of the fact that the interest of these locales in underground mining is relied upon increment. Expansion in investigation exercises in China, India, Brazil, Australia, and Africa are relied upon to be the critical supporters of the underground mining interest at the worldwide level. As of now, one of Australia's biggest underground mines is Newcrest's Gold, Silver, and Copper Cadia Valley Operations, close to Orange in New South Wales (NSW). Most of underground mines are situated in Western Australia, Queensland, and NSW, with a couple of spreads all through South Australia, Northern Territory, and Tasmania.

Global Underground Mining Market: Competitive Landscape

The underground mining supplies will also see a change in the near future as a result of considerable capacity additions, and other production-related changes. Some of the key players operating in the underground mining market include Caterpillar, Sany Group, Sandvik AB, Atlas Copco, Vale S.A., Thyssen Mining, Amur Minerals Corporation, Rio Tinto, OZ Minerals, Norilsk Nickel Group, Implats Platinum Limited, Glencore plc, Coal India Ltd, Barminco, China Shenhua Energy Company Limited, BHP, GBF Underground Mining Company, Anglo American Plc, The Redpath Group, Alcoa Corporation, and CIMIC Group Limited.

Key Elements Included In The Study: Global Underground Mining Market

  • Underground Mining Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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