Underground Mining Market

This study intends to analyse diverse aspects of the global underground mining market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

Owing to the rapid rise in global populations, the need for highly desired natural resources continues to grow with each passing year. The ongoing expansion of various end-use industries such as consumer electronics, IT, automotive, construction, and jewellery, to name a few, is expected to result in a greater demand for and deployment of underground mining activities. Moreover, ongoing technological innovations, as well as exploratory endeavours by existing players and new market entrants, in both developed and emerging nations around the world, is a major factor that is expected to play a pivotal role in further fuelling growth prospects of underground mining market in the coming years.

Key Report Findings

• The global underground mining market was valued at over US$540 Bn in 2020, up from around US$520 Bn recorded in 2019
• Coal is the most mined mineral in underground mines (approx. 40%)
• In 2019, total global coal production was 5.2 billion MT
• The average depth of underground mines is 1,200 meters
• Projections estimate that underground mining automation will reach nearly US$3.8 Bn in the coming year

Growth Drivers

Underground Mining Complexity to Create Opportunities

Around 40% of global mining operations is accounted by underground hard-rock mining, and the remaining active mining operations are open pit or surface-based. The main differences of underground mining are that it is more expensive, lesser productive, and more targeted than its open-pit counterpart. However, this stark difference, in terms of both cost and productivity, that is expected to present significant growth opportunities to underground mining industry. Underground mining techniques are normally used when the profundity of the store or potentially the loss of metal proportion (stripping proportion) are too great to even consider a surface activity. When financial plausibility has been checked, the most suitable mining techniques are chosen by the normal/topographical conditions, and spatial/mathematical attributes of mineral deposits.

Year-on-Year Increase in Mining Revenues to Boost Investments

Increasing investments in mining and exploration activities are expected to remain a key factor responsible for revenue upsurge in the underground mining market. The growing demand for precious metals such as gold, platinum, titanium, and silver are expected to drive the need for more underground mining initiatives. Key commodity prices are the best indicators of mining activities, which in turn evinces the demand for mining equipment. A spike in demand is expected to arise from underground mining of metals such as copper, nickel, zinc, and iron ore. The global metal yield saw increments by a normal 2-4% during 2016-2018, consequently supporting the interest to further invest in underground mining activity, thereby pushing the growth prospects up for underground mining market.

Mining is one of a few industries that have showcased notable resurgence out of the COVID-19 pandemic-driven emergency, both in monetary and functional terms. 2020 was certainly a successful season for the mining industry, and in terms of revenue, this 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 2020. Gold and silver posted unassuming expansions in exploration budgets year-over-year, while the overall budget for industrial-grade metals, driven by copper, zinc, lithium, and cobalt declined. Players in the mining industry figured out how to explore market intricacies, and profit by bouncing back costs, and facilitating limitations as 2020 progressed.

Stoping to Constitute a Majority Segment Share

The primary activity needed in underground mining is rock breakage. The most well-known equipment for material handling includes, loading and hauling uncovered mineral include slushers, gathering-arm loaders, front-end loaders, overhead loaders, Load-Haul-Dump (LHDs) units, and rubber-tired transport vehicles and trucks, just as transportation by conveyor, rail, and gravity stream. The key end-use application industries in worldwide underground mining market include coal mining and metal mining. Out of segments - long wall, room and pillar, sublevel caving, cut & fill, block caving, and stoping, the most commonly sought-after 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, while longwall mining is used in even deposits (primarily coal). Others have applications in slanted or upward, enormous deposits, solely metallic or non-metallic. Room-and-pillar mining is reasonable for level or almost flat plain deposits. 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 a significant deposit with generally low financial worth, i.e., deposits where some metal might be left without any critical monetary effect.

Growth Challenges

High Capital Costs, Safety and Environmental Concerns

Underground mining involves a significant amount of capital investment, be it for equipment, technology, and infrastructure. The cost of acquiring and maintaining specialized equipment and machinery is high, which in turn can limit profitability. Moreover, safety is a major concern due to challenging work conditions and a heightened risk of accidents, all of which could hinder this industry. Additionally, there are various regulations that have been put in place by respective authorities around the world, and compliance with which may be time-consuming, costly, and challenging. These factors could potentially hinder the further progression of the global underground mining market in the years ahead.

Growth Opportunities Across Regions

Prosperity in LATAM, Africa, and Australia

Underground mining makes up a mere 12% of Run-of-Mine (ROM) production. Nations in Latin America (LATAM) account for the largest ROM, 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 at the 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 underground mining market here will likewise be driven by Africa, and LATAM regions in the future. In the light of the fact that the interest of these locales in underground mining relies upon increments. Expansion in investigation exercises in China, India, Brazil, Australia, and Africa are relied upon to be the critical supporters of underground mining interests globally. 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 underground mines are situated in Western Australia, Queensland, and NSW, with a couple of spreads all through South Australia, the Northern Territory, and Tasmania.

Key Market Players - Underground Mining Landscape

Some key companies in the global 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, to name a few.

Recent Notable Developments

• In March 2023, Sandvik to launch Toro™ LH518iB with AutoMine, an automation-ready battery-electric underground loader that is comparable with the AutoMine automation system
  
  
• In March 2023, Rajant Corporation, the developer of Kinetic Mesh wireless networks, collaborated with Swedish OEM Sandvik, on a trial of wireless communication system that can be used with tele-remote and autonomous vehicles destined for the De Beers Venetia diamond mine
  
  
• In February 2023, Sandvik completed the acquisition of Polymathian Industrial Mathematics, an Australian mine optimization software provider  

Regional Classification of the Global Underground Mining Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

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, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• 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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