Contract Mining Services Market Poised to Wane; Underground Mining Activities Account for 3/5th Revenues Shares: XploreMR
Contract Mining Services Market Research Report
Is Contract Mining Services Market on its Last Legs?
The global contract mining services market registered revenues worth ~US$12 Bn in 2018, as per a latest study compiled by XploreMR.
The study envisages -2.6% Y-o-Y decline in 2019 over 2018.
The study emphasizes commodity prices and increasing mechanization of the mining industry as the key determinants shaping the dynamics of the contract mining services market.
The XploreMR report opines that contract mining services are witnessing an increased demand on the back of large number of underground mining activities, which accounted for ~60% revenues in the year 2018.
As per the analysis, gold and iron ore mining firms will continue to create significant demand for contract mining services, while accounting for over 50% of the overall gains of the market.
Growing traction for contract mining services for gold mining has been underpinning gains, for instance, in January 2019, Para Resources entered into a final services agreement with Clark Construction Group.
As a part of the partnership, Clark will provide contract mining services at Para Resources’-owned Gold Road mine in Arizona, US.
As per the study, Asia Pacific excluding Japan (APEJ) will remain most lucrative for leading contract mining services’ providers, as the region is witnessing a surge in the demand for coal mining.
Market goliaths are eying the highly volatile nature of coal as a vital resource, and promising growth prospects of Asian coal mining industry to expand their business.
Intensifying emphasis of developing countries in APEJ on enhancing the steel production is highly likely to create substantial traction for coking coal, which in turn will fuel the opportunistic value of the contract mining services industry.
This falls in line with the study, which indicates that the scenario will specifically remain favorable for APEJ and may pave the way for fresh avenues for contract mining services’ providers in the years to come.
As per the study, while APEJ holds almost 1/3rd revenue share of the contract mining services market, Australia and African countries are also making significant contributions towards the growth of the industry.
Declining high grade ore heading against growing mineral output are projected to pace up the lucrativeness of the Australian contract mining market.
South Africa, on the other hand is garnering the attention of market players that are eying to capitalize on the comparatively lower mining costs and escalating number of untrodden mining sites in the region.
Equipment Based on Cutting-edge Technologies Taking Center Stage
The XploreMR’s analysis emphasizes on mergers and acquisitions, and collaborations between companies operating at different levels as the key developmental strategies of the market players to underpin gains.
Next-generation technical advances-based innovations will also remain a key strategy of contract mining services’ providers.
As per the study, growing penetration of automation in the mining industry will fuel the demand for IoT, robotics, and other cutting-edge technologies in mining operations, which in turn is likely to augment employment and extraction costs in the mining sector.
Growing focus of contract mining services’ providers on expanding application opportunities that are emerging in a plethora of verticals is strengthening the future lucrative avenues of the market.
Some of the companies profiled in the contract mining services market report include LAXYO, Macmahon, CIMIC Group, Downer Group, PYBAR Mining Services, Saumya Mining, Byrnecut Group, Exact Mining Group, BGC Contracting Pty Ltd, Ledcor IP Holdings Ltd, and SGS SA.
The XploreMR study presents a long-term perspective of the contract mining services market for the time frame 2019 to 2027.
The contract mining services market is envisaged to register -3% CAGR through 2027.
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