Base Metal Mining Market – Gains from Building and Construction Industry’s Progression Significant
The primary factor driving the base metal mining market growth rate is the increase in demand for base metals by the building and construction industry as a result of growing urbanization, infrastructure development, and an increase in the number of construction activities. Other reasons driving development in the market value include increasing demand for electric vehicles and other commercial vehicles, as well as the growth and expansion of the automotive sector, particularly in developing economies. The rate of growth of the market will be immediately and favorably impacted by rising industrialization and rising global demand for copper. Additionally, other significant indirect factors driving ase metal mining market expansion include the government’s increasing emphasis on mining-friendly laws and the rise in disposable income. The development of market would be significantly hampered by a number of issues related to mining and exploration activities. Moreover, variations or volatility in the cost of raw materials will slow down the rate of market expansion . Market growth will be further slowed down by the government’s strict rules and regulations regarding licence approval.
Base Metal Mining Market: COVID-19 Impact
Due to different political, economic, and legal constraints by numerous nations around the world, the demand for base metal mining decreased during the COVID-19 epidemic. The base metal mining market was significantly impacted in 2020 by the slowing expansion of the construction, automotive, electrical, and electronics industries. These end use sectors account for the bulk of base metal demand, including zinc, copper, and aluminum. In turn, this affected the demand for base metals as growth in end-use industries like building & construction, automotive, electrical, and electronics shrank. By the end of 2021, the market for is expected to improve.
Base Metal Mining Market – Escalating Demand from Automotive Industry Uplifts Prospects
The rise in demand for copper wires, copper metals, and copper cathodes from the automobile industry is largely driving the growth of the base metal mining market. The demand for base metal mining is rising due to the automotive industry’s rise, impacting how metals like copper, aluminum, and others are used in its numerous uses. The demand for copper cathodes and copper wires is increasing as a result of the development and developments in the electric vehicle sector since these materials are widely employed in the construction of electric vehicles. The International Energy Agency reports that global sales of electric vehicles surpassed 2.1 million units in 2019 and surpassed those of 2018. The stock of electric cars eventually increased as a result to 7.2 million. The number of electric vehicles sold in 2020 increased by 40% from the previous year to 2.94 million units. The need for base metals is being driven by the growth in the production and sales of electric vehicles, which is also fueling the market for base metal mining.
Base Metal Mining Market – Growth of Electrical and Electronics Industry Will Support Growth
One of the key factors fueling the expansion of the base metal mining market is the rise in demand for electronic goods on a global scale. In the electrical industry, copper is frequently used for wiring. The need for base metals like copper and aluminum in the electrical and electronics industry is rising as a result, which will further fuel the market. Semiconductor Industry Association estimates that global sales of semiconductors climbed at a rate of 6.5% to US$439 Bn in 2020 from US$412.3 Bn in 2019. Base metals like copper and aluminum will continue to be in demand as semiconductor sales and production rise. This will further stimulate the base metal mining.
Base Metal Mining Market – Stringent Regulation Creates an Impediment to Growth
One of the biggest obstacles facing the base metal mining market is the variety of law enforcement regulating mining activities worldwide. For instance, the National Environmental Policy Act (NEPA) requires federal agencies to create an environmental impact statement (EIS) for any actions that significantly influence the quality of the human environment. An environmental impact statement (EIS) study that looks at the environmental effects will be a part of mining operations. Legal action will be taken in response to any inconsistency or violation of the regulations. Similar to this, India’s Mines & Minerals (Development and Regulation) Act 1957 (MMDR Act) establishes the legislative framework and regulations for the regulation of mines, including the Mineral Conservation and Development Rules 2017 (MCD Rules). As a result, one of the biggest challenges facing the industry for mining base metals is due to such legal regulations.
Base Metal Mining Market – Aluminum Remains a Leading Category
In the global base metal mining market, the aluminum segment outperformed the other segments in terms of revenue share. Due to its unique characteristics, including resistance to corrosion, lightweight, soft & pliable nature, and highly conductive nature, aluminum is frequently utilised in a variety of items, from kitchen appliances to the construction industry. The International Aluminium Institute estimates that the global aluminum production increased by 2.57% to 65,296 thousand metric tonnes in 2020 from the previous year’s production of 3,657 thousand metric tonnes. 2020 saw an average daily output of 178.4 metric tonnes of aluminum. This is a key factor in the market for the aluminium segment.
Base Metal Mining Market – Construction Category Continues to Surge Ahead
In the forecast period, the construction segment held the largest market share, and it is anticipated that it will continue to rule the base metal mining market during the forecast period. The need for base metal mining is being driven by the rise in demand and use of base metals like aluminum, copper, zinc, and others in the building and construction sector. In addition, the demand for base metals is being greatly fueled by the expansion of a variety of activities in the building and construction industry around the world, which is also bolstering the market for mining base metals. For instance, the World Bank predicted that the cost of spending in the global construction industry would amount to US$11.9 Tn in 2020, an increase of 4.2% from the previous year’s expenditure. As a result, the need for base metals in the building and construction sector is rising, which is fueling the market for mining base metals even more.
Base Metal Mining Market – Asia Pacific Dominates Owing to Growing Reliance on Key Industries
Over the forecast period, it is anticipated that the Asia Pacific base metal mining market will account for the largest revenue share. The demand for base metals, which are used in various applications by these end use industries, is being driven by the increase in population in nations like China and India as well as the countries’ growing dependence on key use industries like the building and construction, automotive, and electrical and electronics industry. For instance, the International Aluminum Institute estimates that China produced 37,337 thousand metric tonnes of aluminum in total in 2020, up 4.3% from the 35,795 thousand metric tonnes produced in 2019. Additionally, the output of aluminum in India was estimated by the Indian Brand Equity Foundation (IBEF) to be 3.6 million tonnes in 2020. In addition, the total amount of aluminum produced in Asia in 2020 was 41,477 thousand metric tonnes, up 0.69% from the 41,190 tonnes produced in 2019. This is fueling the Asia Pacific region’s demand for base metal mining.
North American base metal mining market is anticipated to experience stable revenue growth throughout the forecast period. The primary driver of the market’s expansion in this area is the rising demand for electric vehicles. One of the key elements promoting the expansion of the industry in this area is the plentiful supply of raw materials. Due to the region’s rapid infrastructure development, the rise and expansion of several end user verticals like the building and construction industry will also contribute to market growth. The electronics industry’s capacity increase will also fuel the market’s value growth. Furthermore, the demand for new building projects and operations to develop infrastructure has increased as a result of economic stabilization and rising disposable incomes in many nations. Additionally, the region is developing in sectors that use a lot of base metals, like transportation, manufacturing, and industrial equipment. It is projected that all of these variables will fuel market expansion in the upcoming years.
Global Base Metal Mining Market: Competitive Landscape
In March 2019, ABB attempted to automate every step of the Indian mining industry by releasing a multimedia portfolio called AbilityTM Mine Optimize. Similarly, in August 2018, the first fully automated underground mine in the world, constructed by Australian gold mining company Resolute Mining, costing US$223 Mn. It includes driverless trucks, loaders, and drills.
A few of the players in the base metal mining market include BHP, Freeport-McMoRan, Inc., Antofagasta PLC, CODELCO, Zijin Mining Group Co., Ltd., Norilsk Nickel, Vale, Aurubis, Glencore, and Anglo American.
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