December 9, 2023

Underground Mining Market: A Deep Dive into Trends and Growth Factors

A comprehensive analysis of the global underground mining market reveals intriguing insights and promising opportunities for growth in the coming years. This report delves into various facets of the industry, shedding light on key findings and trends that are expected to shape the market’s trajectory.

Market Analysis in Brief

The global underground mining market has witnessed significant growth, driven by the ever-increasing global population and the rising demand for essential natural resources. Various industries such as consumer electronics, IT, automotive, construction, and jewelry continue to expand, fueling the demand for underground mining activities. Additionally, technological innovations and exploratory efforts by both established players and newcomers worldwide are poised to be pivotal factors in further accelerating market growth.

Key Report Findings

  • The global underground mining market reached a value of over US$540 billion in 2020, up from approximately US$520 billion in 2019.
  • Coal remains the most extensively mined mineral in underground operations, accounting for approximately 40% of mining activities.
  • Global coal production in 2019 exceeded 5.2 billion metric tons.
  • The average depth of underground mines stands at 1,200 meters.
  • Projections indicate that underground mining automation will approach nearly US$3.8 billion in the coming year.

Growth Drivers

Underground Mining Complexity Creates Opportunities
Around 40% of global mining operations involve underground hard-rock mining, a more expensive and targeted approach compared to open-pit mining. This difference in cost and productivity presents significant growth opportunities for the underground mining industry. The choice of mining method depends on various factors, including geological conditions and mineral deposit attributes.

Year-on-Year Increase in Mining Revenues Boosts Investments
Increasing investments in mining and exploration activities are expected to drive revenue growth in the underground mining market. The growing demand for precious metals like gold, platinum, titanium, and silver is fueling the need for more underground mining initiatives. The industry showed resilience during the COVID-19 pandemic, with revenues increasing from US$521.4 billion in 2019 to US$544.4 billion in 2020.

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Stoping Dominates Segment Share
Rock breakage is a primary activity in underground mining, and stoping is the most sought-after method, constituting nearly 45-50% of overall production. Other methods like block caving and longwall mining have niche applications based on geological conditions and economic feasibility.

Growth Challenges

High Capital Costs, Safety, and Environmental Concerns
Underground mining entails substantial capital investment in equipment, technology, and infrastructure, potentially limiting profitability. Safety is a major concern due to challenging work conditions and a heightened risk of accidents. Additionally, compliance with environmental regulations can be time-consuming and costly.

Growth Opportunities Across Regions

Prosperity in LATAM, Africa, and Australia
While underground mining accounts for only 12% of Run-of-Mine production, Latin America (LATAM) leads in ROM volume, followed by Oceania. Africa and North America top the list in operating expenditure, with Asia and the Commonwealth of Independent States (CIS) having lower costs per metric ton. Regional cost variations are influenced by mining methods employed, with block caving being prevalent in Latin America and Asia.

Key Market Players – Underground Mining Landscape

Prominent 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.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad