FACTS AND FIGURES World mining equipment demand to grow 5% annually

World demand for mining equipment is expected to grow 5% annually through 2011, according to a new report issued by Ohiobased research group, Freedonia.

Continued need for metals such as iron, copper and nickel, and the “global thirst” for coal will push spending on mining equipment to well over US$30 billion dollars. The rising cost of minable commodities has helped to boost interest in the search for metals ores and increased demand for mining equipment (machinery and separately sold parts and attachments).

Although production of mining equipment is generally dominated by countries that focus strongly on industrialization and capital equipment industries, such as Japan and the United States, China has forced its way into the industry as a major producer with growing mining interests.

At the centre of Asia/Pacific demand sits China and India, both having seen growth in the use of mining machinery.

China, a major source of iron ore and bauxite, has increased investment in its local mining industry. Coal output alone has nearly doubled production from 2001 to 2006 in order to meet the country’s need for energy to support its booming economy and industrial infrastructure.

India has also seen a growth in coal output due to its burgeoning population, resulting in an increased need for mining equipment.

With companies becoming increasingly interested in targets in Colombia, Brazil and Chile, Latin America is expected to experience a growth in demand.

Increased opportunities in Russia will help boost Eastern Europe’s need for mining equipment.

Global industries have also turned toward developing countries for resources, and in doing so have opened up demand for mining equipment production plants.

In addition to the above information, the study presents historical demand data for 1996, 2001 and 2006, as well as forecasts for 2011 and 2016 in six regions and 33 countries.

The report also examines market environment factors, company market share data and profiles 25 global industry competitors.

— World Mining Equipment to 2011 is available for purchase from www.freedoniagroup.com.