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The North America Mining (Non-Precious Metals) Sectors : A Company and Industry Analysis (May 2006)

  • ID: 656280
  • Report
  • May 2006
  • Region: America, North America, United States
  • Mergent
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This report examines the mining industry in the United States and Canada
Current Environment - Key Points
- US mine output rose in March by an annualized rate of more than 20% in the first quarter of 2006, due to the continued recovery of the oil and gas facilities affected by last year's hurricanes and a surge in the output of coal mines
- The National Mining Association (NMA) expects demand for US coal to hit a record 1.2 billion tons in 2006, up from 1.18 billion last year and forecasts production of 1.16 billion tons
- Soaring metal prices have been attributed to concerns over supply shortages and low global inventory levels
In 2005, US steel prices rose due to high inventory levels, increased steel production from China, rising costs of raw materials, the high rate of consolidation between major steel companies, and global production cuts
- In Canada, mining and oil and gas extraction were the main industries behind most of the recent growth in investment in non-residential structures
- Spurred by record-high base metal prices, the Canadian metals and mining industry concluded the fourth quarter of 2005 with 74 M&As worth a total of C$21.8 billion (US$19.5 billion)

Industry Profile - Key Points
- The estimated value of US metal mined in 2005 exceeded $16 billion
US coal production for 2005 was a record 1.13 billion tons
- US domestic copper mine production for 2005 fell by 0.86% to 1.15 million tons, valued at about $4.3 billion
- In 2005, US iron ore production rose by 0.5% from 54.7 million tons in the previous year to 55 million tons
4% of global iron ore output came from the US
- Production of US uranium concentrate rose by 17.3% to 2.7 million pounds in 2005
- According to Natural Resources Canada (NRCan), the country's mineral production in 2005 was worth C$26.4 billion (US$23.7 billion)
The value of total metal production in 2005 rose 7.7% to C$13.3 billion (US$11.9 billion)
- Canadian exploration expenditure totaled C$1.3 billion (US$1.16 billion), a 10% increase from C$1.2 billion (US$1.07 billion) in 2004, while a further increase of 9% to C$1.4 billion (US$1.25 billion) is expected for 2006
Market Trends and Outlook - Key Points
- Pressure on metals and mining companies from their shareholders to distribute cash windfalls may hinder the mining sector's ability to grow and to improve operations
- US iron ore mines, mainly located in Michigan and Minnesota, are seeing a resurgence of capital project spending due to rising domestic and international demand for steel manufacturing raw materials
- With oil prices breaching $70 per barrel, US scientists announced that they might have discovered a solution for the oil problem - diesel fuel made from coal, natural gas and organic material
- Saskatchewan has some of the richest uranium deposits in the world, but it can take more than ten years for a new discovery to be developed into an operating mine
- The rise in prices of commodities, metals and a strong Canadian dollar have led to the boom in the minerals and mining industry
However, Canadian mining companies are facing an acute lack of skilled workers in an ageing workforce
- With zinc and copper prices reaching all-time highs, Canadian metal mining companies are using their wealth from rising revenue to make acquisitions

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Current Environment - US
- Sector Overview
- Sector Performance
- Leading Companies
- Initial Public Offerings
- Mergers and Acquisitions
Current Environment - Canada
- Sector Overview
- Leading Companies
- Mergers and Acquisitions
Industry Profile - US
- Industry Size and Value
- Industry Focus
- Mining Safety and Health
- Research and Development
- Policy and Regulatory
Environment
Industry Profile - Canada
- Industry Size and Value
- Industry Focus
- Exploration Spending
- Research and Development
- Policy and Regulatory
Environment
Market Trends and Outlook - US
- Pressure from Shareholders
Hinders Mining Growth
- US Iron Ore Miners Expand to
Meet Rising Global Demand
- Coal's Potential as Clean Diesel
- Market Outlook
Market Trends and Outlook -
Canada
- Canada Faces Pressure from
Growing Demand for Uranium
- Commodities Boom Prompts
Skills Shortage
- Revenue-rich Base Metal
Companies Turning to
Acquisitions
- Market Outlook
Currency Conversion Table
The Scope of this Report
Key References
Comparative Data
Reports Coverage

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