Power and Natural Resources Industry Overview: Metals and Mining

The metals and mining industry is dedicated to the location and extraction of metal and mineral reserves around the world. These reserves are mined for profit and then used in various industrial applications, jewelry-making and as investments. Some of the largest companies in this industry include Glencore, Rio Tinto, BHP and Freeport-McMoRan. 

Metals extraction always increases as market demand grows. Metals used in industrial and jewelry applications grow as economic activity grows, while a slowed economy typically increases the use of precious metals for investment purposes (i.e. gold). Minerals, such as diamonds for example, are also increasingly mined when economic demand necessitates mining growth. 

Overall, the performance mining industry as a whole tends to closely follow global economic conditions. Thus, the industry at large typically sees boom and bust cycles. The sector relies on the development of new uses for metals and minerals to support mining growth. New uses for minerals support the mining sector when economic conditions are not favorable for investment use or the production of jewelry. Additionally, mining companies face challenges such as heavy government regulation, environmental issues, and high operating costs. All of these factors increase the difficulty involved in developing and expanding mining activity.