Sustainability

In the pits?

December 05, 2013

Global

December 05, 2013

Global
David Line

Partner

David was a managing editor for The Economist Group's thought leadership division in Asia. He has been writing about Asian economics, politics and finance for over 14 years. He has led numerous major research projects in the region, focusing on financial services, including most recently a series of papers on free-trade agreements in the region, several studies on the internationalisation of the renminbi, and the landmark Bank of America Merrill Lynch CFO Outlook Asia series. Among other things he is the author of a major study of middle-market companies in Japan and a chapter on the long-term future of the financial services industry in a 2015 Nikkei book charting global megatrends to 2050.

David was formerly Associate Director in Tokyo of The Economist Corporate Network, a membership-based advisory service for senior executives, and a reporter for the EIU's breaking news service, ViewsWire. He holds Masters degrees in Global Finance from NYU Stern School of Business/Hong Kong University of Science and Technology, in Japanese Studies from the School of Oriental and African Studies (University of London), and in Modern History from Oxford University.

This report assesses the outlook for companies in the mining and metals sector in the wake of slowing industrial commodities prices worldwide.

Report Summary

The report assesses the state of the metals and mining industry as it adapts to the post-boom era, answering four questions: How has the industry’s change in fortunes in recent years affected investment by mining companies and what implications does this have for their future growth? What impact has the slowdown had on M&A, corporate dealmaking and industry consolidation? And finally, what strategic and operational issues do new management teams need to get to grips with to ensure their companies emerge as winners in the new environment?

"Has there been a level of innovation and adoption of technologies to match other industries? The answer is no. There’s a gap. And that’s because we ride cycles up and down and this kind of investment is the first to get chopped when times are tough."

Research Methodology

The report is based on EIU forecasts and analysis, extensive industry-level research, and in-depth interviews in key markets with business executives and experts from various companies, including:

•    Atlas Iron
•    First Quantum Minerals
•    Fortescue Metals
•    Freeport McMoRan
•    Hancock Prospecting
•    Heidrick & Struggles, global mining practice
•    Japan Oil, Gas and Metals National Corporation
•    Mitsui & Co
•    Peabody Energy
•    White & Case, metals & mining practice
•    Whitehaven Coal
•    Wood Mackenzie, metals & mining consulting

 

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