Insights

China Mining Tracking & Trends 2015

Due to the global economic slowdown, especially in emerging economies, the global mining industry experienced large-scale restructuring and displayed a significant downward trend. Demands, price and trade of mineral products, mining investment and stock value all showed a decline and contraction to a different extent. This will continue in 2015. Struck by the widely-spread losses in coal industry, the global capital markets IPO hit 10-year low, the companies with serious losses, inadequate capital reserves and mismanagement will find it hard to survive. 

However, looking into the future, it is not all bad news. The number of overseas mergers and acquisitions (M&As) is increasing and companies are beginning to pay more attention to the quality and value of M&As. Pressures from price and cost, push companies to find solutions to improve efficiency. We can see some successful cases. The depression in capital market provides opportunities for companies to find more potential value. The mining trade has encountered difficulties in financing, but as a result the industry has become more standardized and transparent. When the coal industry suffers recession, "survival of the fittest" is the law of nature. There were many issues hidden behind the blind investment in the coal industry in the past. However, today these issues have become visible. We can view this slowdown as a chance for the coal industry to self-correct and adjust.

(Simplified Chinese version only)
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