Global Mining Survey 2013–2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry

Tuesday 19 February 2013, Amsterdam

Throughout the global mining industry, 44% of respondents are ‘more optimistic’ about revenue growth in 2013, compared to 54% in 2012. Although a significant percentage of respondents are confident about their companies revenue growth over the next 12 months, optimism levels have decreased in comparison to 2012, 2011, and 2010; the reasons behind this are volatility in commodity prices, the slowing pace of growth in China, and the continuance of the European debt crisis. Profitability is impacted by issues such as rising raw material, energy, and labor costs, which are creating cost pressures on operations. Additionally, an analysis of respondent expectations by company type reveals a decrease of 6 percentage points in the optimism levels of buyers in 2013 compared to 2012, and 11 percentage points decrease for suppliers.

The top three priorities for global mining industry buyer respondents in 2013 are ‘improving operational efficiency’, ‘expand in current markets’, and ‘focus on sustainability’. The top priorities for the global mining industry in 2012 were ‘improving operational efficiency’, ‘expanding in current markets’ and ‘concentrating on new products and services’, while the emphasis in 2011 was on the ‘expansion of business abroad’.

Figure 1: Revenue Growth Optimism in the Global Mining Industry(%), 2010–2013



Overall, executives from the global mining industry anticipate an increase in the levels of consolidation, with 54% of respondents projecting an increase in merger and acquisition (M&A) activities in 2013.In an attempt to increase profitability and ensure the effective utilization of cash, companies in the mining industry are streamlining portfolios by divestment and the sale of non-core assets. Volatility and uncertain conditions in a turbulent financial environment have decreased the risk absorption capacity of companies, which drives collaborations and partnerships among companies that differ in size and capacity. Moreover, the survey reveals that 53% of buyer respondents have highlighted that they anticipate an increase in merger and acquisition activity in 2013.