Industry Analysis & Industry Trends
The US mining sector has grown considerably as the economy has recovered. During the recession, weak demand and subsequent drops in output and prices sent revenue crashing in 2009. The sudden drop in iron and steel demand during the downturn caused iron ore prices to fall significantly, forcing industry operators to curtail production or close mines and processing facilities to reduce costs. In the coming years, the industry is expected to continue benefiting from expanding foreign demand... purchase to read more
Industry Report - Industry Investment Chapter
The Iron Ore Mining industry is highly capital intensive, as substantial amounts of capital are invested in heavy equipment necessary for mining activities. The ratio of labor costs to depreciation charges is indicative of an industry's labor and capital intensities, as this shows the amount of revenue absorbed by labor inputs and capital inputs into production.
High capital intensity arises from the nature of the mining process, which requires significant investment in large-scale earth-moving and processing equipment such as electric shovels and conveyors. The industry also has a substantial working capital requirement because companies require sufficient capital to survive during periods of low prices, when revenue can temporarily be insufficient to cover costs... purchase to read more