Rising metal prices and an increase in output form metal mining will lead to global demand for underground mining machinery climbing 4% a year until 2022, says a new industry forecast.
Information provided by the Freedonia Group says the growth will be registered from 2018 to 2022 and will be driven by more mining of metals, which frequently utilises underground methods. Another contributory factor will be the rising mechanisation of China’s coal mining sector, which will demand underground mining equipment as it progresses.
Freedonia’s report says various government initiatives will support this increasing mechanisation, including the closure of smaller, outdated mines.
Also supporting the demand for underground mining equipment will be the increasing use of the latest purpose-built machines in mature markets, while developing economies will also increasingly shift to more sophisticated machinery types.
The report goes on to state, however, that with the rise in natural gas production and with many countries transitioning to renewable fuel sources, the demand for coal will climb at a subpar level globally.