Things are finally looking up for the mining industry. According to reports from SNL Metals and Mining, expenses to construct new mines, sustain working capital, and add expansions have risen from nearly $50 billion to $108 billion over the short period of just 5 months. Even though some of these funds may never get spent, reliance and confidence is being restored. Although the mining industry is nowhere near where they were in 2012, the $12.3 billion projected capex is the highest it’s been since the end of 2014. A new copper venture in Chile is the largest of projects announced. It will require an estimated $3.1 billion to construct the mine and $4.4 billion to back the predicted 48-year life span.
How will this benefit the OTR industry you may ask……that answer is an INCREASE IN SALES.
Improvements are in the near future, whether it be in the copper, gold, or coal mining sectors. Business in the mining industry has and probably always will have a roller coaster effect. Hopefully this announcement is the first of many.
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