Mining and Metals Industry Faces Shifting Landscape Amid Economic Uncertainty

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McKinsey's latest report reveals that while the global mining and metals industry has experienced a period of growth, it now faces challenges due to slowing economic growth and delayed transitions to low-carbon technologies. The report highlights both the industry's recent successes and the emerging headwinds.

by McKinsey’s energy and materials practice outlines a global mining and metals industry emerging from a few years of boom and bust and price fluctuations the consulting firm calls unprecedented in scale.

From 2000 to 2023, metals and mining revenues grew by $1.7 trillion, a jump of roughly 75% and affording the industry a 70% slice of the overall materials business which also includes plastics, pulp, and building materials. As a whole, materials represent some 7% of the global GDP. Moreover, Mckinsey points out, mining and metal companies’ debt burden has decreased with net debt over EBITDA ratios of 1.3 times, well below the through-cycle average of 1.8 times.

Thermal coal and steel account for around 60%–70% of revenues and production volumes of 7 billion tonnes and 2 billion tonnes respectively are more than 30 times higher than all other metals and minerals combined. Output by the largest among the latter, aluminum, at roughly 100 million tonnes, does not make much of a dent in the overall total.

 

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