Metal Ore Mining
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 256 metal ore producers in the US are primarily engaged in developing mine sites, extracting ores (metal-bearing rock), and processing it to extract the desired metals, including iron ore (hematite, magnetite, siderite, taconite), precious metals (gold, silver, platinum), copper, nickel, lead, zinc, uranium, radium and vanadium ores, and other metals. Extraction processes include dressing (picking, sorting, washing of ores), milling (crushing, grinding), and beneficiation (processing to improve purity or quality).
Environmental Compliance
Metal ore producers are directly impacted by a wide range of environmental regulations that affect the permitting, operation, and reclamation of mining sites.
Talent Shortage
As the US looks to boost its domestic stocks of critical metals and minerals required for the green energy transition, the mining industry is facing a major shortage of talent.
Industry size & Structure
The average metal ore mining company operates out of one to two locations, has about $105 million in annual revenue, and employs fewer than 50 workers.
- The metal ore mining industry includes 256 firms that employ 44,000 workers and generate $27 billion in annual revenue.
- Most companies operate only one or two mine sites at a time due to the large capital investment in equipment needed for extraction and processing.
- Major industry segments include mining and processing iron ore, gold and silver ore, copper, nickel, lead, and zinc.
- The industry is highly concentrated: the top 20 companies account for 94% of annual revenue.
- Large companies with operations in the US include ArcelorMittal, Hibbing Taconite Company, Cliffs Minnesota Mining Co., Barrick Gold, Newmont Corp., and Freeport-McMoRan. These companies may be vertically integrated with mining and steelmaking operations and mines outside the US.
- Minnesota produces most of the iron ore mined in the US. Almost all iron ore (98%) is used to make steel.
Industry Forecast
Metal Ore Mining Industry Growth
Recent Developments
Dec 16, 2024 - US Mining Under Trump 2.0
- The incoming Trump administration is expected to “significantly prioritize” building more mines, processing facilities, and refineries in the US, as opposed to the Biden administration's focus on international cooperation to reduce US reliance on foreign supply chains for critical minerals, according to Gregory Wischer, founder of critical minerals consultancy Dei Gratia Minerals. Wischer also predicts that the Trump administration will continue and accelerate bipartisan policies strengthening US mineral supply chains. “In particular, I think you can expect the [Trump] administration to focus heavily on domestic onshoring of all parts of the mineral supply chain, especially mineral extraction,” Wischer told Mining Technology (MT) after the election. Trump’s approach will likely entail streamlining the permitting process and imposing tariffs to incentivize domestic mineral production, Wischer adds. Also, Trump’s more relaxed approach to environmental regulation is likely to benefit the mining and fossil fuel sectors, per MT.
- The Good Samaritan Remediation of Abandoned Hardrock Mines Act of 2024, which passed the Senate unanimously in July and the House in December, awaits President Joe Biden's signature, according to the National Mining Association, which supports the bill. If signed, the act would cut the red tape to allow state agencies and nonprofits to begin the long-overdue clean up of an estimated 23,000 legacy abandoned actively draining mines in Colorado, and well over 100,000 nationwide. Previously, the intricacy of federal environmental law had scared off would-be do-gooders from stepping in to clean up actively draining abandoned hardrock mines because they risked becoming legally and financially liable for the pollution. According to the NMA, the bill’s passage will encourage the involvement of mining companies in the clean up. A version of the law was first introduced in Congress in 1999.
- According to Mine Safety and Health Administration (MSHA) data, 2024 is on track to be a record-low year for mining fatalities. As of mid-August, there were 13 fatalities at US mines, seven of which took place at coal mines and six at metal/nonmetal operations. Six of the last seven mining fatalities overall took place at coal mines, according to the agency. Of the six fatalities at metal/nonmetal operations, two occurred at sand and gravel operations, with the other four occurring at a variety of sites, including shale, crushed/broken limestone, crushed/broken stone, and phosphate rock mines. By state, West Virginia counted the most mining fatalities so far this year, with three, all in coal mines. The all-time low for mining fatalities in a single year was 25 in 2016, according to MSHA.
- Producer prices for metal ore mining firms rose to a new high in September, jumping 17.1% compared to a year ago after rising 2.6% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry was unchanged in October year over year, while average wages at mining firms inched up 0.6% in September to $35.17 per hour, BLS data show. The producer price index for metal ore mining firms is up 57% over the past five years on rising demand for metals amid concerns of supply disruptions for some key metals.
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