Non-Metal Mining & Quarrying

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 2,700 non-metal mining companies in the US develop mine sites, extract non-metallic minerals from mines, and process the minerals mechanically through beneficiation (crushing, grinding, washing, separating, and concentrating) or by using chemical or electrochemical techniques. Products include dimensional stone blocks or slabs, crushed or broken stone, sand and gravel, clay, and minerals such as potash, soda, borate, sodium, potassium, and phosphate.

Injuries and Fatalities Drive Regulation

The mining industry has a high injury and fatality rate.

Environmental Impacts Of Extraction

During operation, mining companies must control soil erosion and prevent runoff that could contaminate nearby bodies of water.

Industry size & Structure

The average non-metal mining company operates out of one to two locations, has about $58 million in annual revenue, and employs about 37 workers.

    • The non-metal mining industry consists of about 2,700 firms that employ 100,800 workers and generate about $156 billion annually.
    • Major industry segments include dimensional and crushed stone mining and quarrying; sand and gravel quarrying and dredging; and clay, ceramic, refractory, and other nonmetallic mineral mining and quarrying.
    • About 71% of establishments have fewer than 20 employees.
    • 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.
    • Large US companies include Martin Marietta Materials, The Mosaic Company, Compass Minerals International, Intrepid Potash, and United States Lime & Minerals.
                                      Industry Forecast
                                      Non-Metal Mining & Quarrying Industry Growth
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      Nov 27, 2024 - Record High Producer Prices
                                      • Producer prices for non-metal mining and quarrying firms rose 5.5% in September compared to a year ago after climbing 6.2% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by non-metal mining and quarrying firms grew 2.4% year-over-year in October, while average industry wages inched up 0.6% YoY in September to $31.08 per hour, BLS data show. Producer prices are at record high levels, which helps to mitigate rising payrolls.
                                      • Peabody Energy, one of the nation’s largest coal mining companies, is joining with RWE Clean Energy to repurpose reclaimed land previously used for mining for solar energy projects, Coal Age reports. The partnership brings together RWE’s experience in developing and operating clean energy projects and Peabody’s significant land resources to develop 10 potential projects on reclaimed land in Indiana and Illinois, according to Coal Age. RWE will acquire seven of the projects and enter into a joint venture with Peabody to continue development of the three others. Combined, the renewable energy projects planned for the reclaimed lands could generate enough electricity to power the equivalent of over 850,000 homes across the region, Coal Age reports. “The development of utility-scale solar and storage projects on reclaimed land previously used by our coal mining operations is consistent with our mission and beneficial for all our stakeholders,” says Peabody’s chief development officer.
                                      • According to USGS Mineral Industry Survey estimates, production and consumption of crushed stone and sand and gravel declined in the second quarter and the first half of 2024. An estimated 404 million metric tons (Mt) of crushed stone was produced and shipped for consumption in the US in the second quarter, a decrease of 5% compared to a year ago, while production in the first half fell 5% YoY. The five leading producing states (Texas, Florida, Pennsylvania, Missouri, and Ohio) saw production decline 9% in the second quarter YoY. US output of construction sand and gravel fell 7% in Q2 and 6% in the first half, while total production in the top five producing states fell 10% versus Q2 2023. Aggregates play a key role in the construction industry, with a total of $35 billion of crushed stone and sand and gravel produced in the US in 2023.
                                      • According to the National Mining Association (NMA), a broad coalition of US mineral and energy producers supports the Energy Permitting Reform Act of 2024, bipartisan legislation introduced in July. The bill, which was advanced in the Senate Energy and Natural Resources Committee, would accelerate the permitting process for critical energy and mineral projects of all types in the US by reforming leasing, permitting, and the judicial review process for certain energy and minerals projects. NMA President and CEO Rich Nolan cited a report released by S&P Global that found it takes an average of 29 years to bring a mine online in the US, an untenable situation if the US is to secure the critical minerals needed to secure supply chains and compete with China. Coal leases on federal land, securing rights-of-way across Indian land, and hardrock mining mill sites are covered in the bill.
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