MINERS are having to dig deeper for copper, gold and iron ore, which is resulting in the need for better equipment, according to a London-based analyst.
Experts say that many easily mined deposits have already been exploited, meaning reserves with lower grades are found deeper and deeper under the surface.
This is putting pressure on manufacturers to develop modifications and enhancements to existing equipment in an era of economic uncertainty which is affecting miners right across the globe.
However, analysts predict that engineering companies such as Sandvik and Atlas Copco will continue to post full order books for equipment.
They say while lower commodity prices will put pressure on the mining sector, the replacement market still looks strong.
“If miners buy less new equipment, they still have to put more money into service and repairs, so the replacement division is more or less the same as the equipment side,” the analyst said.
Michelin president of the earthmover and industrial tyre product line in France, Luc Minguet, says the worsening outlook for metal demand is yet to slow mining activity around the world, and believes the world’s suppliers of drills and machinery will continue to see firm demand for their products.
However, Panoramic Resources managing director, Peter Harold, says the financial crisis is only recent and equipment suppliers could be yet to cop the brunt.
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