Published: Thursday, 05 March 2015 14:02
Written by Steve Fiscor
Several trends are taking place in the mining business. Mining companies are investing in operations, but they have to justify those investments with a healthy rate of return. Cost overruns have simply become unacceptable. They are also looking for ways to improve profit margins by reducing costs at profitable operations and idling those that are either less profitable or losing money. In many cases, they are looking to mechanization, automation and information technology to assist in that endeavor. The major mining companies are also selling or spinning off noncore mining operations to generate cash or get them off their books. A noncore asset could be a mine that produces an outlying metal or mineral with which they no longer have an interest; it could be located in a region they no longer find trustworthy; or both.
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