Industry Analysis & Industry Trends
Contract miners provide services that support mining production. Demand for industry services depends on the relative advantages that mining companies derive from outsourcing production, compared with controlling production in-house. Contract miners typically have access to a large pool of machinery and skilled employees that they leverage to win business. The strength of the Mining division is also a crucial factor in industry performance.
Over the past decade, demand for commodities has been strong. During these periods of strong demand, miners (the industry's client base) shift focus to planning new capacity. The core in-house functions undertaken by mining companies include exploration, supply chain management and marketing... purchase to read more
Industry Report - Industry Key Buyers Chapter
Concentration in the industry is high. The top four industry players account for the bulk of industry revenue. To provide value to mining companies, contract miners need to achieve significant economies of scale and scope, which come with size. For example, equipment needs to be as fully utilised as possible. Industry structure is characterised by a small number of large players.
Concentration has increased as larger industry players have purchased smaller ones. For example, Ausdrill entered the ranks of the major players via not only organic growth, but also the acquisition of a number of smaller firms. .. purchase to read more