DUBLIN, February 16, 2016 /PRNewswire/ --
A report on the global iron ore market, published on Research and Markets, predicted growth at a rate of 3% between 2015-2019. But the recent collapse in metal prices may affect this growth, with Anglo American Plc reporting a fourth year of losses today and announcing plans to reduce the number of mines it owns.
Rating agency Moody's cut Anglo's debt rating to junk on Monday, with the company losing three-quarters of its market value last year. The mining giant recorded a loss of $5.62 billion in 2015, compared with a $2.51 billion loss the year before. It has promised to cut staffing, stop paying dividend and cut its debt to less than $10 billion by the end of the year.
In a company press release, Anglo announced its intention to sell its stake in the Kumba Iron Ore business, of which it holds 69.7 percent. It also added its Moranbah and Grosvenor coal mines in Australia to the list of assets on offer.
A report on the global coal mining industry had predicted the market to grow steadily at a rate of 2% in terms of consumption, during the same forecast period. It identified the increase in global energy demand, in particular the demand for electricity in developing and emerging countries, as a key trend driving market growth.
Energy costs account for more than 10-15% of the total production cost in the mining industry. As a result, mining equipment vendors are striving to manufacture energy-efficient mining equipment. Energy-saving policies implemented by countries worldwide also create a demand for advanced energy-saving mining equipment for transportation, excavation, washing, and screening processes. A report on the this market projected growth at a CAGR of 4.04% over the period 2015-2019.
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SOURCE Research and Markets