Analysis of global mining in 2015 and outlook for 2016

Over the past four years,as most mineral prices shock down,mineral exploration budget continued to decline,and the discoveries of new deposits have been reduced,the value of the mineral company has shrunk seriously as well as the company's market value is underestimated,with the impact of the weak global economic recovery.With the sharp drop in the price of mineral products,high cost mines have been closed down or suspended.As a result,the average cost of mine production will be pulled down,especially in the iron ore mining.The market adjustment in the mining winter is not only washing off a lot of mining projects with poor quality,but also to withdraw from speculating.With the mining market returns to a rational level,a new order of mining is being reconstructed.In the process of market self purification,the mining giant with high quality resources will use its low-cost price advantage to expand the market share.And thus,the market concentration may be further improved in the near future.It is found that the last round of the global mining bear market is corresponding to 1997~2002,with a mining capital spending fall by 42%.As of the end of this year,the mining capital spending fell by 30% from the peak in 2012,and in the next 2 years there is still some room for 15%.The last round of the bear mining market in capital expenditures lasted for 7 years to return to the 1997 level.According to the projections,the decline in the mining capital spending will continue to be at least 2 years,after that it is likely to rebound.