The Future of Global Construction Aggregates

Despite a fall in demand during the world economic crisis, the consumption of global construction aggregates increased during the review period (2006–10), largely due to the positive performance of rapidly-developing regions. While South America experienced the fastest growth in consumption during this time, the US and European markets recorded the largest decline in demand.

London – 25 October 2011 - The turnover for sales of global construction aggregates is expected to increase to over US$150 billion by 2015, aided by the recovery of construction industries around the world. Aggregates consumption is heavily dependent on construction expenditure, and financial stimulus packages invested by the government will significantly improve sales of global construction aggregates.

Demand for aggregates fell with global economic crisis
Until 2007, a combination of low interest rates and easy access to credit led to a boom in the global residential construction market, resulting in a high demand for aggregates, particularly in developed markets such as the US. However, the sub-prime crisis that emerged in the US in late 2007 led to a fall in the demand for residential properties in 2008, a trend that spread to other countries and was a major factor in the global economic crisis that began in the same year. In turn, the financial slowdown reduced the availability of credit and subsequently, the demand for construction worldwide.

The impact of the global economic crisis was comparatively lower in developing nations than developed nations. The majority of emerging economies recorded strong construction industry growth and, consequently, a high demand for aggregates, while the industries of more developed countries fell into decline.

To counter the decline of their construction industries, many governments introduced financial stimulus packages consisting of huge investments in infrastructure projects, a move that led to an increase in the demand for aggregates in the infrastructure construction market. As a result, the consumption of construction aggregates is expected to recover by 2015.

Increased demand from developing countries
The Asia-Pacific, which is the largest consumer of construction aggregates in the world, recorded a significant increase in demand during the review period. The development of the manufacturing and services industries of countries in the region, and continued infrastructure development plans to support urbanization and rapid population growth, has increased the demand for construction aggregates in the region. In particular, increased levels of foreign investment in infrastructure development in India, China and Indonesia have strengthened the demand for aggregates in the region. In contrast, Japan, a developed economy, was the only country in the Asia-Pacific to record a fall in the consumption of aggregates during the review period, due to the decline of its construction industry.

South America, which is one of the largest producers of construction aggregates in the world, also recorded the fastest growth in the demand for the construction material of any region over the review period. This was largely the result of a high level of infrastructure construction activity, as the majority of countries in the region have increased public expenditure in order to improve infrastructure facilities. Brazil, the largest consumer of construction aggregates in the region, has allocated US$880 million for infrastructure and social projects to support its hosting of the 2014 World Cup and 2016 Olympics Games. As a result, aggregate consumption in the region is expected to further increase by 2015.

The Middle East and North Africa consumed the lowest value of construction aggregates, despite recording a positive growth rate over the review period. Growth in the demand for construction materials was largely driven by increased investment in transport infrastructure to improve transport links and create a favorable business environment across the region in order to attract foreign investment. Furthermore, the combination of rapid growth in economic activity and a rising population has increased the need for infrastructural upgrades in the region.

Demand falls in developed countries
Despite accounting for over a quarter of the consumption value of global construction aggregates in 2010, Europe experienced weak growth during the review period due to a fall in construction activity in Western Europe towards the end of 2008. However, this decline was offset by continued construction activity in Eastern European countries such as Poland and the Netherlands, and European construction activity is expected to improve by 2015, as Western European countries emerge from the economic crisis.

In contrast, North America was the only region in the world to register a decline in the consumption of aggregates over the review period. The decline was largely due to the effect of the sub-prime crisis on the domestic residential construction market, which is the largest end user of construction aggregates in North America, as a fall in the number of new housing starts reduced the need for construction materials. However, with the introduction of stimulus packages, construction activity is expected to improve in the US, with the consumption value of aggregates is expected to rise to almost US$30 billion by 2015.

Sustainable aggregates to gain popularity
The global demand for sand and gravel recorded the fastest growth rate of all construction aggregates during the review period. Crushed stone was the most consumed aggregate, accounting for over half of total consumption over the review period.

However, due to increasing global awareness of environmental issues and climate change, the use of recycled and natural aggregates is expected to rise over the next five years. These types will not only record the fastest growth in the consumption of any aggregate over the forecast period, but also increase their share of the turnover of global sales of aggregates from 3.1% in 2010 to 3.5% in 2015.

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Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

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For more information on the article, please contact:

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shelly.wills@industryreview.com

Global Packaging Supplier Industry Outlook Survey 2011–2012

The packaging industry is more optimistic about revenue growth over the next 12 months than for the previous year. This is despite a volatile oil market increasing raw material prices and pricing pressures. Flexible packaging is expected to be one of the fastest growing packaging sectors, driven by industry consolidation and sustainability initiatives.

London – 21 October 2011 - Asia-Pacific will be a significant market during 2011–2012, with the top growth regions in the packaging industry including Singapore, China, South Korea and India. Buyers consider price reductions and product innovation to be the leading actions for suppliers to secure business from buyers. Meanwhile, the ability to target specific audience niches, flexibility and the ability to generate leads are considered by packaging suppliers to be the most critical success factors. Suppliers can also invest in R&D and develop unique IT solutions to enable buyers to optimize their processes and reduce costs.

Optimism for revenue growth in the packaging industry
Over half of all respondents across the packaging industry are more optimistic about revenue growth for their company over the next 12 months than for the previous year. Reasons behind this trend include strong growth in emerging markets such as India and China, decreased global economic uncertainty, a rise in sales innovation and increasing production and process efficiency. Flexible packaging is expected to be one of the fastest growing packaging sectors, driven by industry consolidation and sustainability initiatives. In addition, technological developments such as improved recycling techniques and the development of compostable packaging materials have helped to increase the profitability expectations of industry respondents.

Volatile oil market of concern
Raw material prices, pricing pressures and cost containment are the most pressing immediate business concerns for the global packaging industry. This is largely due to recent volatility in the oil market, which has pushed up operating costs. Companies are therefore taking various measures to contain costs, including investment in sophisticated technologies such as robotics to increase efficiency.

Asia-Pacific a key region
The top growth regions in the packaging industry include Singapore, China, South Korea and India. Increased domestic and regional consumption, driven by strong economic growth, in the Asia-Pacific region has increased the demand for packaging in countries such as Singapore, while buyers and suppliers consider India and China to be the two most important markets for potential growth.

Targeting specific markets key to supplier success
The ability to target specific audience niches, flexibility and the ability to generate leads are considered by packaging suppliers to be the most critical success factors. At present, most companies prefer to focus their marketing strategy on a narrow target market of prospective customers instead of the total market. Similarly, flexibility in customizing services is identified as the most crucial factor for business continuity. Therefore, companies are trying to bring more flexibility, scalability, extensibility and integration across the distribution channels. This encourages collaborative relationships with partners. Many companies have realized that customizing the sales process ensures conformity with customer buying processes. Companies therefore look for value-adding products and services to attract customer attention.

Buyers expect low prices and innovative products
Buyers consider price reductions and product innovation to be the leading actions for suppliers to secure business from buyers, as expressed by half of respondents. Improving customer service and the reduction of costs are also given high importance by buyers, with 45% of respondents giving a positive response to each factor. Suppliers can also invest in R&D and develop unique IT solutions to enable buyers to optimize their processes and reduce costs. One such example is the development of a cost optimization packaging system (COPS) by Singapore Institute of Standards and Industrial Research (SISIR's) packaging center, which will help buyer companies minimize their distribution costs by optimizing the use of space and packaging materials and rationalizing logistical costs.

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We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

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For more information on the article, please contact:

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The Future of Global Construction Aggregates

Despite a fall in demand during the world economic crisis, the consumption of global construction aggregates increased during the review period (2006–10), largely due to the positive performance of rapidly-developing regions. While South America experienced the fastest growth in consumption during this time, the US and European markets recorded the largest decline in demand.

London – 20 October 2011 - The turnover for sales of global construction aggregates is expected to increase to over US$150 billion by 2015, aided by the recovery of construction industries around the world. Aggregates consumption is heavily dependent on construction expenditure, and financial stimulus packages invested by the government will significantly improve sales of global construction aggregates.

Demand for aggregates fell with global economic crisis
Until 2007, a combination of low interest rates and easy access to credit led to a boom in the global residential construction market, resulting in a high demand for aggregates, particularly in developed markets such as the US. However, the sub-prime crisis that emerged in the US in late 2007 led to a fall in the demand for residential properties in 2008, a trend that spread to other countries and was a major factor in the global economic crisis that began in the same year. In turn, the financial slowdown reduced the availability of credit and subsequently, the demand for construction worldwide.

The impact of the global economic crisis was comparatively lower in developing nations than developed nations. The majority of emerging economies recorded strong construction industry growth and, consequently, a high demand for aggregates, while the industries of more developed countries fell into decline.

To counter the decline of their construction industries, many governments introduced financial stimulus packages consisting of huge investments in infrastructure projects, a move that led to an increase in the demand for aggregates in the infrastructure construction market. As a result, the consumption of construction aggregates is expected to recover by 2015.

Increased demand from developing countries
The Asia-Pacific, which is the largest consumer of construction aggregates in the world, recorded a significant increase in demand during the review period. The development of the manufacturing and services industries of countries in the region, and continued infrastructure development plans to support urbanization and rapid population growth, has increased the demand for construction aggregates in the region. In particular, increased levels of foreign investment in infrastructure development in India, China and Indonesia have strengthened the demand for aggregates in the region. In contrast, Japan, a developed economy, was the only country in the Asia-Pacific to record a fall in the consumption of aggregates during the review period, due to the decline of its construction industry.

South America, which is one of the largest producers of construction aggregates in the world, also recorded the fastest growth in the demand for the construction material of any region over the review period. This was largely the result of a high level of infrastructure construction activity, as the majority of countries in the region have increased public expenditure in order to improve infrastructure facilities. Brazil, the largest consumer of construction aggregates in the region, has allocated US$880 million for infrastructure and social projects to support its hosting of the 2014 World Cup and 2016 Olympics Games. As a result, aggregate consumption in the region is expected to further increase by 2015.

The Middle East and North Africa consumed the lowest value of construction aggregates, despite recording a positive growth rate over the review period. Growth in the demand for construction materials was largely driven by increased investment in transport infrastructure to improve transport links and create a favorable business environment across the region in order to attract foreign investment. Furthermore, the combination of rapid growth in economic activity and a rising population has increased the need for infrastructural upgrades in the region.

Demand falls in developed countries
Despite accounting for over a quarter of the consumption value of global construction aggregates in 2010, Europe experienced weak growth during the review period due to a fall in construction activity in Western Europe towards the end of 2008. However, this decline was offset by continued construction activity in Eastern European countries such as Poland and the Netherlands, and European construction activity is expected to improve by 2015, as Western European countries emerge from the economic crisis.

In contrast, North America was the only region in the world to register a decline in the consumption of aggregates over the review period. The decline was largely due to the effect of the sub-prime crisis on the domestic residential construction market, which is the largest end user of construction aggregates in North America, as a fall in the number of new housing starts reduced the need for construction materials. However, with the introduction of stimulus packages, construction activity is expected to improve in the US, with the consumption value of aggregates is expected to rise to almost US$30 billion by 2015.

Sustainable aggregates to gain popularity
The global demand for sand and gravel recorded the fastest growth rate of all construction aggregates during the review period. Crushed stone was the most consumed aggregate, accounting for over half of total consumption over the review period.

However, due to increasing global awareness of environmental issues and climate change, the use of recycled and natural aggregates is expected to rise over the next five years. These types will not only record the fastest growth in the consumption of any aggregate over the forecast period, but also increase their share of the turnover of global sales of aggregates from 3.1% in 2010 to 3.5% in 2015.

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About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

For more information, please visit our website at www.industryreview.com

For more information on the article, please contact:

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shelly.wills@industryreview.com

Sustainability Management of Buyers in the Airport Industry to 2012

Although there is an increase in the demand for sustainable products and services across the airport industry, the survey has identified that fewer buyer organizations are actually willing to pay more for sustainable products and services.

London – October 19, 2011 – The sustainability management budgets of airports industry buyers are expected to rise by an average of over 5% over the next year, with nearly half of survey respondents expecting an increase. ‘Cost savings’, ‘managing corporate reputation’ and ‘compliance with legislation’ are considered to be the major reasons for the increase in sustainability budgets.

The positive trends seen here indicate a rising awareness in the importance of corporate sustainability management, even in times of financial crisis. The results demonstrate a managerial awareness of how a focus on sustainability can help to both mitigate risks and increase the opportunities arising from long-term economic, environmental and social trends.

Buyers expect a rise of over 5% in sustainability budgets
ICD Research’s Industry Survey 2010 revealed that the sustainability management budgets of buyer respondents are expected to rise by an average of over 5% over the next year. However, several buyer companies also wish to decrease their sustainability budget due to the recession.

Further analysis of respondents reveals that both buyer and supplier companies are planning allocate a considerable amount of their procurement budget on stakeholder awareness, education and training.

Saving costs and managing corporate reputation encourage the adoption of sustainability practices
Airport operator company respondents consider ‘cost savings’, ‘managing corporate reputation’ and ‘compliance with legislation’ to be major factors in the adoption of sustainability practices. Airport support services companies are also influenced by similar factors; however, these respondents consider ‘attracting new customers’ to have a higher influence than ‘compliance with legislation’.

While sustainability is often considered costly, ‘cost savings’ is actually a major factor in the adoption of sustainable practices for the majority of companies in the airports industry. Companies that manage and plan their operations to reduce environmental impacts are able to identify significant savings in capital and operational costs. Furthermore, processes that consume fewer resources, and have lower emissions and waste streams are beneficial to the organization, its customers and the environment.

Buyer respondents identified ‘difficulty to change habits of the existing employees’, ‘lack of clear business case’, ‘lack of understanding or awareness’ and ‘difficult to measure’ to be the most important challenges to the effective implementation of sustainable practices in the airports industry.

ISO 14001 certification and the use of recyclable products major criteria for supplier selection
The ICD Research Industry Survey 2010 identified that the majority of buyer companies consider ISO 14001 certification, which is designed to help companies achieve consistent environmental regulatory compliance and embeds the concept of continuous improvements in environmental performance, and the use of recyclable products to be major criteria for supplier selection.

Although buyer companies have established policies to incorporate sustainable procurement, they are yet to include reporting on greenhouse gas emissions as a specific criterion for selection. Companies that are already implementing these measures are doing so because of other factors, such as cost reduction, waste reduction, corporate reputation and competitiveness.

Sustainability more important following the recession
Notably, over one-third of airport operator respondents state that they consider sustainability to be more important following the recession. Furthermore, 40% of airport support services respondents consider sustainability to be more important or a leading priority after the recession. Increasing awareness of and demand for environmental concerns are making sustainable initiatives a point of differentiation between supplier companies.

As a significant number of buyer companies consider sustainability practices to be either important or a leading priority, design and engineering companies are encouraged to design airports that will be sustainable in terms of economic, environmental and social factors.

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About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

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For more information on the article, please contact:

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shelly.wills@industryreview.com

Global Power Supplier Industry Outlook Survey 2011–2012

Overall, the global power industry is optimistic about revenue growth and marketing budgets of power industry suppliers are expected to rise by over 7% over the next 12 months.


London – October 14, 2011 – The power industry is confident of revenue growth as economies recover from the global financial crisis and weak growth. Increased investment in clean energy is a key driver, partially as a result of government economic stimulus plans focusing on environmentally friendly enterprises and partially as a result of sharp rises in international oil prices. In addition, strong growth in emerging markets such as India and China has contributed to the increase in optimism.


This growth is expected to be strongest in emerging markets. The expansion of business activities in emerging markets, along with changing consumer lifestyles and a rise in disposable income, will stimulate the demand for electronic goods, and power.


However, market uncertainty remains high. Limited fossil fuel resources, high exploration costs, the high cost of building renewable energy plants, stringent market regulations, including emission norms, and rising competition in the market all have contributed to this uncertainty.


In addition to revenue growth, marketing budgets are expected to increase. Almost 30% of respondents expect their marketing budget to rise between 5% and 10% due to greater government funding for renewable energy projects and capacity increases. Larger marketing budgets will result in increased investment in direct mail campaigns, online media and events.


Optimistic expectations for revenue growth
Almost two-thirds of respondents across the power industry are more optimistic about revenue growth for their company over the next 12 months. Reasons behind this trend include significant investment in clean energy due to a sharp rise in international oil prices, population growth and concern over carbon emissions. In addition, strong growth in emerging markets such as India and China has contributed to the increase in optimism. Investments in the power sector are also expected to grow in other regions such as Central and Eastern Europe.


Increased merger and acquisition activity expected
Executives from power industry buyer companies expect increased levels of consolidation in their industry over the next 12 months. High growth in emerging markets and overcapacity in developed regions, and the need to develop new efficient technology solutions as a long-term priority for companies, is expected to drive M&A activity. For 2011, the key factors behind the expected increase in the level of consolidation in the industry have changed to include the need to expand geographical presence, the optimum utilization of production capacity and to add new capabilities.


Emerging markets the highest growth regions
The top five growth regions in the power industry are identified as India, China, the Middle East, Brazil and Eastern Europe. The expansion of business activities in emerging markets, along with changing consumer lifestyles and a rise in disposable income, will stimulate the demand for electronic goods. The industrial demand for power is also increasing on a daily basis, adding to a high existing demand for power globally. India is expected to add 82 gigawatts of capacity to its power sector over the next 5 years, with total investment reaching US$200 billion, including the US$120 billion earmarked for power generation alone. Moreover, high growth in infrastructural projects, the growth of the industrial sector, the rising population and investment in renewable projects have led to a rise in investment opportunities in China. Meanwhile, the Middle East has emerged as another high growth power market driven by the high demand for power for power-intensive infrastructure and construction projects in the region.


Market uncertainty a major concern
Market uncertainty, responding to pricing pressure, and the retention and recruitment of staff are the most immediate business concerns for the global power industry. Market uncertainty has remained a leading concern since 2009. Limited fossil fuel resources, high exploration costs, the high cost of building renewable energy plants, stringent market regulations, including emission norms, and rising competition in the market all have contributed to uncertainty.


Rising marketing budgets
ICD Research’s industry survey revealed that, on average, the marketing budgets of power industry suppliers are expected to rise by over 7% over the next 12 months. Moreover, 27% of respondents expect their marketing budget to rise between 5% and 10% due to greater government funding for renewable energy projects and capacity increases, which are expected to increase the marketing budgets of suppliers through investment in direct mail campaigns, online media and events. The average size of the global, annual marketing budget of power industry supplier respondents in 2009 was US$3 million, which has declined to US$2.8 million in 2011.


To purchase the full version of the ‘Global Power Supplier Industry Outlook Survey 2011–2012: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies’ report, please click here.



About Industry Review:


Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.


We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.


The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.


With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.


For more information, please visit our website at www.industryreview.com


For more information on the article, please contact:


Shelly Wills
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shelly.wills@industryreview.com

Brazilian Mining Industry Forecast Until 2015

The Brazilian mining industry recently experienced a strong period of growth, and according to a study by ICD Research, the growth prospects for the industry will remain strong, despite factors such as increased royalty rates, environmental challenges and illegal mining.


London – October 12, 2011 – Increased Foreign Direct Investment (FDI) and sustained levels of demand, coupled with the recovery of global economies indicates steady future growth for the Brazilian mining industry. Brazil possesses rich natural mineral resources such as iron ore, manganese and gold, and as a result, the country’s mining industry is one of the largest in the world.

Robust economic growth and substantial demand for minerals
Fuelled by robust economic growth, the Brazilian mining industry was estimated to value approximately US$23 billion in 2009, after registering a strong Compound Annual Growth Rate (CAGR) during the review period (2005–09). In volume terms, total mineral production stood at 472 million tons in 2009.

The expansion of key end-user markets such as construction, manufacturing and power will continue to drive demand for minerals, and as a result, throughout the forecast period (2010–15) the Brazilian mining industry is estimated to register steady growth.

Demand for mineral resources and construction equipment
The mining equipment market is expected to significantly increase in value during the forecast period, and the majority of demand will continue to be met by foreign manufacturers. However, the booming economy and increased infrastructure and mining investment will create demand for more durable, safer and more reliable equipment, resulting in growth opportunities for foreign and domestic companies throughout the forecast period.

With Brazil hosting the 2014 UEFA World Cup and the 2016 Olympics in Rio de Janeiro, growth in the mining and construction equipment industry is expected to be substantial throughout the course of the forecast period.

Mining Code amendments
Prior to the 1997 amendments to the Brazilian Mining Code, the law did not encourage foreign investment in mineral resources. However, the Brazilian Constitution and the amended Mining

Code (1997) have provided greater flexibility for investment in the industry. Increased focus on privatization is expected to fuel investment, as the law now allows 100% equity ownership, either by means of privatization or by direct acquisition.

In addition, low income taxes have been included in the revised Brazilian mining code, and the import tax for minerals has been reduced, depending on the mineral type, and is levied on net profit. These changes to the mining code have made Brazil an attractive destination for domestic, private and foreign investment.

Investment potential
The Brazilian economy received total foreign investment (FDI) of approximately US$45 billion in 2008, an increase of approximately 30% over total FDI recorded in 2007. However, in 2009, as a result of the global financial crisis, investment in the mining sector was significantly less than investment recorded in the previous year.

Despite the sharp decline in investment, the effects of the global financial crisis on the country’s mining industry were relatively short lived, and due to Brazil’s substantial iron ore resources, domestic and foreign investment has been increasing since 2010. In particular, China is keen to secure stable supplies of iron ore in order to satisfy the country’s demand for metals.

Market entry
In the past two decades, the Brazilian government has implemented a series of measures in order to encourage private participation in the country’s previously controlled mining industry, such as legislation which encourages mergers, joint ventures and privatization. This resulted in increased capital inflows into new technology and expansions, leading to improved efficiency in the Brazilian mining industry.

Increased royalty rates
The Brazilian government is considering the implementation of a new royalty payment system in the industry, which could increase the fees that existing mining companies, such as Vale, pay to the Brazilian government. The revised fee is proposed for mining firms that do not add value to the domestic steel industry but export the majority of the raw material they produce to other countries. With the implementation of this royalty system, mining companies are expected to experience increased pressure on profit margins.

Criticism from environmentalists
Brazil is one of the world’s largest producers of gold and the country has significantly increased investment in the discovery and utilization of gold resources. However, expansion into the Amazon region has met considerable criticism from environmentalists worldwide. In addition, the amount of harmful mercury entering the environment from gold mining activities is expected to increase significantly in the short term.

Illegal mining
The security of mining assets is a concern for mining companies in Brazil. Companies operating within the country face the threat of theft of gold and other precious metals from mines, which result in losses for mining companies.

To purchase the full version of ‘The Brazilian Mining Industry – Market opportunities and Entry Strategies, Analyses and Forecasts’ report, please click here.


About Industry Review:

Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

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Polish Mining Opportunities and Entry Strategies

Exports of minerals in Poland are expected to increase during the forecast period as a result of increased demand from developing economies, which were less affected by the global economic crisis. The growth of the Chinese and Indian economies is expected to increase the demand for Polish metal exports, with China expected to become one of the major importers of minerals from Poland in the next five years.

London – 07 October 2011 – The Polish mining industry is undergoing a period of transition as it continues to record growth. While coal accounts for the majority of mineral production in the country, exports to major export destinations are expected to fall due to stricter EU guidelines surrounding greenhouse gas emissions. However, according to a study conducted by ICD Research, the demand for non-metallic minerals and metals will increase due to rapid domestic development and the construction boom in China and India. Furthermore, the privatization of the industry will increase foreign investment as confidence in the sector continues to grow.

The value of the Polish mining industry grew from US$6.1 billion in 2004 to US$12.3 billion in 2009. However, the industry recorded a decline in both production volume and value in 2009 as a direct outcome of the global economic crisis and its negative impact on European economies. Both the volume and the value of the minerals produced in the country registered a decline in 2009.

The total volume of minerals produced in the country is expected to increase leading up to 2015. The domestic demand for metals is expected to increase due to the growth of the manufacturing industry. Furthermore, the demand for non-metallic minerals is expected to increase as a direct result of the large-scale construction and infrastructure projects emerging from Poland’s hosting of the UEFA European Football Championship 2012. However, despite accounting nearly two-thirds of industry production, the production of coal is expected to decrease over the forecast period.

EU policies expected to decrease coal production
Coal accounts for the majority of mineral production in the country. However, coal production declined by almost 25 million tons over the review period, largely due to the removal of government subsidies from the sector, which maintained the price of coal at an acceptable level.

Furthermore, future Polish energy policies will encourage a major decline in the production of coal and a shift to cleaner energy under EU guidelines to reduce its emissions of greenhouse gases. The Energy Policy of Poland states that hard coal production should decline to approximately 80 million tons by 2020, with none exported. However, as coal is cheap, readily accessible and in abundance, policies will need to be enforced in order to reduce the use of the mineral in the country.

Global growth expectations
The majority of Polish minerals exports are bought by neighboring EU countries. Germany accounted for a quarter of the total mineral exports value in 2008, followed by the Czech Republic with almost 10% and France with approximately 6%. Therefore, the recession of EU economies in 2009 resulted in a decline in the demand for minerals.

Growth in investor confidence
Poland is the fastest developing country in the EU and is ranked among the top 10 countries in the world for FDI confidence, second only to Germany in Europe. Despite the global financial crisis, foreign direct investment (FDI) in the Polish mining industry rose in 2009. This is largely due to the decision of the government to increase privatization in the industry. As a result of such policies, Poland was the only country in the EU that did not enter recession during the recent crisis, and foreign investor confidence is expected to continue to rise during the forecast period.

Privatization increases foreign investment
The Polish government is keen to privatize its state-owned mining companies by the end of 2011 due to its high fiscal debt. This will be a major factor in creating opportunities for foreign investors to acquire businesses in Poland. The industry requires over US$7 million of investment by 2015 to remain competitive with other global markets. Disinvestment will take place through the issue of shares, public offers or private individual investments.

During 2009, the government failed to reach its target from asset sales; however, in the first six weeks of 2010, an improved economic environment saw over US$1 billion added to the total proceeds through privatization.

Foreign mining companies have only a small market presence in the Polish mining industry, with no foreign firms operational in the copper, silver or coal markets. However, foreign companies such as ArcelorMittal have an increasing presence in the steel and aluminum markets through wholly-owned subsidiaries.

In particular, opportunities are expected to emerge for private and foreign investors to capitalize on the large coal, silver and copper deposits in the country. However, the strong presence of industry unions as a direct result of the previous state ownership of the industry may pose a challenge for potential investors. Not only have mining unions been successful in changing government policies, but they have also often been successful in postponing the privatization of many companies, including KGHM Polska Miedz and Bukowa Gora.

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