At the beginning of each year, it’s customary to reminisce about the previous year and try to forecast what lies ahead. Historically, 2017 will be remembered as a good year for the mining business, and 2018 has the potential to be a better year. An evolving political landscape continues to shift industry investment globally. Equipment sales have steadily increased, which reinforces what mining executives feel as they move from a position of cautious optimism to confidence.

The amount of investment dedicated to an industrial sector serves as a reflection of the conditions of the market it serves. While that is a reliable barometer, it’s more effective during markets swings. The modest amount of investment made recently, however, tends to overshadow the fact that over the last four years, larger mining companies have been working to optimize operations and strengthen balance sheets. At the same time, small and midsize mining companies have been buying mines from the majors and reorganizing them. For the time being, brownfield investments have supplanted greenfield projects.

Mining companies are opening new mines and government agencies are approving permits. Looking back across the last few months, E&MJ reported that commercial production has been achieved at Rainy River in Canada, Las Bambas in Peru and Haile in the USA, just to name a few. Several mines, such as Ma’aden in Saudi Arabia, Silvergrass and Dugald River in Australia, and Fruta del Norte in Ecuador, have broken ground or started production.

Most of this good news emanates from precious and base metal mining operations. Energy minerals are enduring soft market conditions and decreased demand due to environmental concerns. The uranium sector continues to suffer low prices and low demand. Coal markets, which represent the largest mining-related investment by commodity, have stabilized in the USA and continue to grow in Asia and other parts of the world. The Canadian oil sands miners are the only miners celebrating the recent increase in oil prices.

The political leadership in the USA and Canada have changed on a federal level. The same can be said for a few countries in Latin America. More recently, southern Africa has experienced the same thing. First Zimbabwean President Robert Mugabe was ousted from office and now Jacob Zuma’s days are numbered in South Africa. Only time will tell how these political changes will impact the mining business.

For the second year in a row, the Project Survey has shown improvement. Verifying a noticeable trend, seven of the top 20 countries are now found in the Americas. Canada is the No. 1 country in the world for mining projects and the USA is now fourth. Another sign of improving certainty is the fact that two mining companies recently signed contracts worth hundreds of millions of dollars for mining equipment. As we move into 2018, the mining industry has momentum on its side. Metals prices in general were trading at their highest levels in years. The prospects look good for 2018 for the mining sector. This is not likely the beginning of another Supercycle. Most miners, however, would gladly settle for consistent, manageable growth. Enjoy this edition of E&MJ.

Steve Fiscor, Publisher & Editor-in-Chief, E&MJ