Market Trends of Mineral Processing Equipment Industry
Iron is Poised to be the Fastest-growing Segment Over the Forecast Period
Iron is critically essential for the construction and other manufacturing industries. In the construction industry, 90% of all refined metal is accounted for by steel. However, falling ore grades and high production costs are hindering production in some parts of the world.
- In 2023, the total volume of usable iron ore produced worldwide amounted to an estimated 2.5 billion metric tons. The leading iron ore-producing country that year was Australia, which produced 960 million metric tons of usable iron ore.
Iron production in Brazil and Australia witnessed a massive increase, with companies investing in new mines to replace older ones. For instance, BHP approved USD 4 billion for iron ore-related projects in Western Australia, indicating growth for iron ore processing equipment.
- In 2023, Anglo American produced around 36 million metric tons (wet basis) of iron ore in the Kumba mine, South Africa. Anglo-American is a multinational mining company headquartered in Johannesburg and London.
Owing to the growing demand for iron ore across the world, several mineral processing equipment companies are securing various iron processing equipment projects to remain at the forefront of the competitive race. For instance,
- In January 2024, TAKRAF, a renowned provider of cutting-edge technological solutions for the mining sector, successfully secured a significant contract with Société Nationale Industrielle et Minière (SNIM) for the provision of a comprehensive iron ore processing and handling system, including crushing, screening, and material handling facilities, as well as a train loading station for the F'Derick project in Mauritania.
The increasing demand for these metals will lead to rising mining activity, which may help drive the demand for new mineral processing equipment over the forecast period.
Asia-Pacific is Expected to Hold a Significant Market Share
Asia-Pacific stands as the primary market for mineral processing equipment, led by countries such as China, Australia, India, and Japan, with China alone accounting for over 50% of the market demand in 2023. This dominance is attributed to the region's abundance of active mines and the growing trend of repurposing unused mine sites for exportation. In addition, the region is experiencing heightened demand for metals and minerals driven by industrial and infrastructure development initiatives. For instance,
- In February 2024, India's index of mineral production rose to 139.6, 8% higher than the level recorded in February 2023. The cumulative growth of this index for the 11 months from April to February of FY24 over the corresponding period of the previous year was 8.2%.
- Iron ore production in the country increased from 230 MMT during the 11-month period from April to February of FY23 to 252 MMT during the corresponding period of FY24, at a 9.6% growth rate.
- In 2023, an estimated 280 MMT of iron ore was extracted in China. China is the third-largest producer of iron ore in the world. China's significant reserves of lithium, essential for lithium-ion batteries used in electric vehicles, have spurred increased extraction efforts, necessitating the adoption of advanced mineral processing machinery for efficient and safe processing. Moreover, the escalating demand for various minerals and precious metals like coal, copper, bauxite, gold, uranium, and nickel has prompted the adoption of sophisticated processing equipment to enhance extraction capabilities.
The rise in production of minerls across the region is likely to increase the demand for mineral processing equipment during the forecast period.
