Base Metal Mining Market - Forecast(2024 - 2030)

Base Metal Mining Market Overview

Base Metal Mining Market size is expected to reach at estimated value of $753.3 billion by the end of the year 2030 and is set to grow at a CAGR of 4.1% over the forecast period from 2024-2030. The increase in demand for base metals from various end-use industries like building & construction, automotive industry, electrical & electronics industry and others is highly driving the base metal mining market. The base metals are mined using techniques like bioleaching and hydrometallurgy. In bioleaching, valuable metals are extracted from low-grade ores with the help of microorganisms like bacteria. Hydrometallurgy is a technique in which aqueous solutions, used in extracting metal from ores, concentrates, and recycled or residual materials. These techniques help in making sure the valuable minerals are extracted with the metal, and thus increasing the quality and efficiency of the base metal. Ion exchange resins are also used in the removal of calcium, iron, manganese salts and others from mineral ores for extracting elements such as aluminum, zinc and copper. The increasing demand for copper wires from the electrical and electronics industry is also hugely driving the demand for copper metal/ copper cathodes, which is further driving the base metal mining market.

Within this trajectory, a significant trend emerges, characterized by a heightened focus on sustainable and responsible mining practices. Mining companies are increasingly adopting eco-friendly technologies and processes to minimize environmental impact and adhere to stringent regulations. This trend encompasses the implementation of energy-efficient extraction methods, water recycling systems, and waste reduction initiatives. Additionally, the use of advanced technologies such as automation, artificial intelligence, and data analytics is becoming more prevalent in base metal mining, improving efficiency, reducing operational risks, and optimizing resource utilization. The convergence of environmental stewardship, and technological innovation underscores a holistic approach within the base metal mining industry, aligning it with global sustainability goals and reshaping its future landscape.

Market Snapshot:

COVID-19 impact

• Amid the Covid-19 pandemic, the base metal mining market witnessed a downfall in growth and demand due to various economic and legal restrictions imposed by many countries worldwide. The decrease in the growth of the construction industry, automotive industry, and electrical and electronics industry during the year 2020 also significantly affected the base metal mining market. The majority of the demand for base metals like aluminum, copper, and zinc comes from these end-use industries. Therefore, the decline in the growth of end-use industries like building & construction, automotive, electrical, and electronics also impacted the demand for base metals. However, the base metal mining market improved by the start of the year 2022.

Report Coverage

The report: “Base Metal Mining Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Base Metal Mining Industry.
By Product: Aluminum, Copper, Zinc, Lead and Others.
By Type: Mineral Processing, Machinery, Crushing, Pulverizing and Screening equipment, Underground Mining Machinery and Others.
By End-Use Industry: Building & Construction, Automotive, Electrical & Electronics, Consumer Goods and Others.
By Geography: North America (USA, Canada, Mexico), Europe (Germany, UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of Europe), APAC (China, Japan India, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and RoW (Middle East and Africa).

Key Takeaways

• Asia-Pacific market held the largest share in the base metal mining market owing to the increase in demand for base metal from key use industries like construction and automotive industry in countries like India, China and Japan.
• The growth in the electrical and electronics industry coupled with the advancements in the electronics sector is increasing the demand for base metals, which is further contributing in the growth of base metal mining market.
• The increase in demand for various base metals from the construction sector is one of the major factors driving the base metal mining market.
• Amid the Covid-19 pandemic, the base metal mining market witnessed a major downfall due to the various restrictions laid down by countries across the globe.
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Base Metal Mining Market Segment Analysis – By Product  

Aluminum segment held the largest share of 43% of in the base metal mining market in the year 2023. Aluminum is commonly used in various products ranging from kitchen appliances to construction industry owing to its particular properties like resistance to corrosion, lightweight, soft & malleable and highly conductive nature. According to the International Aluminium Institute, the total production of aluminum across the world during the year 2022 was valued at 69,038 thousand metric tonnes, an increase of 2.89% from the production of 3,657 thousand metric tonnes during the previous year. The daily average production of aluminum in 2022 was 189.1 metric tonnes. This is highly driving the aluminum segment in the base metal mining market.

Base Metal Mining Market Segment Analysis – By Type

Mineral processing segment held the largest share in the base metal mining market in the year 2023. Mineral processing is a treatment of crude ores and mineral products in order to segregate the valuable minerals from waste rocks. Various techniques such as bioleaching and hydrometallurgy is used in order to treat the minerals and extract them from the ores. Bioleaching and hydrometallurgy help in making sure that the valuable minerals are carefully extracted without any wastage. Most often the first step that is done after an ore is extracted is mineral processing for retaining the minerals. Therefore, mineral processing segment held the largest share in the base metal mining market.

Base Metal Mining Market Segment Analysis – By End-Use Industry

Building and construction industry held the largest share in the base metal mining market in the year 2023. The increase in demand and use of base metals such as aluminum, copper, zinc and others in building and construction industry is driving the demand for base metal mining market. Furthermore, the increase in a number of activities in the building and construction sector across the globe is highly driving the demand for base metals, which is further contributing to the growth of the base metal mining market. For instance, the cost of expenditure in the construction industry across the world was estimated to reach US$17.5 trillion by the year 2030. This is increasing the demand for base metals in the building and construction industry which is further increasing the growth of the base metal mining market.

Base Metal Mining Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the base metal mining market in the year 2023. The increase in the growth of population in countries like India and China coupled with the countries’ growing dependence on key use industries like building & construction, automotive and electrical & electronics industry is driving the demand for base metals as it is used in various applications of these end use industries. For instance, according to the International Aluminum Institute, China's total aluminum production in 2022 reached 40,430 thousand metric tonnes, representing a 4.1% increase from the previous year's production of 38,837 thousand metric tonnes. Additionally, as reported by the Indian Brand Equity Foundation (IBEF), aluminum production in India reached 3.5 million tonnes in 2023. Global production in August 2023 was recorded at 6.0 million metric tons, reflecting a 1.6% increase compared to August of the previous year. This is driving the demand for base metal mining market in the Asia Pacific region.

Base Metal Mining Market Drivers 

Increasing Demand from Automotive Industry

The increase in demand for copper wires, copper metals / copper cathodes from the automotive industry is highly driving the growth of base metal mining market. The increase in the growth of the automotive industry is influencing the use of metals such as copper, aluminum and others for various applications in the automotive industry is increasing the demand for base metal mining market. The development and advancements in the electric cars industry is also giving rise to the demand for copper cathodes and copper wires as it is extensively used in electric car manufacture. According to International Energy agency, Electric car markets are seeing exponential growth as sales exceeded 10 million in 2022. Additionally, EV sales are expected to continue strongly through 2023. Over 2.3 million electric cars were sold in the first quarter, about 25% more than in the same period last year. The increase in production and sales of electric cars is driving the demand for base metals, which is further increasing the demand for base metal mining market.

The Increasing demand from Electrical and Electronics Industry

The increase in demand for electronic products across the world is one of the major factors driving the growth of base metal mining market. Copper is widely used for wiring in the electrical industry. This is further increasing the demand for base metal such as copper and aluminium in the electrical and electronics industry, which will further drive the base metal mining market. In Jan 2024, The Semiconductor Industry Association (SIA) announced that global semiconductor industry sales totaled $48.0 billion during the month of November 2023, an increase of 5.3% compared to the November 2022 total of $45.6 billion and 2.9% more than the October 2023 total of $46.6 billion. The increase in the sales and production of semiconductors will further increase the demand for base metals like cooper and aluminium. This will further drive the base metal mining market.

Base Metal Mining Market Challenges

Strict Mining laws

There are various law enforcements regarding mining activities across the world which is one of the major challenges to base metal mining market. For an instance, according to the National Environmental Policy Act (NEPA), federal agencies have to prepare an environmental impact statement (EIS) for activities that significantly affect the quality of the human environment. Mining operations will involve an environmental impact statement (EIS) test carried out examining the environmental impacts. Any discrepancy or failure to follow the rules will invite legal actions. Similarly, the Mines & Minerals (Development and Regulation) Act 1957 (MMDR Act) of India also lays down the legal framework and rules for the regulation of mines. Therefore, such legal regulations act as one of the major challenges to the base metal mining market.

Base Metal Mining Market Industry Outlook

Production expansion, investments, acquisitions and mergers, facility expansion collaborations, partnerships, are some of the key strategies adopted by players in the Base Metal Mining Market. Major players in the Base Metal Mining Market are: 

1. BHP
2. Freeport-McMoRan, Inc.
3. Antofagasta Plc
4. Codelco
5. Zijin Mining Group Co., Ltd.
6. Norilsk Nickel
7. Vale
8. Aurubis
9. Glencore
10. Anglo American

Recent Developments

• In July 2023, Vale divested a 13% stake in its base metals unit for $3.4 billion, boosting copper and nickel output for electric vehicle demand. Manara Minerals and Engine No. 1 acquired 10% and 3%, respectively. The $26 billion transactions, aiming to meet future demands, concluded in Q1 2024, pending regulatory approval.

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