by The surface mining market involves the process of extracting minerals, ores or coal by removing the overlying bedrock and soil. This includes open-pit mining and strip mining methods where large earth-moving equipment such as dump trucks, excavators and draglines are used to extract minerals close to the ground level. The rising need for coal in power plants, cement production and metallurgical industries has largely contributed to the Surface Mining Market Demand.
Global surface mining market is estimated to be valued at US$ 55.03 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the surface mining market include BHP, Rio Tinto, Vale, Glencore, CRH PLC among others. Surface mining provides cost-effective and efficient mineral extraction compared to underground mining techniques. Key players are focusing on capacity expansion and acquisitions to meet the growing coal demand globally. The growing demand for electricity and industrial development in emerging economies have significantly boosted coal consumption. Surface mining allows for large-scale, low-cost extraction of coal reserves to meet energy requirements. Countries like China, India and Indonesia are witnessing rapid growth in coal-fired power plants development which is propelling the surface mining market size.
Market Drivers
Rising energy demand across various industries is a key driver augmenting the surface mining market revenue. According to the IEA, global energy demand is estimated to rise by over 25% between 2018 and 2040, with fossil fuels meeting nearly 80% of the growth. This rising need for conventional and affordable energy sources like coal is propelling mining companies to boost surface coal mining activities. Moreover, urbanization and industrialization trends in developing nations are also fueling the demand for cheaper electric power, construction materials and metals, which is significantly driving the surface mining market share.
The current geopolitical instabilities are impacting the growth of the surface mining market
Regions like Eastern Europe and parts of Asia Pacific that have strategic natural resources are witnessing heightened geopolitical tensions. The ongoing conflict between Ukraine and Russia has disrupted coal and metal supplies from these regions. As Ukraine and Russia account for nearly 30% of the global steel production, this supply chain disruption is expected to push up metal prices globally in the coming years. While high commodity prices may boost demand for surface mining in the short-term, prolonged geopolitical issues will create challenges for mining companies to operate across borders. They will need to diversify supply sources and establish operations in politically stable regions to mitigate supply risks. Given the energy crisis in Europe post the conflict, there is also a shift towards tapping domestic resources through increased surface mining. However, attracting investments in exposed territories will remain challenging.
North America accounts for the largest share of the surface mining market in terms of value. Abundant coal reserves in countries like the US and Canada along with established mining industry and supporting infrastructure has made North America a strategic hub. Surface mining provides ease of access to sizable coal seams near the ground level. This has supported the growth of cost-effective strip and open-pit mining methods. The Asia Pacific region excluding China is expected to record the fastest CAGR during the forecast period on account of upcoming mining projects and export demand from China and other Asian economies. Countries like Indonesia and Australia are boosting coal and metal mining through concessions to multinationals on attractive terms. This is propelling the adoption of surface mining techniques for extracting coal and other bulk minerals.
The geopolitical turbulence in Eastern Europe and parts of Asia Pacific poses short to medium term challenges for the growth of the surface mining market. While countries are likely to take measures to secure critical mineral supplies domestically, long term investments in exposed territories may remain constrained. North America leads the surface mining market in value terms backed by abundant coal reserves and industry maturity. Meanwhile, the Asia Pacific region excluding China is anticipated to emerge as the fastest expanding market, driven by upcoming mining projects and regional demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
