Base Metal Mining Market Size, Share & Trends Analysis Report By Product (Aluminum, Copper, Zinc, Lead), End Use (Construction, Automotive), By Region, And Segment Forecasts, 2020 - 2025

Industry Insights

The global base metal mining market size was valued USD 336.3 billion in 2019 and is expected to register a CAGR of 4.1% from 2020 to 2025. Increasing demand for base metals from construction, electrical and electronics, and automotive sector is projected to remain a key growth driver.

Growth of residential and non-residential construction sectors in Southeast Asia and other developing countries is projected to drive the demand for aluminum and copper products. Furthermore, emergence of electric vehicles and other commercial vehicles is expected to contribute to the demand. Automotive manufacturers are focusing on lightweight vehicles to abide by the emission regulations. This factor is anticipated to bode well for the growth in the near future.

The growth of the electronics and electrical segment is a key market driver. Metals such as copper, aluminum, zinc, and lead find wide application in the electrical and electronics industry. Demand from sectors such as electronic utilities, consumer electronics, and general electronics has witnessed a rise since the last decade.

Various copper products find significant application in day to day life. Copper’s aesthetic, chemical, and physical properties make it a useful material in various industrial, domestic, and high technology applications. After alloying with other metals such as tin, aluminum, or zinc, it can be used in highly specialized applications. Copper exhibits antimicrobial properties and is recyclable and energy efficient.

In terms of revenue, copper held the largest market share in 2018. Global demand for copper is anticipated to witness a rise in the forthcoming years owing to growing infrastructure and automotive sectors.

Base Metal Mining Market Trends

Growth of the construction sector in the developing countries of Asia Pacific is a key driver of the base metal mining market. Building & construction sector in Asia Pacific is largely driven by the developing countries of the region including China, India, Malaysia, and Indonesia, among others. For instance, in 2018, the residential and non-residential sector in Malaysia observed a growth of nearly 4.4%. Similarly, Indonesian building sector registered a healthy growth of nearly 6.2% during the same timeline.

Also, the increased penetration of electric vehicles is expected to contribute to demand. Automotive manufacturing is driven by lightweighting in order to abide by emission regulations. This is anticipated to drive base metal mining growth during the forecast period.

The rising popularity of green buildings is anticipated to create higher demand for base metals over the forecast period. Base metals such as copper is widely used in construction. Its thermal and energy efficiency, and recyclability make copper a sustainable material for green building applications.

The increasing demand from electronics and electrical end-use industry is another driver. There has been increasing demand from sectors such as consumer electronics, electronic utilities, and general electronics during the historic period.

The depletion of non-renewable resources and the presence of limited reserves are the key challenges being faced by countries globally. Large-scale mining activities along with improper waste disposal have resulted in the increased levels of impurity in the air and water. The high volume of solid waste generated during various stages of mining is one of the main concerns lingering around the mining sector. The removal of waste material in order to access the ore creates a major problem during storage and reclamation.

Mineral deposits containing sulfides, when mined, have the potential to produce acid mine drainage. Exposure to water and oxygen results in the formation of sulfuric acid. Acid mine drainage has the potential to decrease the quality of water by lowering the pH and dissolved metal content of groundwater. Mining activity affects humans, wildlife and marine life. These factors are likely to restrain the market growth of base metal mining over the forecast period.

Product Insights

In terms of volume, nickel is projected to register the highest CAGR of 4.4% during forecast period. Nickel has the highest use in the production of stainless steel. The types of stainless steel such as ferritic, austenitic, and martensitic require nickel to be added in various proportions during their production.

Growth of the automotive industry is indirectly projected to drive the demand for nickel over the forecast period. Electric vehicles sector is a promising area for the application of nickel, and the growth of the sector is projected to boost the demand for nickel in the forthcoming years.

Zinc is anticipated to showcase high growth due to demand from galvanization industry. Zinc is primarily used for galvanization of steel in the automotive and construction sectors. It is also used in the production of bronze, brass, zinc-based alloys, and chemicals. Oxides and chemicals of zinc find use in tires, paints, and medical products. It is also used in die-casting alloys and semi-manufactured products.

End-Use Insights

Construction accounted for a revenue share in 2018. Copper is widely utilized in building and construction, interior design, and architecture applications. Properties, such as corrosion resistance, durability, and low maintenance, make it a suitable material for use in applications such as in-wall cladding, roofs, spires, domes, gutters, flashings, downspouts, and expansion joints.

The emergence of green buildings is projected to create opportunities for the use of copper products over the next seven years. Recyclability, long life, and thermal and energy efficiency make copper a sustainable material for green building application. High electrical conductivity of copper helps improve energy efficiency of fans, motors, lighting, and appliances.

The automotive segment is expected to witness a CAGR of 3.3%, in terms of volume from 2019 to 2025. Automotive is one of the primary industries for aluminum and copper. As per the Aluminum Association, aluminum content to account around 16% of total weight of vehicle by 2028. The components such as hoods, doors, bumpers, and crash boxes are projected to observe higher penetration of aluminum in the forthcoming years.

Regional Insights

Asia Pacific accounted for the highest market share in terms of revenue in 2019. This is mainly attributed to the capacity expansion in the electronics segment. Automakers are likely to witness increasing competition on account of the moderate increase in vehicle demand. Despite the volatility in prices, the metals and mining sector is anticipated to witness growth owing to hedging practices and attractive metal prices during the short-term period.

Moreover, the construction sector such as in Indonesia contributed largely to base metal mining growth in the region. It largely attributed its growth to continuous support schemes offered by the government. For instance, in 2016, Indonesia’s central bank scrapped 15% minimum mortgage down payment scheme and relaxed its rule for loan disbursements to encourage first-time homebuyers. Owing to such government incentives, Asia Pacific is likely to witness stable growth in its building sector thereby driving the demand for base mining metal over the forecast period.

Central and South America (CSA) is expected to witness high growth in base metal mining demand. Its automobile sector is anticipated to display growth owing to the availability of credit finance, lower bank interest rates for consumers, and better economic stability.

Brazil is the largest automotive market in the region and also accounts for the highest share of base metal mining demand in CSA. It witnessed automobile production growth of 25.2% from 2016 to 2017, as per statistics published by OICA. The election of a new president in the country in 2018 is expected to positively influence the growth of the mining sector, which has observed a significant decline over the past few years owing to mining fatalities and environmental disasters between 2016 to 2018. The new government is working on regulations for mining on indigenous lands, and this in turn is projected to develop new mining projects.

Key Companies & Market Share Insights

The global market is led by multinational players with base metal mining projects in several countries. Key participants include BHP; Freeport-McMoRan, Inc.; Antofagasta PLC; CODELCO; Zijin Mining Group Co., Ltd.; Norilsk Nickel; Vale; Glencore; Aurubis; and Anglo American.

Key players are collaborating with mid-tier or major miners to identify operating strategies and to leverage mining infrastructure. Many investors are focusing on the prices of copper as they have been registering an increase since recent years. In September 2017, First Quantum Minerals signed a deal with LS-Nikko Copper to acquire Korea-based Minera Panama. This will help First Quantum Minerals to boost the production of copper and related products.

Base Metal Mining Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global base metal mining market report on the basis of product, end use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Aluminum

  • Copper

  • Lead

  • Nickel

  • Zinc

  • Others

• End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Construction

  • Automotive

  • Electrical & Electronics

  • Consumer Products

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Norway

    • Russia

  • Asia Pacific

    • China

    • India

    • Australia

    • Indonesia

    • Philippines

  • Central & South America

    • Brazil

    • Chile

    • Peru

  • Middle East & Africa

    • Bahrain

    • UAE