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Mining Industry Overview

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Mining Industry Overview
Mining
Industry

Overview

Boyi
Xie

March
5,
2012


Michael
Porter’s
Five
Forces


Outline









Products

Suppliers/Customers

Industry
Compe?tors

Cost

Revenue
&
profit

Overall
trends

Other
factors


Products













Aluminum

Copper

Lead

Zinc

Gold

Silver

Uranium
oxide

Diamonds

Stainless
Steel
Materials

Iron
Ore

Coal


Aluminum


Zinc


Copper


Gold


Iron
ore

Diamond


Marketing
&
Customers

• Marke?ng
centers
of
mining
companies


• Sell
products
at
the
most
advantageous
price
to
make
the
most
of
 their intrinsic
value

• Act
as
a
source
of
specialist
exper?se

• Iden?fy
value
opportuni?es


• Customer
service:


• Technical
assistance

• Transporta?on,
e.g.
BHP
Shipping,
Rio
Tinto
Marine


• Customers


• Jewelry
makers.
E.g.
gold,
silver
and
diamonds

• Manufacturing/construc?on
companies.

• E.g
Hyundai
Steel


• Government

• Other
retailers


BHP
Billiton

• BHP
Billiton
is
a
global
mining,
oil
and
gas
company
headquartered
 in Melbourne,
Australia
and
with
a
major
management
office
in

London,
UK.
It
is
the
world’s
largest
mining
company
measured
by
 revenue. • BHP
Billiton
was
created
in
2001
through
the
merger
of
the

Australian
Broken
Hill
Proprietary
Company
Limited
(BHP)
and
the

Anglo‐Dutch
Billiton
plc.
(Billiton
origins
stretch
back
to
1860)

• It
is
now
a
dual‐listed
company
in
Australian
Securi?es
Exchange
and

London
Stock
Exchange.

• It
operates
a
wide
variety
of
mining
and
processing
opera?ons
in
25
 countries, employing
approximately
41,000
people.

• It
has
opera?ons
on:
aluminum,
diamonds,
iron
ore,
petroleum,
 stainless steel,
uranium,
etc.

• Mines
in:
Algeria,
Australia,
Brazil,
Canada,
South
Africa,
USA


Rio
Tinto

• Rio
Tinto,
now
headquartered
in
London,
UK
(and
Brisbane,

Australia),
was
founded
in
1873,
when
a
mul?na?onal
 consor?um of
investors

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