Trends in Mining Industry Case Study Example | Topics and Well Written Essays - 500 words - 98

Trends in Mining Industry - Case Study Example Aluminum cost is going even lower in China beyond much of other countries. This is due to the funding by the Chinese government which has now reduced competition for the aluminum product from China. Silver and copper are amongst those expected to drop as well, however, this may not be immediate but rather gradual. Diamond and gemstone are the minerals whose mining are expected to experience a boom realizing the largest industry growth in Australia. The mining industry in Australia has experienced a tremendous growth over time and is thus expected to affect a change in the mining industry. However, explorations or mines are in a downturn. There is slush in companies’ exploration budgets. Additionally, there is a plummet of about 30% in the exploration of non-ferrous metals. Thus the focus is shifting away from the exploration of minerals to production. The nursery sector of mining is shrinking due to a rise in troubled small miners. Small miners are experiencing problems due to lack of economies of scale. Costs are likely to careen beyond control due to the resultant pullback in the budgets for exploration threatening to widen the rift between supply and demand. The mining sector is in a decline falling with over 7.5% in 2014. The effects of these challenges have subsequently made companies mothball their projects as well as cap capacity. Therefore only an adoption of new ways of business will break this cycle. Nonetheless, CIBC world Market projects a likely rise in gold at about $US1383 per ounce as silver on the other end is to fall to about $US22.81 per ounce similarly, copper will experience a drop to $US3.17 per pound. A critical evaluation of Dicores customers and Dicores competitors shows the table below using strengths, weakness risks and opportunity (Amin, Razmi, & Zhang, 2011).