From 2000 to 2023, metals and mining revenues grew by $1.7 trillion, a jump of roughly 75% and affording the industry a 70% slice of the overall materials business which also includes plastics, pulp, and building materials. As a whole, materials represent some 7% of the global GDP.
Profits in the industry have also been robust with mining, refining and metal fabrication EBITDA nearly doubling over the almost quarter century going from $500 billion to $900 billion.
Moreover, Mckinsey points out, mining and metal companies’ debt burden has decreased with net debt over EBITDA ratios of 1.3 times, well below the through-cycle average of 1.8 times.
“However, 2024 has already proven to be a more challenging year for the industry as overall economic growth slows down and the shift toward low-carbon technologies unfolds more slowly than expected, both of which are putting downward pressure on price levels, especially for…
