Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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According to a November 4 report from Bloomberg, Hitachi Construction Machinery Co (HCME) is to build its third mining equipment factory in Japan as demand for thermal coal rises in Asia. The plant near an eastern port in Ibaraki prefecture is expected to start production in 2013, Senior Vice President Shinichi Mihara said in an interview. The cost of building the factory is being studied and will be part of Hitachi’s three- year $2.4 billion expansion plan. The piece stated that Hitachi is seeking to increase mining revenue as competition in its main construction equipment business intensifies from Chinan, where the government has slowed public works and housing projects to cool the economy. Orders for thermal coal are rising in countries like India, where demand exceeds supply by as much as 14% during peak hours. (more…)
