Parker Bay at MINExpo 2012 (October 3, 2012)
The Parker Bay Company would like to thank everyone who stopped by our booth at MINExpo 2012 which took place in Las Vegas from September 24-26. We had a chance to meet with many current and prospective clients and discuss the data, analysis and related market intelligence services we provide to help you better understand the mining equipment market.
Parker Bay’s Mobile Mining Equipment Database details the who, what, when and where of the more than 20,000 large machines sold since the last MINExpo. And when MINExpo 2016 rolls around, you’ll also know where the next 20,000 machines were delivered, mine-by-mine, machine-by-machine; the ones on display this year and others not yet introduced.
Parker Bay Exhibiting at MINExpo 2012 (September 15, 2012)
For the first time ever, The Parker Bay Company will have an exhibit at MINExpo 2012 in Las Vegas. We invite you to visit us at Booth 23187 in South Hall 4. The main purpose of our exhibit is to give our existing and potential clients an opportunity to meet with us face-to-face and discuss the ways we might be able to assist you to better evaluate the markets for the machines on the floor, the manufacturers that supply them, and the mines that employ them.
Surface Mining Equipment Market Down 5% in the Second Quarter (August 10, 2012)
After four consecutive quarters of record highs, the surface mining equipment market was down 5% in Q2. And with sharper declines for some of the smaller machines, units shipped actually fell closer to 8%. Whether this is the start of a more pronounced and extended correction remains to be seen. But despite the decline, this was still the second strongest quarter ever for surface mining equipment deliveries, up 26% year over year and slightly above Q4 2011.
Surface Mining Equipment Index from Parker Bay (April 20, 2012)
The Parker Bay Company has launched a quarterly index tracking the evolution of surface mining equipment shipments worldwide. The index will be published at the beginning of the second month following the close of each quarter with updates for Q1 2012 due in a few weeks time. Mining equipment shipments in the fourth quarter of 2011 reached a new historical high for the third consecutive quarter. The previous record was set in the final quarter of 2008 immediately preceding the downturn. The most recent figures are up 40% YoY and more than 150% since the market bottomed-out in the third quarter of 2009. This continues the sharp return to growth for the mining equipment market with only one negative quarter among the last 9. And even that one is attributable more to seasonal variation than an actual downtick in equipment demand.
Visit the Surface Mining Equipment Index page for more information on the evolution of mining equipment shipments through year-end 2011.
Mining Equipment Deliveries Back to Peak Levels (January 20, 2012)
As 4th quarter shipments reports are processed, 2011 mining equipment deliveries appear to have returned to and even surpassed 2008 levels with some product lines reaching new record highs. This culminates a swift two-year recovery for the industry after the sharp downturn in 2009.
Final data for 2011 from Parker Bay’s Mobile Mining Equipment Database service will be available the first week of February.
Caterpillar – Bucyrus: A ‘Done Deal’. Now What? (July 8, 2011)
Having received the last required regulatory approval – from the Chinese Commerce Agency on July 8th — Caterpillar wasted little time completing the acquisition of Bucyrus International, bringing together two of the strongest and highly complementary product lines in the mining equipment industry. The “Bucyrus” name will give way to an all-“Caterpillar” branding, and Bucyrus’ direct product support organization will give way to Caterpillar’s highly-regarded network of independent dealers who might find servicing a 6,500-ton dragline a new and challenging experience. But there’s little doubt that the combined entity changes the mining equipment supply landscape and competitors may be plotting their responses. Joy Global’s P&H Mining Equipment recently announced the acquisition of LeTourneau and its storied wheel loader line, which may well have been prompted by a perceived need to ‘get bigger’ to better compete. Further industry consolidation or joint ventures may be in the offing.
Parker Bay’s Mobile Mining Equipment Database service offers a unique way to evaluate this game-changing merger as well as opportunities for further consolidation.
Coal Mines join the parade of acquisition targets (June 14, 2011)
As commodity prices soared and mining activities picked up to meet growing demand from emerging economies (i.e., China, India, Brazil), mining companies or individual mines have become increasingly attractive acquisition targets. While metal miners have been the predominant targets thus far, recent bids highlight a growing interest in coal mining: Rio Tinto’s US$4 billion purchase of controlling interest in Riverside and its high-potential Mozambique developments; Alpha Natural Resources US$7 billion takeover of troubled but high volume met coal producer Massey Energy (U.S.); Arch Coal’s US$3.4 billion bid for ICG (U.S.); even several smaller mergers like Gloucester’s US$400 MM bid for Donaldson. But there are plenty of available targets. Parker Bay’s Database identifies over 400 surface coal mines producing 2.2 billion tons annually and utilizing over 20,000 pieces of large mobile equipment valued at nearly US$60 billion. The ten largest producers – Alpha, Anglo American, Arch, BHP Billiton, China Coal/Pingshuo, Cerrejon, Coal India, Peabody, Rio Tinto and Xstrata – control less than a third of these operations (with nearly 8,000 machines in place), leaving ample opportunity for coal miners of varying size to get bigger in a hurry.
Mining Equipment Market Recovering from 2009 Downturn (April 5, 2011)
It’s not exactly news to the companies involved in selling or buying the large mobile equipment used in the largest surface mines, but the 2010 shipments data now available from Parker Bay confirm what’s been happening over the past year. Shipments of mining trucks, shovels, loaders, draglines, drills and dozers declined by roughly one-third between 2008 and 2009. The recovery was slow early in 2010 but accelerated through year-end as mining companies translated sharply higher CapEx budgets into machine orders. A good example of this: shipments of large mining trucks (90-metric ton payload and above) declined from nearly 3,200 units in 2008 to just over 2,000 deliveries in 2009. The total for 2010 was up by more than 25% but still nearly 20% below the 2008 peak shipments. However, fourth quarter delivers were within a few percentage points of record levels. All the details for the truck market and other major surface mining equipment are available through Parker Bay’s Mobile Mining Equipment Database service.
Mergers transforming mining industry a few billion at at time (February 6, 2011)
After several transformative mergers failed in 2010 – BHP Billiton/Potash Corp., Xstrata/Anglo; BHPB/Rio’s Western Australian Iron Mine Combination — it appears a new and rapidly developing round of mining mergers in 2011, all valued under $10 billion, are changing the industry landscape in smaller but substantive steps. Cliffs takeover of Consolidated Thompson (US$5 Bil); American Natural Resources acquisition of troubled Massey Energy (US$7 Bil.); the Inmet/Lundin ‘merger of equals’ (US$9 Bil); Kinross’s US$7 Bil. takeover of Redback; and Rothschild-backed Vallas’ US$3 Bil. combination of Bumi and Berau Coal: All will have significant effects on specific geographic and mineral market segments. More to come?
Caterpillar / Bucyrus announce US$8.6 billion merger (Nov. 15, 2010)
How will it affect the mining and mining equipment industries? Data and analysis from Parker Bay can help answer some of the questions this industry-changing combination raises whether you’re a miner, an industry supplier, or an investor.
What happened? What’s going to happen? (March 2009)
As 2008 began, I wrote on this web site: “There are some signs of difficulty in various sectors of the mining and large earthmoving equipment industries but even stronger indications that these closely linked businesses will continue to build on the successes and strong performances of the past four years.” Right. And Wrong.
By many measures, 2008 was a very good year for this industry. For at least nine months, mineral output, profits, capital expenditures, and large equipment purchases and deliveries continued as if nothing bad could happen. Then it did. A global financial crisis began to escalate… read more