Recently, Austmine, the leading industry body for the Australian Mining Equipment, Technology and Services (METS) sector, hosted a webinar showcasing the mining market in the United States. This informative webinar broke down the opportunities in many areas of the American West for mining and how companies from the around the world can take those opportunities.
Jason Nitz, Principal Advisor for Mining Technology and Operations with Newport Mining, provided an overview of the base mining sector in the US, specifically Nevada, and compared the mineral sector in the US with that of Australia.
The webinar also included a panel discussion by three mining experts: Javier Jativa, Deputy Commissioner, North America, Trade and Investment Queensland, Matt Richardson, Senior Corporate Dealer for OFX, and Chris Gibbs Stewart, CEO of Austmine. These panelists discussed market entry strategies, risks, and advice for entering the US mineral market.
Differences Between Australian and American Mining Markets
According to Nitz, the differences between the American and Australian mining markets aren’t as drastic as some think, but there are contrasts that make a large difference overall.
Nitz identified a smaller, concentrated market in the US with gold, silver, and copper, particularly in Nevada, where Nitz has set up several mining operations. While Nevada is known for its silver, the state is actually a large gold producer. 80% of the gold produced in the US is from Nevada. In 2016, the state produced six million ounces.
There are several American regions that produce coal such as Wyoming and Kentucky, however these regions have fallen on hard times with lowered production. Nitz expects this drop-off to continue.
Mining Operations are seeing high retention rates with workers generally staying for long periods of time, which slows organic skill migration. Workers tend to stay at one mine for life, making practices and technologies slow to proliferate.
Mining operations also place a large amount of trust in local businesses like MICROMINE for their support. Because many of these smaller companies providing mining services are so entrenched, it can be difficult to break into this mining sector.
Solutions
In order to forge crucial relationships in the US market, Nitz and his colleagues recommended partnering with local businesses, getting an ‘in’ by offering low or no cost trials. Generally, being present in the community and the region allows for meeting supply chain representatives, key operators, and those supporting and building operational technology. The idea is to think beyond the strictly money-making aspect of breaking into the market and first establish the relationships needed to support successful mining operations.
While innovation can be slow to develop in many American mining companies, there is still an emphasis on improving everything from worksite safety to exploration functions, especially by companies using digital systems to optimize mine operation, such as MICROMINE.
Austmine is running a USA Mining Mission in October to give Australian METS companies an opportunity to see for themselves what mining operations in the United States look like and to make the type of crucial relationships needed to break into this market, especially in the American West.
