Global demand for specialized mining machinery and equipment (including separately sold parts) is projected to increase 5.9% per year through 2011 to $33.6 billion. These and other trends are presented in “World Mining Equipment,” a study released by The Freedonia Group Inc., a Cleveland-based industry research firm.

According to the report, advances will be fueled by continued demand for commodities such as iron ore and copper. In addition, the ongoing global thirst for energy will boost global coal output. China and India will be leading sources of mining equipment demand. However, just as important, these nations will continue to fuel demand for mined products throughout the world, thereby providing opportunities for machinery producers.

“China has shown strong growth in mining equipment demand, a direct result of investment in its local mining industry,” the report states. For example, coal output there nearly doubled from 2001 to 2006, reflecting that nation's intense need for energy. China also is a major source of commodities such as iron ore and bauxite. Other major Asia/Pacific markets for mining equipment include Australia and India. Like China, India has experienced major growth in coal output in recent years. Australia, a leading producer of bauxite and iron ore, is a major source of commodities for its developing Asian neighbors.

Demand for mining equipment in Asia is expected to post strong gains, as the region's rising population and industrial output will lead to increased energy and raw material needs, according to the report. Africa will post healthy gains, benefitting from rising demand for precious metals and copper. Growth in demand for mining equipment in Latin America will reflect increased mining investment in nations such as Peru and Chile. Eastern Europe also will post gains, benefitting from upswings in the large Russian market.

“Growth in North America and Western Europe will lag the industry average, reflecting the maturity of these markets,” the report states. “However, the largest producers of mining equipment are generally found in the United States and the industrialized nations of Western Europe. Such countries have a long history and extensive expertise in the development of capital equipment industries of all types, which many have leveraged in mining machinery.”

For more information about this report, contact Corinne Gangloff at (440) 684-9600 or visit www.freedoniagroup.com.