Total capital expenditure in the mining industry across 15 different commodities will fall by US$5.4 billion in 2020, primarily driven by a drop in development capex for copper and gold projects. Global capex in the mining industry across 15 commodities will drop by 6.4% year over year in 2020, driven by a decline in development capex.
After an average annual decline of 16.6% from 2013 to 2017, total capital expenditure of the worlds 20 leading mining companies recovered by 16.9%, to reach $50.7 billion in 2018. Based on the latest announcements, it is expected to rise further, by 18.4% in 2019 as the mining sector continues to recover from the slump earlier in the decade.
Globally, Industrial Info Resources is tracking nearly 12,000 mining projects representing total investment value of $1.2 trillion as part of its Global Market Intelligence Platform . These projects involve capital expenditures ranging from grassroot mines to in plant capital at existing operational mines and processing.
Capital expenditure for operating assets forecast to be US$29 million. Investment in exploration and other development capital expenditure forecast to be US$6 million. Proceeds from the sale of Bibiani to be used to reduce debt. CY20 production and preliminary results
As mentioned above, a mining company is entitled to claim 100% of its qualifying capital expenditure as a deduction against its taxable income, subject to two limitations or the so called outer and inner ring fencing provisions, i.e. such capex can only be claimed against income derived from mining operations or so called mining income and secondly where a company operates two or more mines, the capex deduction per mine is to the mining income derived from that mine.
2.6. Mining cost indices 35 2.7. Capital intensity 36 2.8. Cost estimation in mining 38 2.9. Capital cost estimation in open pit mines 39 2.10. Concluding remarks 40 3. METHODOLOGY 42 3.1. Chapter overview 42 3.2. Brief description of the parametric cost estimation methodology 42 3.3. Data utilised 44 3.4. Cost estimation formulae 44 3.5.