The mining industry undeniably acts as a backbone when it comes to supporting the global economy. Exploring, producing, and processing some essential industrial commodities form the basis of growth for many other sectors.
However, COVID-19 has brought an economic recession - drastically affecting every industrial sector. The forced shutdown has led to a significant drop in revenue globally. But, we do have some winners - who even with the pandemic managed to perform well. Let’s look at the top 5 global mining companies that thrive even in these unprecedented times:
BHP Group Limited
BHP Group Limited is an Anglo-Australian multinational mining company. BHP Group has been able to perform well in the first quarter this fiscal year despite the COVID hit - one of the very few companies to have done so.
At the base of it, BHP is a miner of iron ore and copper. The company is well known as the top producer of key commodities in the world. Not limiting itself to iron ore, other activities carried out by the company include exploration of untapped resources, extraction of commodities, processing the same, and the closure of sites within Australia as well as America.
Rio Tinto Limited
Rio Tinto Limited has been maintaining its position among top global mining companies for quite some time now. This Australian-British company is vividly known for being the largest mining and metals company.
The company has divided its operations into five product groups - minerals, aluminum, copper, diamond, energy, and iron ore. It can keep the costs down by using the latest technologies for mining operations. Ever since the beginning, the company has tried to invest massively in new mining methods. Their primary focus seems to be in reducing the drilling costs while increasing efficiency and insights into mineral exploration.
Glencore is a globally diversified company and one of the largest trader of natural resources in the world. With a global network of about 90 offices in 50 countries, it is indeed a company to keep an eye on.
Glencore was founded in 1970 as a trading company that gradually grew into a significant producer and marketer of resources. At present, the operation includes around 150 mineral and metallurgical, agricultural assets, and oil production.
Vale, a company widely known for being the largest producer of nickel and iron ore in the world. The Brazil-based mining company has been retaining its spot among the top 5 global miners for a fair bit of time.
In addition to mining, Vale is doing remarkable work in logistics, steel-making, and energy. Going ahead, their focus will be on developing a sustainable mining environment while promoting ethics and transparency.
Last but not least is Anglo American, one of the leading companies in the mining industry. The London based company is primarily engaged in the exploration and mining of ferrous metal and precious base metal.
Anglo American is trying to bring a technology revolution, actively working towards a time where no human engagement would be required in mines. That does sound like a very ambitious endeavor, but also something believable - We will be on the lookout!
Mining is a tough business with hurdles coming up every single day. Today, prominent companies have a strong balance sheet, promising resources, and continually intent to reduce the production cost. Our top 5 global picks for 2020 has a unique operational approach. Most of them are constantly investing in advanced technologies to enhance operational capabilities. Even though this list ends here, there still are various other mining companies out there doing a splendid job.