The sixth edition of Mine, the annual report reviewing global trends in the mining industry, says that despite the impact of the downturn, the results for the year to end December 2008 were strong, but operating costs continue to erode profit margins which presents a tough road ahead, requiring companies to control costs and be flexible. This report provides a comprehensive analysis of the financial performance and position of the global mining industry as represented by the largest Top 40 mining companies by market capitalisation.
Last year PricewaterhouseCoopers posed the question whether it was “as good as it gets?” This year started where 2007 left off and threatened to answer the question with a resounding “no.” Companies in the industry benefitted from strong commodity prices. Despite the strong financial results, 2008 was definitely a year of two parts with the good times quickly turning bad as the global economic crisis took hold in the last quarter and commodity prices went into freefall.

Jason Burkitt, UK Mining Leader, PricewaterhouseCoopers, comments: “We have witnessed a unique deal environment that has reshaped much of the sector’s ownership. The rapidity of commodity and equity price falls, combined with the immense financing constraints stemming from the financial crisis, has left the sector polarised between the strong and the weak.”