The cost saving policy of mining companies is ending as well as mining equipment market is improving in 2018. Capital spending for key metal mining companies dropped 64 percent in 2013-2017, according to Bloomberg Intelligence. Investment of the 10 largest metal miners, which account for 70-80 percent of total spending, is projected to grow 12.3 percent in 2018. This is due to the improvement of the global economic growth and the rise in commodity price, according to Bloomberg Intelligence analysts. Nevertheless, the coal mining sector’s expenditure grew 16 percent in 2017, but Chinese major coal firms cut their costs, and the cost may fall 8 percent this year. The company’s chief executive, Jim Ampletebi, predicted that sales of Caterpillar, leading heavy equipment industry company, will continue to grow in 2018. He said “The major economic indicators are positive.”

Source: BloombergTv.mn