US Mining Industry

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US Mining Industry

The mining industry in the US is expected to have modest growth with the exception of coal mining. Green mining and smart mining will experience healthy growth. Diesel is the most used fuel in the industry, followed by electricity.

COVID's Current Effect the Industry

    • The mining sector is tied to commodity prices. There is currently curtailed activity around the globe. This has resulted in a "free-fall" of commodity prices that are significantly reducing revenue. It is very likely that the markets will change significantly in the coming months.

Mining Market Sizes

Locating the exact market size has proven to be difficult due to the immense size of the market and the many different forms of mining that fall under the umbrella of this industry. Additionally, many exact figures were hidden behind paywalls. Growth in the industry will be from base metals and industrial minerals and metals.

US Mining Industry Market Size

  • The US Mining market size in estimated to be $642.5 billion in 2020.
  • In 2020, the market has an expected CAGR of 9.3%.
  • The market growth from 2015-2020 was 7.6%.
  • In the US, mining has a direct economic impact of about $700 billion annually, or around 3% of the GDP.
  • Mining takes place in all 50 states.
The US mining market is broken down further into multiple markets: coal, base metals, industrial metals, and industrial minerals such as potash, limestone, and other crushed rocks. There were no market reports specifically for industrial minerals. It is assumed they are lumped in with industrial metals, but it was not specifically stated.

US Coal Market Size & Growth

  • The coal mining market size is predicted to be $22.8 billion in 2020 due to a 7% drop in growth.
  • Operators in this industry mine various types of coal both above and underground. Most coal mines are for bituminous coal or anthracite.
  • From 2015-2020, the market experiences a 6.1% drop in growth.
  • The US produces the third most amount of coal globally, behind India and China. Coal production in the US reduced by 3% in 2019 to 729 million tons.
  • The US coal mining market declined faster than the mining sector overall.
  • Worldwide, the industry is expected to grow at a CAGR of 2.8% to $32.3 billion through 2022, largely due to China and India.
  • Many coal mines have either shut down or are idle. It is estimated that US coal exports will decrease through 2020. Coal consumption, which is related close to electricity demand, is trending downward, along with coal production. In 2018, the US produced 755.5 million short tons of coal. In 2021, it is predicted that only 589.1 million short tons will be produced.
  • The deregulation of electricity generation and supply will have a negative effect on the market, as will consolidation of the railway industry. Railways are the major carriers of coal and are a key factor in determining the price. The furthering consolidation of the railway industry will most likely reduce competition for competitive railway pricing.
  • Ongoing environmental concerns will also negatively affect the market. In the past decade, over 500 coal-fired power units for electricity have been retired, or announced their retirement. Further, it is estimated that over 85% of existing coal plants will be uneconomic compared to local renewables by 2025.
  • "Unless something really dramatic happens" to hurt the natural gas sector, coal is not expected to make a comeback any time soon, Wood Mackenzie Research Director of North American Coal Markets Matt Preston stated.

US Base Metal Market Size & Growth

  • The US base metal market size was $15.09 billion in 2014, then fell to $12.81 in 2015. By using the global estimate of a 4.1% CAGR, we can assume that the base metal market size can be roughly estimated to be $19 billion in 2025. This figure was obtained with the use of a CAGR calculator.
  • The global base metal market size was valued at $328 billion in 2018.
  • It is expected to enjoy a CAGR of 4.1% from 2019-2025.
  • Gold ($170 billion), aluminum ($165 billion), copper ($155 billion), iron ore ($137 billion), zinc ($49billion), manganese ($40 billion), and lead ($30 billion) have the largest market size of base minerals worldwide.
  • Nickel is expected to register the highest growth with a CAGR of 4.4% due to its use in stainless steel and electric vehicles. Zinc is also expected to show high growth due to the demand from the galvanization industry.
  • Construction accounted for 39.9% of total revenue in 2018, and is a driver in the industry.
  • The growth of the electronics and electrical segment will be a key driver in the market.

US Industrial Metals Market Size & Growth

  • The industry has grown at a CAGR of 2.3% for the last three years (2016-2019).
  • In 2019, sales were over $4.8 billion. The averages sales per company was $16.3 million.
  • We can roughly estimate this market by applying the 2.3.% CAGR for the last three years to the 2019 sales, if we make the assumption that the market will hold at this growth level. This is not the most accurate way to estimate growth but exact numbers were hidden behind paywalls. The 2.3% is used as a proxy, as it is the only CAGR for the market that is publicly available and is the current growth rate. Using these figures, we can estimate the market will be worth $5.5 billion in 2025.
  • No drivers were located for this market.

Additional Market Information

  • Global Green Mining is expected to grow from $9.7 billion in 2020 to $12.9 billion in 2024, a 7.39% CAGR.
  • Global Smart Mining is expected to grow from $6.8 billion in 2019 to $20.31 billion in 2025, a 20.01% CAGR.
  • The global mining equipment market size was valued at $144.37 billion and is expected to grow at an annual CAGR of 12.7% from 2020-2027. The US mining equipment market size was $21 billion in 2017 and is expected to be near $69 billion in 2027.

Fuels Used in Mining

  • As predicted in the initial findings, diesel is the most used fuel.
  • Grinding accounts for 40% of energy use in the mining industry, followed by material handling equipment- diesel (17%), ventilation (10%), ancillary operations (6%), digging (6%), drilling (5%), separations (4%), crushing (4%), materials handling- electric (4%), blasting (2%), and dewatering (2%).


  • 34% of the fuels consumed in mining is in the form of diesel.
  • The mining industry uses $7 billion worth of diesel powered equipment. Diesel powered shovels and drills excavate and load resources into mining trucks or onto conveyor belts.
  • Diesel generators are also very important to the mining industry. They account for approximately 72% of the energy used to run the different facets of the mining industry.
  • Dump trucks, loaders, bulldozers, and various other trucks all use diesel fuel.


  • 32% of the fuels consumed in mining is in the form of electricity.
  • Electricity is used for the power components in drills.
  • Longwall machines are powered with electricity.

Natural Gas

  • 22% of the fuels consumed in mining is in the form of natural gas.


  • 10% of the fuels consumed in mining is in the form of coal.
  • Coal is used to produce power for mining.


  • 2% of the fuels consumed in mining is in the form of gasoline.

Mining Equipment

  • The equipment used in mining and what it is used for has been entered into the attached spreadsheet.