BMI View: Germany's coal sector is one of the largest in Europe and is the main driver of mining activity in the country.
|e/f = BMI estimate/forecast. Source: Eurostat, BMI|
|Mining Industry Value, USDbn||4.70||4.20||4.01||4.09||4.24||4.39||4.50|
|Mining Industry Value, USDbn, % y-o-y||-14.14||-10.65||-4.63||2.01||3.81||3.45||2.40|
Latest Developments & Structural Trends
Germany's mining sector is heavily focused around coal mining, with the country currently the largest producer of lignite, or brown coal, in the EU and boasting the eight highest annual output in global terms. Located primarily in the Rhineland region in Western Germany, the lignite mining industry remains a major employer. The industry's lobbying efforts and its obvious important to local employment have so far helped coal miners to withstand pressure from regional government and environmental groups to scale down their activities.
On March 1, 2016, Germany's energy and mining union IG BCE, which represents about 650,000 workers within the country's mining, power and chemicals sector, stated the intention to negotiate with the government on the future of the most-polluting coal-fired power plants.
The German government stated that it will reduce domestic excess steel capacity by 100-150mn tonnes (mnt) over the coming years. According to discussion document's, on the government's website, Germany will attempt to phase out lignite from 2030 onwards.
We forecast the country's total coal production to increase by 0.50% y-o-y in 2016 to 2013mnt. We expect growth to increase slightly over the medium-term in line with increased economic output and hence demand for energy provision. Growth will average 0.5% y-o-y over 2016-2020, reaching 205.9mnt by the end of the period.
The Germany Mining Report has been researched at source and features BMI Research's mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's Germany Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Germany.
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BMI Industry View
Summary of BMI’s key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the mining sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
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Comparative company analyses and tables detailing USD sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
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