METS Industry and International Economy
Although mining is one of the first economic activities to be exploited around the world, the industry continues to grow even today.
The METS (Mining Equipment, Technology and Services) Industry boost world’s economic growth in billions per year.
METS is na anagram used to refer to the industry of equipments, technologys and services devoted to mineral extraction.
The high growth of mineral extraction industry on the last decade opened space for the development of new technologies. In order to attend the demands of innovation and security METS emerged, strongly present in Australia.
The australian METS Ignited organization was founded in 2016 with government assistance, which seeks to boost competitiveness and productivity in the country’s mineral extraction sector.
The organization states that untill today the employment rate in the sector continues to grow, gross value added (GVA) has doubled and the country remains the world leader in the METS sector, with Queensland being the biggest mining region with revenues over US$7 billion.
In the mining scenario, the countries that stand out today are Brazil, Australia, Indonesia, Chile, Canada and the United States.
These countries present great opportunities for the consolidation of companies in the METS industry, for presenting large mineral reserves and being some of the largest global exporters of ores, not to mention the development of a national chain of services and technologies to serve the segment.
Brazil and the mineral extraction
Brazil started its mining activities around the XVII century and until today the activity represents a significant portion of the brazilian GDP.
Mineral extraction activities go beyond the processing of metals such as gold, iron and copper.
Through this activities are extracted ores used in the production of fertilizers, cement, microelectronic components and even in the generation of electricity.
According to IBRAM (Brazilian Institute of Mining), in 2021 the extraction of ores had an increase of 7% in compared to the previous year, being extracted around 1,150 billion tons of ores.
As an example, the country is the largest extractor of iron ore in the world, with the company Vale holding 90% of the extraction.
The Impacts of COVID-19 in METS industry
The COVID-19 pandemic impacted directly on the international mining market, due to the lockdowns and severe economic restrictions at that time.
Coal and copper imports falled drasticaly and South America was the world’s most affected region.
The import restrictions announced by China directly impacted the marketing prices of mineral coal, reaching an average of US$123/t during 2020.
Similarly to the case of mineral coal, copper showed a devaluation in the commercialization value due to the 463 kt excess of ore stock.
Brazil had also suffered the impacts on mineral market.
With China being the biggest buyer of brazilian ores, the iron ore extraction and processing sector presented a large decrease in commercialization due to the lack of brazilian supplies and chinese restrictive offloading measures.
In 2022, the mining industry is expected to recover from the impacts suffered by the pandemic.
The sector of services and mining support equipment should have an even more pronounced improvement this year, exceeding expectations and being able to leverage the mining industry in the coming years.
Dynamox participates in the METS sector by developing technologies and services applicable to the monitoring of mining assets, which aims to provide predictability and reliability in asset maintenance.
Dynamox offers a complete solution for remote sensing and analysis of vibration and temperature data allied to predictive maintenance.
Learn more about the DynaPredict Solution.