Comment: Commodities crunch hitting mines Published on: 11 December 2015 Writing for The Conversation, Dr Natalia Yakovleva scrutinises emerging global trends in the mining industry. , Anglo American, one of the largest mining companies in the world, has announced a restructure that , a reduction of its workforce by almost two-thirds. The move follows a huge downturn in commodities prices, which have been and have hurt the revenues and profits of mining companies across the globe. The global mining industry is capital intensive but has high net profit margins, with . Falls in commodity prices detrimentally affect the bottom line and so the decision of Anglo American to slash its workforce 鈥� though dramatic 鈥� is not altogether surprising. It reflects the global trends across the commodities industry. This will provide no solace to those losing their jobs, however. Lessons from other countries that have experienced that cutbacks will have a profound effect on the workers and communities they are part of. Global trends The fortunes of the mining industry have mirrored those of the global economy. The boom years before the financial crisis in 2008 saw global commodity prices rise rapidly, along with a boom in mining activity. In 2009, commodity prices dipped, only to recover the next year with rise up to 2011. This was largely the result of continued GDP growth in emerging economies, in particular China, which is the primary consumer of mining commodities. China鈥檚 move to a 鈥渘ew normal鈥� economic model that is not fuelled by spending on infrastructure, manufacturing and exports, means its appetite for large volumes of foreign metals and coal . As the , China鈥檚 slowdown is the major cause of the slump in commodities prices in recent years. World metal prices, 2000-2014. World Bank Commodity Markets, 2015
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