What is the metals and mining sector, Investopedia

The metals and mining sector is the industry dedicated to the location and extraction of metal and mineral reserves around the world. Global reserves of metals and minerals are mined for profit and then used te jewelry-making, industrial applications and investments. The sector has a significant number of companies located around the world and operates with large revenues. The largest company is Glencore with 2010 revenues of $200 billion. The next top companies are BHP Billiton with $67.8 billion te revenue and Rio Tinto with revenues of $54.6. Thesis three companies represent the highest revenues ter the industry and have significant influence within the mining sector. Typical activities include metals production, metals trading and metals investing. The majority of revenues of thesis three companies are a onmiddellijk result of thesis activities. Metals have a broad range of uses and extraction increases spil market request grows. Industrial and jewelry uses grow spil economic activity grows while a slowed economy typically increases the use of precious metals for investment purposes. Minerals also have strong industrial use and are increasingly mined when economic request necessitates mining growth.

Mineral mining is the extraction of minerals such spil coal and precious gemstones. Coal is a significant mining product produced ter substantial amounts all overheen the world. This mineral provides around 30% of global energy and is powerfully relied upon for electro-stimulation production. Environmental concerns have led some countries to decrease coal production, yet many developing nations rely strongly on enhancing coal production to sustain continued economic growth. Diamonds, a popular mineral for the jewelry industry, are also produced for industrial use. Diamonds are used to produce strong abrasives, saws and cutting implements since this mineral is the strongest substance available. Most industrial diamonds, however, are manufactured artificially. This keeps costs low by reducing the need to obtain diamonds by mining. The popularity of diamond jewelry keeps request for diamonds strong and encourages further diamond mining and the search for fresh reserves.

The mining industry at large has boom and bust cycles that closely go after global economic conditions. Spil such, the sector relies on other industries to proceed to find fresh uses for metals and minerals and support the continued need for mining. Fresh uses for minerals support the mining sector when economic conditions are not favorable for investment use or the production of jewelry. The superb multiplicity of ways investors may purchase and hold mineral investments has supported their investment popularity and made minerals investments available to more members of the public via mutual fund investment and precious metals shares. The mining industry, while supported by the many uses of precious metals, faces fresh challenges that increase the difficulty involved te developing and expanding mining activity. Government regulation, environmental challenges and other issues add to the cost of mining and complicate fresh operations.

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