Mining Policy & Regulation: Review 2017 and Outlook 2018

The mining industry is highly cyclical and fiercely competitive, given to period overcapacity and sharp fluctuations in prices and demand. Weakening global economic conditions have provided a major “headwind” for this sector but the prospects remain attractive. The decision of the Chinese government in reducing the work hours which was started in the coal sector in the 4th quarter of 2016 boosted the recovery of the coal price which continues in 2017. The rally of the coal prices continue triggered by the unusual high rainy season in Indonesia and other coal producing countries and the Debbie cyclone in Australia which affecting the production level. The recovery the commodity becomes the tail wind which boost the performance of miners in 2017. 

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