Purchasing Trends and Intentions in Asian Mining, 2015

Overall trends in the data revealed: Outright purchase is the most common purchasing method Asian miners are optimistic about future expenditure Challenges in sourcing products are primarily related to supplier attributes and capabilities Asian miners are increasing their levels of procurement centralization.

Scope

The survey is based on responses from 115 senior managers and decision makers at operating Asian mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents came from seven different countries: India, Indonesia, the Philippines, Pakistan, Vietnam, Mongolia and Thailand. This included six different commodity groups and a range of surface and underground mining operations.

Reasons to buy

Compare the methods Asian miners use to acquire equipment, and how this is expected to change.

Plan ahead based on general expectations within the Asian mining industry for future expenditure, and how this varies by segment, such as mine type, commodity and company size.

Understand how different customer segments in Asian mining plan to rationalise or extend their supplier networks.

Identify the major challenges Asian miners face when sourcing equipment, and incorporate solutions to these in your sales, marketing and product strategies.

Companies mentioned

BHP Billiton, Vale

Glencore

Rio Tinto

Anglo American

Vedanta

Caterpillar

Komatsu

L&T

BEML

Tata

Atlas Copco

Volvo

Table of Contents

1 Executive Summary

2 Current Purchasing Preferences

2.1 Purchasing Methods for Heavy Mobile Equipment

2.2 Rental Agreements

3 Future Spending Predictions

3.1 Expected Changes in Expenditure

3.2 Spending Across All Categories to Increase

3.3 Anticipated Changes to the Number of Supplier Relationships

4 Challenges In Sourcing The Right Products

5 Centralisation and Preferred Suppliers

5.1 Changes in Centralization

5.2 Preferred Supplier Arrangements

5.3 Preference for a Dominant Single Supplier

6 Conclusion

7 Appendix I

8 Appendix II

8.1 Survey Background

8.2 Analysis of the Survey Sample

8.3 Equipment Sourced from Main Supplier

9 Appendix III

9.1 Contact GlobalData

9.2 About GlobalData

9.3 Disclaimer

List of Tables

Table 1: Expected Change in Use of Purchase Method in Next Two Years (%), 2014

Table 2: Expected Change in Expenditure by Area in Next 12 Months (%), 2014

Table 3: Changes in the Number of Supplier Relationships Expected in Next 12 Months (%), 2014

List of Figures

Figure 1: Purchasing Methods Used (%), 2014

Figure 2: Other Purchasing Methods used in Combination with Outright Purchase (%), 2014

Figure 3: Other Purchasing Methods used in Combination with Rental (%), 2014

Figure 4: Other Purchasing Methods in Combination with Commercial Hire Purchase

Figure 5: Purchasing Method by Mine Type (%), 2014

Figure 6: Purchasing Method Type by Company Size (%), 2014

Figure 7: Purchasing Method by Geography (%), 2014

Figure 8: Share of Use of Rental Agreements by Company Size (%), 2014

Figure 9: Changes in Expenditure by Category over the Next 12 Months

Figure 10: Increase vs Decrease in Expenditure by Category (%), 2014

Figure 11: Expected Increase in Expenditure by Company Size (%), 2014

Figure 12: Expected Increase in Expenditure by Commodity (%), 2014

Figure 13: Key Commodity Prices, 2010–2014 (Indexed)

Figure 14: Changes in the Number of Supplier Relationships Expected Over the Next 12 Months

Figure 15: Do you Anticipate Switching to a Different Equipment Supplier in the Next Five Years?

Figure 16: Expected Increase in Number of Supplier Relationships by Company Size, 2014

Figure 17: Expected Increase in Number of Supplier Relationships by Commodity, 2014

Figure 18: Biggest Challenges in Sourcing the Right Products, 2014

Figure 19: Biggest Challenges in Sourcing the Right Equipment by Company Size (%), 2014

Figure 20: Changes Expected in Level of Centralization Over the Next Two Years, 2014

Figure 21: Expected Increase in Level of Centralization by Company Size, 2014

Figure 22: Preferred Supplier Arrangement, 2014

Figure 23: Preferred Supplier Arrangement by Type of Purchase, 2014

Figure 25: Preference for Dominant Single Supplier by Company Size (%), 2014

Figure 26: Use of Dominant Single Supplier by Commodity (%), 2014

Figure 27: Survey Respondents by Country (%), 2014

Figure 28: Survey Respondents by Mine Type (%), 2014

Figure 29: Survey Respondents by Commodity (%), 2014

Figure 30: Equipment Supplied by Respondents’ Major Equipment Supplier by Type (%), 2014

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