Nonmetallic Mineral Mining & Quarrying

Nonmetallic Mineral Mining & Quarrying

Brief Excerpt from Industry Overview Chapter:

Companies in this industry develop mine sites, mine and quarry nonmetallic minerals and provide related support services, and separate minerals from waste. Major nonmetallic mining companies include Martin Marietta and Vulcan Materials (both based in the US), along with DeBeers (South Africa) and HeidelbergCement and K+S (both based in Germany).

COMPETITIVE LANDSCAPE

Demand is driven by construction spending and spending on fertilizers. Large companies have some economies of scale in purchasing and administrative systems, and have the production volume to supply large construction projects, such as new highways. Small companies typically own just one mine and compete in a local market based on superior customer service. The US industry is concentrated: the top 50 companies account for about 55% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products for the industry in the US include crushed and broken limestone (about 30% of industry revenue), construction sand and gravel (about 20%), crushed and broken granite, and crushed and broken stone (about 10% each). Other products include phosphate rock, kaolin, and ball clay. Phosphates and potassium salts are used to make fertilizers. Crushed stone, sand, and gravel are also referred to as aggregates.