Background
Mining pertains to the process of extracting useful materials from the Earth. Some of the examples of substances that are mined include iron and gold ores, as well as coal. Iron ore is the material used in producing metal iron. Mining has existed since the prehistoric era. Flint was first mined by prehistoric people because it splits into shards with sharp edges, making it perfect for tools and weapons. [1]
The valuable natural resources that are mined from the ground are called minerals. A mineral is typically an inorganic material with a particular chemical make-up and crystal structure. Although minerals are precious when they are pure, on earth, they are combined with undesirable rocks and minerals. The mixture of rock and minerals is often transported from the mine combined, where it is then processed and refined to remove the desired mineral.
Modern mining has two major categories, which are surface mining and underground mining. In surface mining, the ground is blasted in order to separate the ores that are close to the Earth’s surface and transport them to refineries to extract the minerals. However, it can be destructive to the surrounding landscape as it leaves huge open pits behind. Underground mining, on the other hand, is done by removing ores from deep within the earth. Tunnels are blasted by miners into the rock to reach the ore deposits. The downside of this is that it can lead to accidents that trap miners underground. [1]
Many of the materials we use on a daily basis come from mining, including those used in buildings, fertilizer for crops, satellites, computers, highways, hospitals, and automobiles. A few examples of the mined resources that support mining businesses’ bottom lines are aluminum, phosphate, rare earth metals, copper, iron, and rare earth elements. [2]
The mining industry is among the biggest worldwide. With this, have you ever wondered what companies are at the top in the mining world? If you have the same question in mind, we are here to help you. In this post, we are giving you a ranking of the ten largest mining companies in the world.
The 10 Largest Mining Companies in the World
Take a look at the infographic below to see the world’s top mining companies by market capitalization.
The two biggest mining companies by market capitalization, Rio Tinto ($132B) and BHP ($179B), both produce a variety of commodities, mostly iron ore and copper. The next on the list and largest business in Brazil is Vale ($112B). The miner is the biggest producer of iron ore and pellets, which are little iron ore balls used to make steel. The top 3 are separated from the rest of the group by a $57 billion margin. Glencore ($55B), with its diverse business of trading and mining metals, agricultural goods, and oil and gas, is in the fourth position. [2]
Metal consumption by the automobile sector is significant, which accounts for Norilsk Nickel’s ($54B) fifth-place finish. The business, which is controlled by the richest man in Russia, is the largest producer of palladium, which is utilized in catalytic converters for automobiles. Additionally, miners provide precious metals like gold, silver, and gemstones to the upscale market. One of the top diamond producers in the world, Anglo American ($52 billion), is ranked sixth on the list. [2]
1. BHP
BHP is an international resources company that is based in Australia. It explores and mines minerals, such as gold, iron ore, coal, titanium, nickel, copper properties, and ferroalloys. In addition to that, the company also offers petroleum exploration, production, and refining services. BHP is a mining company that serves customers worldwide. [3] In 2021, its market capitalization was $179 billion, making it the largest mining company in the world.
2. Rio Tinto
Rio Tinto is an international mining and metals corporation that engages in the extraction, exploration, and processing of a range of mineral resources. It provides a variety of minerals and metals, such as iron ore, aluminum, diamonds, and uranium. Salt, titanium dioxide, and borax are among the industrial minerals that Rio Tinto also provides. [4]
The business runs smelters, refineries, processing plants, shipping, commercial, and research facilities, as well as port and rail infrastructure. Through research centers, it also runs its exploration, technology, and innovation operations. The business has activities in the Americas, the Middle East, Europe, Africa, and Asia-Pacific. The UK’s Greater London is home to the Rio Tinto corporate headquarters. [4] Its market capitalization in 2021 was $132 billion, which made it the second-largest mining company in the world.
3. Vale
Vale is a multinational mining company that is based in Brazil. It generates coal, gold, nickel, copper, bauxite, alumina, aluminum, potash, manganese, iron ore, pellets, and iron alloys. Additionally, the business owns and runs railroads and maritime terminals. The company has operations in almost 30 different nations. [3] In 2021, it had $112 billion in market capitalization and landed on the third spot among the ten major mining businesses in the world.
4. Glencore
In 2021, Glencore’s market capitalization reached $55 billion, making it the 4th largest mining company in the world. Glencore is a worldwide commodity trading and mining company that is based in Switzerland. It produces minerals, metals, energy, and agricultural commodities. Globally, the company provides services to the steel, oil, power generation, battery manufacturing, and automotive industries. [3]
5. Norilsk Nickel
Norilsk Nickel is the largest mining and metals firm in Russia and the biggest producer of nickel and palladium in the entire world. It was founded under Russian Federation law. Additionally, it is among the biggest producers of copper and platinum in the world. Norilsk Nickel also generates a sizable amount of by-products, such as cobalt, rhodium, silver, tellurium, selenium, iridium, and ruthenium. [5]
Prospecting, exploration, mining, concentration, and processing of minerals, as well as manufacturing, marketing, and sales of non-ferrous and precious metals, are the key businesses of the Nornickel Group. Over 30 countries are supplied with the products. [6] In 2021, its market capitalization was $54 billion, making it the 5th largest mining company in the world.
6. Freeport-McMoran
Freeport-McMoran is among the leading mining companies in the world. It functions through geographical assets that have known or conceivably discovered reserves of copper, gold, and molybdenum, as well as traded copper producers. Among its divisions are refined copper products, concentrate copper, gold, molybdenum, oil, and others. Its activities have been divided into five sections, including copper mines in North America, mines in South America, mines in Indonesia, and mines for molybdenum. [7] It is the 6th largest mining company in the world, with a $52 billion market capitalization in 2021.
7. Anglo American
Anglo American is a mining company based in the United Kingdom. It explores for and mines ferrous metals, basic metals, and precious metals. The company makes diamonds, copper, nickel, platinum, manganese, metallurgical coal, and iron ore. It runs businesses all across the world. [3] The market capitalization of Anglo American in 2021 was $52 billion, making it the seventh largest mining company in the world.
8. Fortescue Metals
Fortescue Metals had $51 billion worth of market capitalization in 2021, putting it in the 8th spot among the ten largest mining companies in the world. It is a mining business that works to create iron ore resources. China and other geographical areas are where it operates. Chichester Hub, Solomon Hub, Port Hedland, Eliwana, Iron Bridgen, and copper-gold exploration are a few of its initiatives. The company’s headquarters are in East Perth, Australia, and it was established by John Andrew Henry Forrest in April 2003. [8]
9. Newmont Goldcorp
Newmont Goldcorp is a gold mining and exploration company. It is responsible for the exploration, production, processing, and refining of lead, molybdenum, zinc, copper, and silver. In the US, Mexico, Canada, Ghana, Peru, Chile, Argentina, the Dominican Republic, Suriname, and Australia, the firm runs open pit and underground mining operations. [9] In 2021, it was the 9th largest mining company worldwide, with a market capitalization of $50 billion.
10. Southern Copper
Southern Copper is a fully integrated producer of copper. The company mines copper and derives a number of byproducts from the process, including molybdenum, silver, zinc, sulfuric acid, and other metals. Among its segments are the operations in Peru, the open-pit copper mines in Mexico, and the underground mining activities in Mexico, known as the IMMSA unit. [10] Southern Copper is the tenth largest mining company in the world with $47 billion in market capitalization in 2021.
Conclusion
These are the ten largest mining companies in the world. Significant investments are being made in electricity generation and electrification in the United States, Europe, and Asia. Nearly 33% of the world’s electricity is anticipated to come from renewable sources by 2024. For batteries, the transition away from fossil fuels will necessitate a large amount of copper, cobalt, and lithium. As the market grows, mining businesses are in a position to profit. The move to a cleaner energy source is only getting started, and the materials needed to create a more sustainable future will also be used to create the biggest mining firms in the future. We hope this post helped you learn more about the largest mining companies worldwide.
References
- https://education.nationalgeographic.org/resource/mining
- https://elements.visualcapitalist.com/the-biggest-mining-companies-in-the-world-in-2021/
- https://www.investopedia.com/biggest-mining-companies-5077594
- https://www.globaldata.com/company-profile/rio-tinto/
- https://www.ide.go.jp/English/Data/Africa_file/Company/botsuwana01.html
- https://www.linkedin.com/company/nornickel/?trk=public_profile_experience-item_profile-section-card_subtitle-click&originalSubdomain=au
- https://www.reuters.com/markets/companies/FCX/
- https://www.forbes.com/companies/fortescue-metals-group/?sh=5ef52c442bd3
- https://www.globaldata.com/company-profile/newmont-corp/
- https://markets.ft.com/data/equities/tearsheet/profile?s=SCCO:NYQ
