Joy Global is aiming to lower its dependence on coal mining, turning to hard rock mining.
Speaking to Bloomberg, Joy CEO Ted Doheny (who took control late last month) said the mining manufacturer will be pushing its focus deeper into hard rock mining, particularly into copper.
“Part of our strategy is to grow beyond coal,” he said.
“The economics and the fundamentals for copper are fairly strong today and we see that continuing.”
Copper has previously been forecast for a major spike over the coming years, as a boom in construction off the back of greater urbanisation begins to take hold.
According to IBISWorld reports industry revenue is expected to increase by 5.1 per cent to $7.8 billion in 2013-14 as increased output is offset lower Australian dollar copper prices.
IBISWorld explained that “industry revenue is expected to continue to grow over the five years through to 2018-19 reflecting increases in copper ore output, a decline in the value off the Australian dollar and rising US dollar copper prices”.
It went on, going into greater detail, stating that “overall industry revenue is expected to grow by an annualised rate of 1.8 per cent over the five years from 2014-15 through to 2018-19, to total $8.5 billion”, which, despite being in growth, is a dramatic slowdown from the annualised growth rates of 7.5 per cent experienced between 2009-14.
This movement away from coal comes as Joy records a massive fall in revenues year on year.
In the fourth quarter of 2013 it saw sales drop 26% and bookings down 19% from the previous corresponding period.
On the back of this it is looking to increase it business in copper, to account for around a fifth of its sales, Doheny said.