Boston, MA -- (SBWIRE) -- 08/12/2014 -- Mining equipment is one the major areas of expenditure for a mine. With the Australian mining industry currently facing a lack of available capital, pressure is being applied on purchasing decisions, which is resulting in changes in procurement strategies and behavior.

Understanding the changes in procurement behaviors is critical for mining equipment and service suppliers.

In an effort to gain insight into this issue, in February and March 2014, Timetric surveyed 110 mine managers, maintenance managers, procurement managers and other key decision-makers currently working in 90 Australian mines. Respondents were asked specific questions about purchasing methods and expectations concerning future expenditure for mining equipment.

Key findings include:
- Despite being the dominant method of equipment purchase, outright purchase is expected to fall significantly in the next two years;
- More respondents see rental agreements increasing than any other method;
- Plant and heavy equipment will see the largest expenditure cuts within the next 12 months.

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Report Highlights

Overall trends in the data revealed:

- Despite being the dominant method of equipment purchasing, outright purchase is expected to fall significantly in the next two years.
- More respondents see rental agreements increasing than any other method.
- Plant and heavy equipment will see the largest expenditure cuts over 2014 and 2015.
- The biggest challenge identified was sourcing equipment that was 'fit for purpose', including specific references to equipment suiting mine conditions.

Report Scope

This report focuses on the Australian mining market and examines trends in purchasing across a range of different categories including plant and heavy equipment; equipment consumables; equipment parts and components, maintenance services; and explosives, blasting materials and chemicals.

Reasons to Get this Report

- Compare the methods Australian miners use to acquire equipment, and how this is expected to change.
- Analyse the general expectations within the Australian mining industry for future expenditure, and how this varies by segment.
- Understand how different customer segments in Australian mining plan to rationalise or extend their supplier networks.
- Identify the major challenges Australian miners face when sourcing equipment.

Companies Mentioned in this Report: Centennial Coal, Peabody Energy, Newcrest, Yancoal, BHP Billiton, Anglo American, Rio Tinto, Fortescue Metals Group

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