world mining news.

its not because the demand for IO is going south, more to do with the treatment they the chinese recieved at the hands of mmx......

The world's forty largest mining companies posted net profits of US$110 billion in 2010, an increase of 156% from the previous year, according to the latest version of the Mine report, published by the global accounting group PwC, entitled The Game has Changed.

The study also showed that company revenues rose by 32% to a record US$435 billion last year.

Results were largely driven by higher commodity prices and a 5% increase in production during 2010. The market value of the Top 40 rose by 26%, led by the three largest firms: BHP Billiton, Vale and Rio Tinto.

During the launch of the study, PwC's partner for the mining industry in Chile, Colin Becker highlighted that emerging markets have stolen the lead in the global mining industry. "The composition of the Top 40 has changed over the last eight years. Today 45% of the companies come from emerging markets, reflecting a turnaround in the balance of power amongst participants in the mining industry."

During the previous four years, shareholders in companies in emerging economies saw their average returns double and rise more than those of companies in traditional mining countries, such as Australia, Canada, the US, South Africa and the UK, among others.

"The mining industry has entered a new era full of important changes. If we look to the future, the growing demand for products - led by emerging markets - will drive the industry. Supply remains the biggest challenge the industry must face. In addition, the need to explore in ever more remote locations, the growing complexity of projects and new sovereign risks will add additional difficulties," said Colin Becker.

The study also calculates that, in order to meet this demand, the Top 40 has announced capital investments worth more than US$300 billion of which US$120 billion are planned for 2011, doubling the investment realized during 2010.

Meanwhile, the study notes that while benefiting from high commodity prices, the Top 40's cost structure has risen considerably, the result of falling grades, labor shortages and higher energy prices.

"Without a fall in the inflationary pressures in sight, maintaining discipline over costs continues to be vital for the industry, especially when the global and financial scenario remains volatile," Becker argued. /Source: Latinominer?a/

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