Abstract
A cyclical industry is sensitive to the business cycle. Revenues are generally higher in periods of economic growth and are lower in periods of economic downturn. Mineral price cycles mean that mining companies’ expenditure on exploration and investment can vary considerably. Price fluctuations also have a significant effect on fiscal revenues, exchange rates and employment levels of countries rich in metals and minerals.
Highlights
A cyclical industry is sensitive to the business cycle
Revenues are generally higher in periods of economic growth and are lower in periods of economic downturn
The reasons for price cycles lie in the high volatility of demand for metal and mineral commodities and inflexible supply responsiveness
Summary
A cyclical industry is sensitive to the business cycle. Revenues are generally higher in periods of economic growth and are lower in periods of economic downturn. Vlado Vivoda* Senior Lecturer in Strategic Studies, Honorary Fellow, Centre for Social Responsibility in Mining, Sustainable Minerals Institute, Australia Implications of COVID-19 on the Global Mining Sector. The reasons for price cycles lie in the high volatility of demand for metal and mineral commodities and inflexible supply responsiveness.
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