http://news.yahoo.com/gold-silver-ore-mining-us-industry-market-research-080030819.html

The Gold and Silver Ore Mining industry has a medium to high market share concentration. The six largest gold producing mine sites, which account for roughly 70.0% of total gold production, are operated by the four major players: Barrick Gold Corporation, Newmont Mining Corporation, Kinross Gold Corporation and Kennecott Utah Copper (Rio Tinto Group). “The high level of industry concentration reflects the relatively small amount of mineral resource locations, and multiple firms often operate at the same mine establishments,” adds Kruchkin. Additionally, producers have an incentive to merge due to the cost benefits of having larger operations. Large producers also have greater capital availability necessary to invest in mine exploration and development. All these factors give major players an advantage, making it difficult for smaller firms to compete and lead some to consolidation.

As demand grows domestically and internationally, producers are attempting to boost production to take advantage of high prices. However, a lack of investment in exploration and mine development in the 1990s and early 2000s has made it difficult for producers to catch up. Gold production dropped consistently from 2001 to 2009, but increased over 2010 and 2011 because of recent investments in production. Over 2012, US gold production is expected to jump a further 3.2% to 245 metric tons. Silver production is expected to remain relatively stable after resource depletion caused significant drops in the late 1990s. The four largest firms have invested in mine-expansion projects to reap the benefits of high gold and silver prices. Over the five years to 2017, US economic growth is expected to ramp up, thereby easing some of the upward pressure on gold and silver prices. For more information, visit IBISWorld’s Gold and Silver Ore Mining in the US industry report page.