Miners unearth a profit bonanza — and the rally looks set to last into 2017
After a year of rallies in everything from coal to iron ore, analysts expect the good times to go on in 2017, bringing top metals and energy producers back from the brink
Melbourne — Miners had been digging in one of Australia’s oldest collieries for almost a century until operations wound down a year ago, the victim of plunging global commodity prices. Now owner Glencore is resuming output at the Queensland site, the latest sign of a profit bonanza bringing the world’s top metals and energy producers back from the brink. Everything from coal to iron ore to zinc soared in 2016, rebounding from multiyear lows as output cuts and stronger demand trimmed surpluses. The rallies erased losses that sent the industry reeling from 2015. The biggest companies — BHP Billiton, Rio Tinto Group, Vale SA and Glencore — may earn a combined $26bn in the six months to December, a two-year high and 40% more than the first half, forecasts compiled by Bloomberg show. The windfall may not end there. Analysts predict more income gains in 2017, which would bolster balance sheets and allow mining companies to pursue acquisitions, raise dividends and cut debt. If construction...
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