US and China-based business research firm Freedonia projected in its new study, Mining Equipment in China, that mining equipment in the country would grow 7.1% each year to 150.5 billion yuan, driven by an increased need for end-use products such as steel, chemicals, construction and coal-dependent electric utilities.

“Trends favoring increasing mechanization in Chinese mines will also spur new sales of mining equipment through the forecast period,” the group said.

“In addition, the harsh work environment and limited lifespans of mining equipment will create opportunities for sales of aftermarket parts and attachments, further fueling market gains.”

Coal mining would remain the largest equipment market through 2013, benefiting from the increased need for coal resources in energy and steel production.

“However, demand for mining equipment used in metal mining settings will see the strongest gains over the forecast period,” researchers noted.

“Advances will be stimulated by increasing metal mining activity spurred by rising demand from downstream industries, such as steel and nonferrous metals.

In the underground machinery sector overall, Freedonia expects a 6.4% rise to 44.9 billion yuan by 2013.

The biggest advances will hinge upon the greater need for pre-processed mined products and growing consumption of coal, steel, clay and cement. The strongest gains in the forecast period, however, will be marked in crushing, pulverizing and screening equipment.

“Surface mining machinery will also achieve fast sales growth through 2013 due to expanding mineral and metal output,” the firm noted.

The idling of smaller mines for environmental and safety reasons, and increasing consumption efficiency of mined products will put a dampener on activity, which Freedonia believes will decelerate demand for machinery and lead to price increases over time.

Freedonia has offices in Cleveland, Ohio, and Beijing, China.