These investments are coming from major producers that approved large-scale projects during the period of high prices.

Based on companies’ capital budget forecasts, it is likely that 2016 will see a plunge in expenditure for the top 20, to $US43.15 billion, followed by a smaller fall in 2017 of 7% to $40 billion.

“We have now moved to an era where companies’ capital expenditure budgets are predominately sustaining capex, rather than for expansions or new projects,” according to Timetric.

Pressure on suppliers remains, and in order to keep their existing clients, Timetric’s research shows the need for suppliers to improve in terms of product quality and reliability, the availability of parts as well as the ability to support cost reduction.

According to Timetric, 2015 proved to be another poor year for commodity prices. Prices fell across the year for all major commodities and equipment manufacturers reported significant declines in demand.

Yet now, more than ever, it appears to have reached the bottom of the trough.

More market commentators, are expecting stability in prices for 2016, as many unprofitable operations are closing and taking surplus production away from the global supply and demand balance.

Projects such as Vale’s S11D and both Rio Tinto’s and BHP Billiton’s Pilbara expansion projects continue to ramp up to their nameplate capacity.

Furthermore, Rio Tinto’s Mongolian copper project, Oyu Tolgoi, will finally expand its underground operation, having finalised negotiations with the Mongolian government.