Mining is a cyclical business, and the miners will eventually represent a good opportunity for investors to return, but like the shipping industry that chased growth and created a glut that still weighs heavily on the sector, mining pursued volume, which Pricewaterhouse says created inefficiencies that are “now structurally built into many mining operations.”
That suggests the correction is not over and there are still new lows to be tested, even if there’s no one around to see it.
The article The Incredible Shrinking Mining Sector originally appeared on Fool.com.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Vale.
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