Due to high commodity prices, the mining industry is on the upswing. Numerous mining companies reported profits in the billions of dollars in the second half of 2016 after enduring major losses in the earlier part of the year. For example, the world’s largest mining company, BHP Billion, last week stated that it had profits of $3.2 billion for the later half of 2016, after announcing losses of $5.7 billion in the early part of the year. This turnaround is a trend for major mining companies, with firms like Anglo American, Rio Tinto and Glencore reporting similar results. Two years ago, commodity prices plummeted, affecting shares of mining companies. In response, companies cut staffing, sold underachieving mines and focused on decreasing debts. Thanks to a rebound in prices for commodities like coal, iron-ore and copper, companies have bounced back. Executives are still wary, however, and instead of embarking on new, large mining projects, many companies are instead choosing to use the profits to reward investors that stuck with them during difficult times.

Source: The Wall Street Journal