As metals prices fall and production costs rise, mining firms are expected to pursue more acquisitions. In May, BHP Billiton and Rio Tinto Group announced cuts to capital spending plans due to the weakening global economy and rising costs. Acquisitions have become more attractive as valuations have decreased due to indications that the height of the commodities cycle may have passed. Bank of America estimates that new production projects will decline 19% in 2013 to $103.8 billion.

Source: Bloomberg