Because most mining majors do not want to give mines away at fire sale prices, the expectation is growing that care-and-maintenance options may take centre stage.

As things stand currently, for-sale notices are ubiquitous, with the likes of Anglo American, Freeport-McMoRan, Vale, Rio Tinto, BHP Billiton and Glencore continuing along the asset-disposal road.

But will they go through with getting rid of assets if the prices offered are unrealistically low?

In a note to clients, BlackRock fund manager Evy Hambro predicts an acceleration of mine closures in 2016.

BlackRock, in the words of the Sydney Morning Herald, is “the biggest holder of BHP Billiton’s Australian shares, the biggest shareholder in Newcrest Mining, the second-biggest shareholder in Rio Tinto and a top-four shareholder in Anglo American, Glencore and Fortescue Metals”, to name a few.

On top of that, Australia’s Financial Review quotes investment bank Goldman Sachs as forecasting more commodities woes on the back of a mining industry that cannot “stop itself from digging”.

The Sachs report blames the worsening bear market on the industry’s failure to close mines and warns of the likelihood of an “elongated bear market” because of companies selling mines to one another rather than closing mines down.

“The family silver is now on sale,” says Investec Securities, which is borne out by US natural resource company Freeport-McMoRan letting it be known that it is “open to discussion” on all assets.
On top of that, the new-look Anglo American has widely publicised its intention to exit iron-ore, coal, manganese, nickel, niobium and phosphates.

Last week, Rio Tinto sold its 40% interest in the Bengalla coal joint venture, in Australia, to New Hope Corporation for $616.7-million, which takes announced or completed divestment since January 2013 to $4.7-billion.

Glencore expects to realise $4.5-billion in divestments, while also considering buying Anglo American’s stake in the Cerrejon coal operation, in Colombia.

In the current half of 2016, it will also sell a large minority stake in its agricultural business and finalise bids for its Cobar copper mine, in Australia, and Lomas Bayas copper mine, in Chile.

Anglo is evaluating buyer interest in the Moranbah North, Grosvenor and Moranbah South assets in the Bowen basin, in Queensland, which have a combined resource base of a half a billion tonnes.

In South Africa, Anglo has shortlisted prospective buyers of its coal mines and is unbundling Kumba Iron Ore.

BHP Billiton New Mexico Coal last month sold the San Juan coal mine for $127-million to a subsidiary of Westmoreland Coal Company.

Canadian media are reporting that Brazilian mining company Vale, which reported a 2015 loss of $12.1-billion, may be putting its Sudbury nickel operations on the chopping block – and the list could go on.