Though the soaring demand of commodities is always talked about, there are many factors which are unheard which hit their supply. A report on the global mining industry released by PricewaterhouseCoopers this week indicates that while the revenues of the top 40 mining companies grew by 32% in 2007, their costs increased by 38% which eroded the margins.

It is observed by PwC that mining companies are struggling to keep up with demand. PwC in its analysis found that the industry's market capitalization grew by 54% and diversified giants and emerging market companies, in particular, were strong. Despite this growth, the industry faces both external and internal challenges. The strain on existing resources to support the industry and shortages of people, power and procurement are the most critical issues facing mining companies today, along with the availability of professionals and skilled labor. Professional roles such as metallurgists and mining engineers are not being filled to the extent the industry requires. A lack of electricity has recently crippled operations in many regions. South Africa, in particular, has experienced load shedding, hindering the ability of mining companies to operate at normal levels of production and directly affecting the local labor market. Mining companies are also having more trouble in procuring critical equipment and supplies and facing global tire shortage. Companies are now scrutinizing maintenance schedules and usage patterns for any possible opportunity to extend the life of existing equipment.