Metals and Mining GICS: An Overview
The Global Industry Classification Standard (GICS) is a standardized classification system for equities developed by MSCI and Standard & Poor's (S&P). The GICS structure consists of 11 sectors, 25 industry groups, 74 industries, and 163 sub-industries (as of March 17, 2023).
The GICS system is used by the global financial community to categorize companies into sectors and industries.
The "Metals & Mining" category is not a sector but falls under the "Materials" sector. Within this sector, it is classified as an industry group with the number 151040. This is then further divided into industries and sub-industries. This grouping allows investors to categorize and analyze businesses in this space in a more detailed way.
The Materials Sector makes chemicals, construction materials, forest products, glass, paper, packaging products, metals, minerals, and steel.
151040 Metals & Mining
The "Metals & Mining" industry group includes companies involved in a wide range of activities, including extraction and beneficiation of metallic minerals, production of metals, and mining of non-metallic minerals. Sub-industries can include Aluminum, Diversified Metals & Mining, Copper, Gold, Precious Metals & Minerals, Silver, and Steel.
Companies in this sub-industry actively engage in the mining and processing of bauxite, a key raw material for aluminum production. They also participate in alumina refining, where bauxite is processed to extract aluminum oxide. These companies further employ advanced technologies to smelt aluminum oxide and produce finished or semi-finished aluminum products.
Additionally, they contribute to environmental sustainability by actively recycling aluminum to create new products, reducing waste, and conserving resources. By operating across the entire aluminum value chain, these companies play a vital role in meeting the global demand for lightweight, durable, and versatile aluminum products.
15104020 Diversified Metals & Mining
In this sub-industry, companies are actively involved in the diversified production or extraction of various metals and minerals. They undertake nonferrous metal mining activities, excluding bauxite, to extract valuable resources such as copper, zinc, nickel, and lead.
These companies also engage in salt and borate mining, extracting essential minerals for various industrial applications. Furthermore, they undertake phosphate rock mining, an important source of phosphorus for fertilizers and other chemical products. Their diversified mining operations encompass a wide range of activities aimed at harnessing the earth's resources responsibly and efficiently.
However, these companies exclude iron ore mining, which falls under the Steel Sub-Industry, as well as bauxite mining (classified in the Aluminum Sub-Industry) and coal mining (classified in the Coal & Consumable Fuels Sub-Industry).
The companies in this sub-industry actively participate in copper ore mining, extraction, and processing. They employ sophisticated techniques to extract copper from ore deposits and then refine it into various forms, including cathodes, rods, and wires.
These companies play a pivotal role in meeting the global demand for copper, an essential metal used in electrical wiring, plumbing, and various industrial applications. Through their active involvement in copper mining, they contribute to the development of infrastructure, renewable energy projects, and technological advancements.
Within this sub-industry, companies actively engage in gold mining, extraction, and processing. They utilize advanced techniques and technologies to extract gold from ore deposits and refine it into bullion or other forms suitable for jewelry, investment, or industrial applications.
These companies play a crucial role in the supply of gold, a precious metal highly valued for its beauty, scarcity, and diverse applications.
Additionally, this sub-industry includes South African finance houses that actively invest in gold mines, providing financial support and facilitating the growth and development of gold mining operations.
15104040 Precious Metals & Minerals
Companies operating in this GICS classification 15104040 sub-industry actively mine various precious metals and minerals, excluding gold. They explore and extract resources such as platinum, palladium, rhodium, and other rare metals and minerals.
By harnessing their expertise in exploration, mining, and processing, these companies contribute to the global supply of precious metals and minerals. They ensure that these crucial resources are consistently accessible for industry, technology, and investment. This, in turn, promotes global innovation and economic growth.
In this GICS sub-industry, companies actively focus on silver mining, extraction, and processing. Advanced techniques are used to extract silver from rocks. The extracted silver is then transformed into various forms such as bars, coins, and industrial-grade silver.
These companies are important because they meet the need for silver. Silver is a valuable metal that is used in jewelry, electronics, solar panels, and many other things. By actively participating in silver mining, they contribute to the global supply chain, supporting industries and enabling technological advancements.
This sub-industry excludes companies classified in the Gold or Precious Metals and Minerals Sub-Industries.
Producers in this sub-industry actively engage in iron ore mining, steel manufacturing, and the production of steel-related products. They utilize state-of-the-art technologies to extract iron ore from mines and refine it into iron through various metallurgical processes. Subsequently, these companies convert iron into steel, a versatile and widely used material in construction, manufacturing, and infrastructure development.
By actively participating in steel production, these companies contribute to economic growth, job creation, and the development of sustainable and resilient infrastructure worldwide. Furthermore, they also mine metallurgical (coking) coal, a vital ingredient in the steelmaking process, ensuring a steady supply of this critical resource.
Note that GICS can undergo revisions and updates, so it's best to check MSCI or S&P Global's official documents for the latest information. We made a detailed guide on metals and mining. You can learn about the industry and invest in it by reading our history.
What is GICS?
GICS is a classification system by MSCI and S&P Dow Jones Indices to help investors understand global companies' main business activities.