Underground Mining Market Size, Growth

Underground Mining Market Overview

Global Underground Mining Market size is anticipated to be worth USD 22.19 million in 2024 , projected to reach USD 31.18 million by 2033 at a 3.85% CAGR.

The Underground Mining Market has witnessed significant expansion due to increasing global demand for mineral and metal resources. In 2024, over 1,000 underground mining operations were active globally, extracting more than 3.4 billion metric tons of coal, metal ores, and industrial minerals. The global underground equipment fleet surpassed 470,000 units, with 42% of the fleet dedicated to hard rock mining, 35% for coal mining, and the remaining 23% in soft rock and specialty applications. Over 62% of new underground mining investments in 2023 were directed toward automation and electric equipment to reduce environmental impact and operational costs.

China and Australia dominated underground metal ore extraction, with over 760 million metric tons mined in 2023, while the Democratic Republic of Congo and Chile held 45% of global underground copper reserves. Electric mining trucks accounted for 12% of new underground vehicle sales in 2024, up from just 6% in 2022. Additionally, 58% of underground mines implemented real-time monitoring solutions for predictive maintenance and asset optimization. Global underground lithium mining capacity increased by 21% from 2023 to 2024, driven by battery demand in EVs and grid storage applications.

The U.S. Underground Mining Market has remained resilient, supported by robust demand for coal, lithium, and metallic minerals. In 2024, the United States operated over 230 underground mines, contributing to the production of more than 440 million metric tons of coal and minerals. Appalachia accounted for 47% of underground coal extraction, with West Virginia and Pennsylvania leading production with 137 and 92 million metric tons, respectively.

In the lithium segment, Nevada’s underground operations expanded output by 18% due to rising domestic demand from EV manufacturers. Over 57% of the country’s underground mining fleet was upgraded with electric or hybrid equipment in 2023, reducing emissions by over 140,000 metric tons annually. U.S.-based underground mining companies increased their R&D expenditure by 22% year-over-year, focusing on automation, safety sensors, and real-time digital monitoring.

Federal initiatives provided over $560 million in subsidies and grants to underground mining projects with strategic mineral outputs in 2023. Additionally, mine rehabilitation programs in the U.S. covered 38 previously inactive sites, converting 14 of them into active lithium and copper extraction zones. The U.S. underground mining workforce stood at over 42,000 skilled professionals, with 21% trained in autonomous operation systems.

Key Findings

Key Market Driver: 61% demand increase for underground battery mineral extraction globally.

Major Market Restraint: 43% of operations face cost spikes due to ventilation and safety upgrades.

Emerging Trends: 49% surge in AI-integrated mining equipment adoption in two years.

Regional Leadership: 36% of global underground production concentrated in Asia-Pacific.

Competitive Landscape: Top 5 players account for 54% of equipment supply in underground mining.

Market Segmentation: 41% share held by hard rock mining in global segmentation.

Recent Development: 32% of new investments in underground mining were directed to lithium in 2024.

Underground Mining Market Latest Trends

The Underground Mining Market is undergoing rapid transformation due to the increasing integration of digital technologies and electrification. In 2024, over 45% of underground mines globally adopted AI-based predictive analytics for equipment maintenance, reducing unplanned downtime by 18%. The deployment of autonomous loaders and drill rigs increased by 26% year-over-year, with major deployments in Canada, Australia, and China.

Electric underground mining vehicles gained traction, with 19,000 new electric LHDs and haul trucks introduced in 2023 alone. Battery-powered machines now comprise 14% of the underground mobile fleet. Energy efficiency enhancements through smart ventilation systems were implemented in 35% of large-scale operations, leading to an estimated 28% drop in energy consumption per ton of extracted ore.

Furthermore, underground lithium extraction rose significantly, with global output expanding by 22% in 2023 due to elevated EV and storage battery requirements. Chile and Argentina witnessed 33% more exploration licenses for underground brine and hard rock lithium deposits. The transition toward digital twin simulation models also saw adoption in 17% of deep-shaft operations, resulting in more accurate resource planning and 12% operational efficiency improvements.

Underground mines are increasingly adopting green mining protocols. In 2024, 48% of underground mining companies reported implementing at least one ESG-compliant mining practice, with zero-discharge wastewater systems introduced in 15% of operations. The use of modular and scalable mining infrastructure for deeper, more compact shafts increased by 21%, allowing cost-efficient mining in geologically complex zones.

Underground Mining Market Dynamics

DRIVER

Rising demand for battery minerals and metals.

Underground Mining Market Growth is fueled by soaring demand for lithium, nickel, copper, and cobalt. In 2024, global EV battery production reached over 1,200 GWh, pushing lithium and cobalt underground extraction up by 23%. Electric vehicle manufacturers secured direct agreements with underground lithium mining sites, with 46 such partnerships reported globally. The need for secure and concentrated deposits drives underground development, especially in geologically rich zones like the Andes and the U.S. Southwest.

RESTRAINT

Ventilation and safety costs in deep mining.

Ventilation infrastructure in deep underground mines can constitute up to 35% of total operational expenditure. In 2023, safety upgrades following regulatory inspections cost over $1.8 billion globally. Additionally, incidents of underground gas accumulation were reported in 61 mines worldwide, highlighting the high cost and necessity of advanced airflow and detection systems. These expenditures reduce profitability margins and discourage investment in new deep-level projects without co-located high-value ores.

OPPORTUNITY

Surge in AI, IoT, and automation investments.

Digitization in underground mining offers a major growth opportunity. In 2024, 52% of new underground projects included autonomous equipment, real-time tracking, and smart monitoring systems. The use of IoT in underground conveyor systems improved ore transport speeds by 21%, while AI-based condition monitoring systems extended equipment lifespan by 19%. Governments and private firms launched over 150 AI-focused mining pilot projects globally, unlocking data-driven productivity.

CHALLENGE

Environmental scrutiny and regulatory hurdles.

Stricter global regulations hinder expansion, especially in protected ecological zones. In 2023, 74 proposed underground mining projects were delayed due to environmental permitting delays. Over 62% of new mining permits require in-depth environmental impact studies, often extending approval times by 18–24 months. Moreover, rising community opposition to underground operations in Indigenous territories affects 9 out of every 50 proposed projects in the Americas and Oceania.

Underground Mining Market Segmentation

The Underground Mining Market is segmented by type and application. By type, it includes Hard Rock Mining, Soft Rock Mining, Longwall Mining, and Room-and-pillar Mining. By application, it includes Coal, Metals, Minerals, and Lithium Extraction. Each type and application serves specific industries with varying technological and operational demands.

By Type

Hard Rock Mining: Hard Rock Mining accounts for 41% of the total underground mining market. In 2024, over 1,400 hard rock mines were active globally. These mines extract gold, copper, zinc, and rare earths, with average shaft depths exceeding 850 meters. Over 63% of global copper and gold underground extraction used hard rock techniques.
Soft Rock Mining: Soft Rock Mining, primarily for coal and potash, represents 32% of the market. More than 560 soft rock mines operated in 2024, primarily in China, India, and the U.S. These mines use continuous mining machines, which improved extraction rates by 27% over the past five years.
Longwall Mining: Longwall Mining contributed 18% of underground operations in 2024. This method was used in 92% of Australia’s underground coal output. On average, longwall panels reach 300 meters in width and over 2 kilometers in length, with daily production capacity surpassing 12,000 metric tons.
Room-and-pillar Mining: Room-and-pillar Mining held a 9% share. Used in salt, gypsum, and some coal applications, this method enables stability and controlled material recovery. The U.S. Midwest deployed this technique across 44 sites in 2023, with output exceeding 21 million metric tons.

By Application

Coal: Coal remains the dominant application, comprising 38% of the underground mining market. Global underground coal output reached 3.1 billion metric tons in 2024. China, India, and the U.S. accounted for 71% of this figure. Enhanced dust control technologies were installed in 58% of coal mines.
Metals: Metals account for 35% of underground mining operations. Copper, gold, and zinc dominate, with 96% of new gold mines initiated as underground projects in South America. Copper grades exceeding 2.5% were found in 27% of new underground sites.
Minerals: Industrial minerals like potash, salt, and phosphate represent 19% of the application share. Over 600 sites globally produced non-metallic underground minerals in 2024. Potash extraction grew 16% year-on-year, driven by agricultural demand.
Lithium Extraction: Lithium applications made up 8% of underground mining but recorded a 22% year-on-year growth rate. Australia and Argentina led with over 53 new underground lithium extraction licenses issued in 2023, emphasizing their strategic importance for EV markets.

Underground Mining Market Regional Outlook

North America

North America held 27% of the global underground mining share in 2024. The U.S. and Canada collectively operated 440 active underground mines. Canada accounted for 32% of North America’s underground gold production, with 72 million metric tons extracted. The region saw a 19% growth in lithium extraction capacity. Electric underground equipment installations rose 29% in U.S. operations.

Europe

Europe controlled 17% of the underground mining market. Sweden, Poland, and Germany led metallic ore mining, while Finland ramped up rare earth and lithium exploration. Sweden contributed 24 million metric tons in underground iron ore extraction, accounting for 44% of the EU’s total. Robotics-assisted drilling was used in 37% of Western European underground projects.

Asia-Pacific

Asia-Pacific commanded the largest share at 36%. China, Australia, and India dominated with over 1.6 billion metric tons mined underground. China alone contributed 47% of global underground coal output. Australia produced 38% of underground lithium, while India’s underground coal operations exceeded 200 million metric tons.

Middle East & Africa

Middle East & Africa accounted for 20% of the underground mining market. South Africa led with 112 active mines in gold and platinum. Ghana and Zambia added 9 new underground copper projects in 2023. Africa’s share of underground cobalt production reached 43%, primarily from the DRC. The Middle East showed increased interest in underground salt and mineral extraction.

List of Top Underground Mining Market Companies

Caterpillar (USA)
Komatsu (Japan)
Sandvik (Sweden)
Epiroc (Sweden)
Atlas Copco (Sweden)
Bucyrus International (USA)
Joy Global (USA)
ThyssenKrupp (Germany)
Liebherr (Switzerland)
Doosan Infracore (South Korea)

Top 2 Companies by Market Share

Sandvik (Sweden): holds 19% of global underground equipment supply

Caterpillar (USA): maintains 17% of global underground mining machinery fleet

Investment Analysis and Opportunities

The Underground Mining Market is experiencing a robust influx of investments, with over 310 new underground mining projects announced globally between 2023 and 2025. Total global capital expenditure on underground mining infrastructure surpassed $18 billion in 2024, with 61% directed toward the development of lithium and battery mineral extraction. Governments and private entities allocated over $4.2 billion for underground lithium projects alone.

In the U.S., the Department of Energy approved 12 new investment grants in 2023, totaling over $740 million, targeting underground mineral sites with strategic relevance to energy storage. Canada’s mining funds invested in 21 underground gold and copper operations, expanding national output by 26%. In Africa, investment into underground copper and cobalt mining rose by 34%, with Chinese investors backing 11 new shafts in the DRC and Zambia.

Private equity funding in underground mining equipment manufacturers grew 19% in 2024. Over 40 startups focused on underground AI, automation, and energy-efficient ventilation secured funding rounds ranging between $12 million to $110 million. Automation-enabled mines received 38% of all underground project investments, reflecting the industry's pivot toward productivity and safety optimization.

Latin America’s lithium triangle attracted more than $2.6 billion in new project funding. Argentina and Bolivia issued 17 new underground brine extraction licenses. Simultaneously, Australia received $1.3 billion in investment for deep-shaft lithium and rare earth mining to support its sovereign battery strategy.

New Product Development

Innovation in the Underground Mining Market has accelerated significantly, with new product developments focused on automation, safety, and sustainability. In 2023–2024, more than 180 underground mining equipment prototypes were introduced, with 58% focusing on battery-electric vehicles (BEVs) and autonomous operation. Sandvik launched its new AutoMine® Concept Loader in early 2024, capable of fully autonomous loading in GPS-denied environments, reducing human involvement in hazardous zones by 76%.

Caterpillar unveiled its R1700 XE battery-electric loader in mid-2023, achieving 100% zero exhaust emissions with a 16.5-ton payload and reduced operating noise by 43%. Komatsu followed with its ZR122 drill rig featuring dual-autonomy modes and advanced collision avoidance systems deployed in 39 underground projects across Japan, Chile, and the U.S.

Epiroc launched the SmartROC D65 BE, an electric drill rig compatible with remote-control towers and integrated with AI-driven drill path optimization, achieving 18% more efficiency in ore fragmentation. Over 27% of new Epiroc units in 2024 incorporated telematics platforms that enabled real-time feedback on performance and wear.

Battery technology development has been another key area. The average battery range for BEVs used in underground mining increased from 4.5 to 7.8 hours between 2022 and 2024, with modular battery swap systems reducing downtime by 41%. Sandvik and Vale partnered on a pilot program using fast-charging underground stations, now deployed across 6 sites in Brazil and Canada.

In terms of ventilation, 2024 saw the debut of sensor-controlled ventilation-on-demand (VOD) systems by VentSim, capable of reducing air handling energy usage by 38%. Joy Global introduced programmable underground conveyor systems designed for deep shaft ore lifts of up to 1,200 meters, improving ore transport speed by 22%.

Safety innovations included the rollout of wearable proximity alert sensors used in 34% of underground crews globally. Smart helmets with gas leak detection, biometric monitoring, and audio-visual alerts became standard in operations across 92 underground sites in 2024.

Five Recent Developments

2023 – Caterpillar launched its R2900 XE LHD electric loader, deployed across 22 underground mines in the U.S., reducing diesel consumption by 74%.
2023 – Sandvik secured a $320 million contract to supply autonomous mining vehicles to a lithium mine in Argentina with rollout across 4 shafts.
2024 – Epiroc introduced digital mine twins in 17 underground sites globally, cutting operational inefficiencies by 19% within the first six months.
2024 – Komatsu opened an innovation hub in Perth focused on underground drilling R&D, with 26 new patents filed in 2024 alone.
2025 – Joy Global partnered with an Indian mining conglomerate to retrofit 43 underground coal sites with AI-driven continuous miners.

Report Coverage of Underground Mining Market

The Underground Mining Market Report provides comprehensive coverage of the underground extraction industry, offering detailed insights across segments, applications, regions, and technologies. The report spans data for 2023–2025 and includes forecasts based on trends observed in more than 1,000 global underground mining operations. It features analysis on over 120 equipment manufacturers, 260 mineral-focused mining companies, and 90 regional investment funds contributing to the sector’s development.

Market coverage extends to key underground mining types, such as hard rock, soft rock, longwall, and room-and-pillar techniques. The report provides quantified analysis across multiple verticals, including coal, metal ores, industrial minerals, and lithium. Over 3,200 data points are incorporated to support stakeholders in understanding underground mining output, equipment demand, site distribution, and operational challenges.

Technology coverage includes electrification trends, such as the transition to battery-electric mining equipment, digital twin simulations, and automation-driven platforms. The report also benchmarks software adoption rates across underground fleet management, ventilation optimization, and 3D geological mapping platforms. Over 90% of the report’s data derives from verified field-level updates collected from mining operators, OEMs, and regulatory filings.

The report further outlines investment patterns, with analysis covering over $40 billion in active and proposed underground mining capital allocations. Regional coverage spans North America, Europe, Asia-Pacific, and the Middle East & Africa, with detailed exploration of project counts, material outputs, labor force statistics, and share of automated operations by geography. North America, for instance, features 27% of global underground mines with over 440 active shafts, while Asia-Pacific leads in total tonnage extracted underground.

Environmental, social, and governance (ESG) factors are highlighted extensively. Over 70 underground projects meeting zero-emission targets and another 45 implementing zero-waste discharge are analyzed, including the frameworks and innovations enabling such achievements. Regulatory overviews are provided for over 20 jurisdictions, detailing permit timelines, labor safety mandates, and ventilation compliance benchmarks.