There is today widespread concern about the future of the mining industry. In attempting to understand the underlying causes the paper probes in some detail, the long term structural changes affecting growth of metal demand and the development of excess mineral supply capacity. This examination reveals an industry characterised by an unfavourable combination of high barriers to exit and low entry barriers. While rising entry barriers are expected to herald some improvement in the profitability of mining over the next decade, this adjustment is likely to be slow and will require a more economically rational assessment of the industry by corporations and governments Alike.