Mining in Australia

Mining is one of Australia's best performing industries across a range of measures. In financial terms mining generates one of the highest returns to its stakeholders. Using key performance ratios such as return on sales, return on funds, and return on assets, the mining industry has performed above the average for all Australian businesses over the last five years.

The mining industry provides the highest returns to its employees, paying an average hourly rate of pay almost double the average across all Australian industry. Productivity growth has also been strong, averaging three times the rate for the whole economy over the last decade. This reflects the efficiency of our mining sector.

Australia and Australian companies are continuing to develop new technologies, better mining practices and new mining processes and systems - such as contract mining - to ensure they continue to push the bounds of world best practice. Australia is a major producer and trader of most minerals.

For 2000-2001 the mining industry (including exploration services and services to mining) generated sales of between A$54 billion. The mining industry accounts for 3.4 percent of Australia's economic output or Gross Domestic Product. Its importance is magnified by the value adding that takes place in our basic metal processing sectors which currently generate a further A$25 billion in sales.

The mining industry is Australia's most important export earner. In 2000-2001 some A$24 billion worth of mining product was exported in unprocessed or unrefined form, with an additional A$20 billion in the form of processed metal products such as aluminium and iron and steel. Most exports are destined for markets in the Asia- Pacific region. It is the demand from these rapidly emerging markets that will ensure strong growth in this industry over the next two decades.

Gas is forecast to be the fastest growth sector during the current expansion phase, both as an export commodity in its own right and as a key energy source for the production of aluminium and new metal processing facilities. Other sectors forecast to enjoy strong growth over the next decade include nickel, iron ore, uranium and possibly oil, given the high probability of new discoveries.

Renewed expansion in the mining industry will provide major opportunities for investors in and suppliers to the mining and downstream mineral processing sectors. A feature of the current expansion phase is the development of new and more efficient processes such as contract mining services, oil and gas field services, and mineral exploration services. These new services to the mining industry, along with the expansion in specialist business services such as engineering and maintenance services, are providing a range of new opportunities for small and medium sized players. Opportunities extend to other suppliers to the industry such as mining and related equipment suppliers.

The mining industry is one of Australia's best, and will continue to provide opportunities at all points along the input-output chain.

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