Industry Analysis & Industry Trends
The Diamond and Gemstone Mining industry is dominated by the mining and export of diamonds. Australia is a major producer of diamonds on the world stage. Industry players export cheaper unsorted diamonds and a limited number of rare coloured diamonds. The yellow and pink diamonds from the Kimberley region in Western Australia are Australia's most notable coloured diamonds, and the sale of these high-end stones contributes disproportionately to industry revenue. In addition to diamonds, the industry includes companies that mine opals, sapphires and other gemstones.
Industry revenue is estimated to fall at a compound annual rate of 4.0% over the five years through 2015-16, to reach $380.1 million... purchase to read more
Industry Report - Starting a New Business Chapter
Entry barriers to the industry vary according to the type of product mined. There are high barriers to entry to diamond mining, reflecting the large amounts of money required for exploration and mine development, and the entrepreneurial skill required for marketing. Significant capital inputs are required for mining equipment and other inputs, while wage costs are also high to attract experienced miners. The dominance of Rio Tinto in the industry also highlights the economies of scale required for major operations.
Entry barriers are much lower for opal or sapphire mining, as the productive fields are more accessible and more amenable to mining via relatively simple methods... purchase to read more