Industry Analysis & Industry Trends
Australia has a large supply of mineral, hydrocarbon and non-mineral reserves, which the Mining division extracts, processes and sells. These reserves are often of a high quality and close to the earth's surface, enabling Australia's Mining division to be price-competitive on a global scale. The division is export-oriented, with exports expected to account for over two-thirds of revenue in 2016-17. Division exports are projected to account for around three-quarters of revenue by 2021-22, on the back of a forecast increase in natural gas exports.
The division's performance depends on pricing, the value of the Australian dollar, and global trends in supply and demand for commodities. As new supply takes years to develop, division operations are generally cyclical... purchase to read more
Industry Report - Starting a New Business Chapter
Entry barriers for new firms into the Mining division are relatively high. To enter the division, participants need to obtain the right to develop a resource, secure environmental approvals, access capital to fund development and have the expertise to execute plans. The need to market commodities successfully to major export markets is a further barrier. Established miners work to reduce demand risk by securing contracts for supply with major customers in advance of developing projects. Due to these barriers, activity within specific mining industries is dominated by global commodity companies.
High capital requirements to establish a new mine and purchase mining equipment present additional entry barriers to new mining companies... purchase to read more