Industry Analysis & Industry Trends
Over the five years through 2013-14, revenue for the Iron Ore Mining industry is expected to increase at an annualised 16.0% to reach $86.3 billion. Strong economic growth in large emerging nations, such as China and India, has lifted steel production, fuelling demand for iron ore and boosting its price, even allowing for the fall in 2011-12. Rising prices have led to capacity expansions and large-scale increases in Australia's iron ore output, particularly in 2013-14.
Following a large revenue decline in 2012-13 due to price falls, industry revenue is forecast to rebound in 2013-14 by 40.9% on higher iron ore output, low iron ore inventories in Chinese ports, and increased Chinese steel output... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the Iron Ore Mining industry are high. Large amounts of required capital are typically in the hundreds of millions of dollars to establish a new mine or acquire existing operations. New entrants must obtain long-term contracts to gain some security. This requires convincing buyers that the ore mined will be of suitable quality and that long-term supply can be guaranteed. New entrants require the skill to engage in negotiations with local communities likely to be affected by a mine. Prospective miners are also likely to require the skills to negotiate rail access agreements with BHP Billiton and Rio Tinto.
Foreign businesses seeking to enter the industry must gain approval from the Foreign Investment Review Board (FIRB)... purchase to read more