Industry Analysis & Industry Trends
Australia's nickel mine output is expected to decline in 2012-13, as output from some higher cost operations is curtailed in response to ongoing softness in nickel prices (in both Australian and US dollars). Nickel ore production is expected to be about 207,000 in 2012-13, down from 225,000 tonnes in the previous year, but well above the 191,400 tonnes produced in 2007-08. Most of the nickel ore mined in Australia is processed locally.
Industry revenue is expected to fall by 12.3% in 2012-13 to $2.43 billion as nickel prices continue to recede in the face of weak demand for steel. In China, the government has slowed some of its infrastructure projects... purchase to read more
Industry Report - Industry Investment Chapter
The Nickel Ore Mining industry is capital intensive, as evidenced by the large share of revenue accruing to capital. High levels of capital spending are reflected in high depreciation charges. Indeed, the ratio of wages to depreciation sits at 3:1, reflecting the importance of capital investment to the industry.
Much of the industry's capital is tied up in underground mining, heavy earth moving equipment of various types and in mining leases. It typically costs hundreds of millions of dollars to establish or expand a mine... purchase to read more