Contract Mining Services in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Contract Mining Services Market Research Report | ANZSIC B1099 | Jul 2015

Minefield: Lower commodity prices create cost pressures, curbing industry demand

IBISWorld’s Contract Mining Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
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Industry Analysis & Industry Trends

Contract miners provide services to mining companies to support mining production. Demand for industry services is driven by the relative cost and output advantages that mining companies derive from outsourcing these processes, compared with controlling production in-house. Contract miners typically have access to a large pool of mining machinery and equipment, and skilled employees to meet client needs. The strength of Australia's Mining division is a crucial factor in determining industry performance.

Over the past decade, demand for commodities has been strong, particularly from markets in China and other export destinations. During periods of strong demand, mining companies (the industry's client base) tend to shift focus towards planning new capacity... purchase to read more

Industry Report - Industry Investment Chapter

The industry has a medium level of capital intensity. The industry's revenue stream depends heavily on supplying both workers and equipment for mining operations. Increased participation in underground mining operations, which are typically more labour-intensive than open-cut mines, has tended to dilute capital intensity over the past five years. This trend is expected to continue over the next five years as industry wages are forecast to increase at a steady rate.

To calculate capital intensity, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital and wages are used as a proxy for labour. In 2015-16, depreciation is estimated to account for 5.6% of industry revenue, with wages estimated at 32.7%... purchase to read more


Industry ProductsRelated ReportsTable of Contents

What is the Contract Mining Services Industry?

Firms in the industry carry out stages of a mining operation as third parties on a fee or contract basis. Contract miners supply both machinery and skilled employees required to undertake activities on site.

Industry Products
Surface contract miningUnderground contract miningOil and gas extraction
Industry Activities
Surface contract mining servicesUnderground contract mining servicesOil and gas extraction on a contract basis

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