Industry Analysis & Industry Trends
Contract miners provide services to mining companies to support mining production. Demand for industry services depends on the relative advantages that mining companies derive from outsourcing these processes to industry operators, compared with controlling production in-house. Contract miners typically have access to a large pool of machinery and skilled employees that they leverage to win business. The strength of Australia's Mining division is a crucial factor in industry performance.
Over the past decade, demand for commodities has been strong, particularly from China and other export destinations. During periods of strong demand, mining companies (i.e. the industry's client base) tend to shift focus towards planning new capacity... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the mature phase of its life cycle. In the past five years, it has expanded at a slower rate than both GDP and overall Mining division revenue. Industry value added, which measures the industry's contribution to the overall economy, is estimated to increase at an annualised 0.8% over the 10 years through 2019-20. This is a lower than GDP growth in Australia over the same period at an annualised 2.7%. This means the Contract Mining Services industry will make up for a smaller share of the overall economy in 2019-20 than it did in 2009-10.
Low industry growth reflects weaker ore prices and reduced outsourcing growth by mining companies in the past five years... purchase to read more