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 - Starting a New Business Chapter
Industry entry barriers are high for new companies. In particular, a large amount of capital is required to establish contract mining operations. Firms need to invest heavily in large-scale equipment or have sufficient funds available to lease required equipment and machinery. Work tends to be won by firms with an established track record in the industry that offer a competitive price. Further, gaining access to experienced and skilled staff can be an entry barrier for new contract mining companies as experienced and knowledgeable staff command high wages.
The industry requires substantial working capital to maintain operations and to acquire or lease mining equipment... purchase to read more