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 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 0.5% over the 10 years through 2020-21. This is a lower than Australian GDP growth over the same period, which is forecast at an annualised 2.8%. This means the Contract Mining Services industry will make up a smaller share of the overall economy in 2020-21 than it did in 2010-11.
Low industry growth reflects weaker ore prices and reduced outsourcing growth by mining companies in the past five years... purchase to read more