Under pressure: Pricing falls for several minerals have limited growth in division revenue

Australia has a large supply of mineral, hydrocarbon and non-mineral reserves, which the Mining division extracts, processes and sells. These reserves are often high quality and close to the Earth's surface, enabling Australia's Mining division to be price competitive on a global scale. The division is export-oriented, with exports expected to account for more than 73% of revenue in 2018-19. Exports will continue to account for a high proportion of revenue over the next five years, due to a forecast increase in natural gas exports.The Mining division's performance depends on pricing, the value of the Australian dollar, global supply trends, capital investment and demand for commodities. The division's operations are generally cyclical, as new supply takes years to develop...read more.

Industry Statistics & Market Size
Revenue
$235bn
Annual Growth 14-19
0.2%
Forecast Growth 19-24
Profit
Employment
172,050
Businesses
7,563

Industry Threats & Opportunities

  • Pricing falls and increased output have influenced the division’s performance
  • The industrialisation of countries such as China and India has driven demand for natural resources
  • The division is forecast to focus on output growth and productivity over the next five years
  • Industry Report - Industry Analysis Chapter

    The Mining division’s revenue has increased at a slow rate over the past five years, with higher output partly offsetting generally lower prices. Countries such as China and India have rapidly industrialised over the period, driving demand for a range of natural resources and industrial commodities. High global demand prompted several major Australian mining companies to commit to new mining projects and expansions early in the period, resulting in high capital investment by historical standards, and large increases in mining volumes across several industries. However, increased domestic and world mining output has contributed to large price declines for many division goods over the past five years...purchase to read more.

    Additional Insights for the Mining Industry

    IBISWorld has determined the most important Key Success Factors for the Mining are:

  • Availability of resource
  • Proximity to transport
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and Actual capital expenditure on mining in the Mining industry impact industry performance..

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    What's in this report

    What is the Mining Industry?

    The Mining division includes all operations that mainly extract minerals or hydrocarbons (oil and gas), explore for minerals or hydrocarbons, and provide a variety of services to firms engaged in these activities.

    Industry Products
  • Coal mining
  • Oil and gas extraction
  • Other metal ore mining
  • Iron ore mining
  • Non-metallic mineral mining and quarrying
  • Exploration and other mining services
  • Industry Activities
  • Coal mining
  • Oil and gas extraction and mining
  • Metal ore mining
  • Non-metallic mineral ore mining
  • Other mineral mining and quarrying
  • Services to mining
  • Mining exploration services
  • Contract and mining support services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of iron ore
  • Actual capital expenditure on mining
  • US dollars per Australian dollar
  • World price of natural gas
  • GDP of mainland China
  • World price of steaming coal

  • Current Performance
  • Revenue and profit
  • Capital investment
  • Productivity challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating conditions
  • Gas expansion
  • Low-cost production
  • Table: Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Iron Smelting and Steel Manufacturing
  • Aluminium Smelting
  • Copper, Silver, Lead and Zinc Smelting and Refining
  • Gas Supply
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Electricity, Gas, Water and Waste Services
  • Mining
  • Professional, Scientific and Technical Services
  • Wholesale Trade

  • Products & Services
  • Iron ore mining
  • Oil and gas extraction
  • Coal mining
  • Other metal ore mining
  • Exploration and other mining services
  • Non-metallic mineral mining and quarrying
  • Chart: Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Iron ore export markets
  • Oil and gas export markets
  • Black coal export markets
  • Domestic energy industries
  • Metal product manufacturing industries
  • Other export markets
  • Mining division
  • Other domestic industries
  • Chart: Major Market Segmentation for the Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mining Industry

  • Industry Globalization
    BHP Group Limited, Rio Tinto Plc - Rio Tinto Limited, Glencore Operations Australia Pty Limited,
  • Table: BHP Group Limited - financial performance
  • Table: Rio Tinto Plc - Rio Tinto Limited - financial performance
  • Table: Glencore Operations Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mining Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bord-And-Pillar
  • A coal mining method that divides a coal seam into regular blocks to aid in extraction processes.
  • Coking Coal
  • Coking, or metallurgical, coal is a high carbon content used to produce coke for steelmaking.
  • Natural Gas
  • Naturally occurring gases consisting primarily of methane, but also including small amounts of heavier hydrocarbons such as propane and butane.
  • Steaming Coal
  • Steaming coal, or thermal coal, is a high energy content burned as fuel in power stations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mining market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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