Iron stomach: Industry revenue has significantly declined as world iron ore prices have fallen

The Iron Ore Mining industry has faced a difficult operating environment over the past five years. Large declines in the world price of iron ore have only been partly offset by rising volumes and a weaker New Zealand dollar that increased prices in foreign markets. Growth in capital expenditure on mining has boosted volume growth over this period. As a result of these factors, industry revenue is projected to decline by an annualised 9.0% over the five years through 2017-18. This includes an expected fall of 4.2% in the current year, to $230.5 million.Two firms currently dominate the industry: New Zealand Steel Limited (a subsidiary of Australia-based BlueScope Steel Limited) and Taharoa Mining Investments Limited...read more.

Industry Statistics & Market Size
Revenue
$231m
Annual Growth 13-18
-9.0%
Forecast Growth 18-23
Profit
Employment
230
Businesses
7

Industry Threats & Opportunities

  • Lower world iron ore prices have pushed industry revenue lower over the past five years
  • Industry output has increased due to capacity expansions and greater capital investment
  • New iron sand mining operations are projected to begin over the next five years
  • Industry Report - Industry Locations Chapter

    The location of iron sand deposits determines the geographic distribution of industry establishments. In the current year, almost all of the industry’s output is expected to be derived from iron sand mines in the Waikato region. This region includes the Waikato North Head mine owned by New Zealand Steel, a subsidiary of Australia-based BlueScope Steel. This mine is anticipated to account for around half of the industry’s output and revenue in 2017-18. The other main iron sand mine is at Taharoa, which New Zealand Steel divested to Taharoa Mining Investment Limited, a Maori Incorporation, in May 2017. This mine is likely to make up most of the balance of industry output.A few mining firms are either still in their pre-mining approval phase, or produce very low iron sand output. Sev...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron Ore Mining Industry are

  • Economies of scale
  • Ability to accommodate environmental requirements
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and Capital expenditure on mining in the Iron Ore Mining industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Iron Ore Mining in New Zealand Industry?

    Industry players extract iron ore or iron sand resources, and carry out basic beneficiation processes. Firms that primarily produce sinter and other agglomerates are also included in the industry.

    Industry Products
  • High grade Iron sands
  • Medium grade iron sands
  • Industry Activities
  • Iron sand mining
  • Iron ore mining
  • Iron sand and iron ore beneficiation
  • 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
  • Capital expenditure on mining
  • US dollars per New Zealand dollar
  • residential construction capital expenditure

  • Current Performance
  • Industry structure
  • Revenue and profit
  • Enterprise and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • New mining operations
  • Mixed revenue growth
  • Enterprises and employment
  • Table: Iron Ore Mining Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Non-Ferrous Metal Product Manufacturing in New Zealand

  • Key Selling Industries
  • Industrial and Mining Machinery Wholesaling in New Zealand
  • Mining Support Services in New Zealand

  • Products & Services
  • Medium grade iron sands
  • High grade Iron sands
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Domestic smelting firms
  • Chart: Major Market Segmentation for the Iron Ore 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 Iron Ore Mining

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron Ore Mining Industry

  • Industry Globalization
    New Zealand Steel Limited, Taharoa Mining Investments Limited,
  • Table: New Zealand Steel Limited - financial performance
  • Table: Taharoa Mining Investments Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron Ore 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 Iron Ore Mining Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Iron Sand Output (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beneficiation
  • Basic process of separating ore from unwanted materials.
  • Iron Sand
  • A type of iron ore that contains magnetite, ilmenite or other oxide minerals.
  • Magnetite
  • An oxide mineral found in iron sands and other deposits, which can be separated from sand through magnetised processes.
  • Tailings
  • Waste materials from processing minerals and ores. Iron sand tailings must usually be placed back in their original location or a designated area.
  • What Our Customers Say

    Why buy this report?

    The Iron Ore Mining in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Iron Ore Mining in New Zealand:
    • 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 Iron Ore Mining in New Zealand 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 Iron Ore Mining in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear