Rocky ground: Revenue continues to fall as capital expenditure on mining declines

Over the first half of the past decade, demand for Australian mineral commodities was strong, particularly from markets in China and other export destinations. During this period of strong demand, mining companies, which make up the industry’s customer base, significantly increased the number of active mining projects in Australia. Increased activity in the Mining division flowed through to higher demand for contract mining services. These services include exploration, supply chain management and commodity processing, among many other parts of the mineral supply process.The industry’s performance has significantly declined over the second half of the past five years. Industry revenue is expected to decline at an annualised 5.6% over the five years through 2017-18...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
-5.6%
Forecast Growth 18-23
Profit
Employment
24,677
Businesses
179
Market Share of Companies

Industry Threats & Opportunities

  • Capital expenditure on mining has declined since 2012-13, negatively affecting the industry
  • Firms in the Black Coal Mining industry have remained cautious about entering long-term contracts
  • Demand from iron ore and black coal mining firms is expected to improve, supporting the industry
  • Industry Report - Industry Locations Chapter

    The geographic distribution of industry enterprises and revenue tends to reflect the distribution of overall mining output. The largest proportion of industry players are therefore located in Western Australia and Queensland. Western Australia is the most important region for contract mining due to its large share of metal ore and mineral production, particularly iron ore and gold. Many of the industry’s companies are headquartered in Western Australia.Queensland accounts for the second-largest share of industry enterprises and revenue due to its substantial coal, natural gas and other mineral mining activities. A large proportion of industry revenue in Queensland is derived from coal mining activities. Bla...purchase to read more.

    Additional Insights for the Contract Mining Services Industry

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

  • Access to highly skilled workforce
  • Successful industrial relations policy
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Actual capital expenditure on mining and US dollars per Australian dollar in the Contract Mining Services industry impact industry performance..

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    What's in this report

    What is the Contract Mining Services Industry?

    Companies in the industry carry out core stages of a mining operation as third parties on a fee or contract basis. Contract miners supply both machinery and skilled employees to undertake mineral and resource extraction activities at Australian mining sites.

    Industry Products
  • Surface contract mining
  • Underground contract mining
  • Oil and gas extraction
  • Industry Activities
  • Surface contract mining services
  • Underground contract mining services
  • Oil and gas extraction on a contract basis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Actual capital expenditure on mining
  • US dollars per Australian dollar
  • Demand from black coal mining
  • Demand from iron ore mining
  • Base metals price index

  • Current Performance
  • Revenue and profitability
  • Turning point
  • Major company strategies
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Turning point
  • Table: Contract Mining Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Black Coal Mining
  • Brown Coal Mining
  • Iron Ore Mining
  • Copper Ore Mining
  • Gold Ore Mining

  • Key Selling Industries
  • Mining and Industrial Machinery Wholesaling
  • Transport Equipment and Large Vehicle Rental

  • Products & Services
  • Surface contract mining
  • Underground contract mining
  • Oil and gas extraction
  • Chart: Contract Mining Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Iron ore mining firms
  • Coal mining firms
  • Oil and gas extraction firms
  • Other mining firms
  • Gold mining firms
  • Chart: Major Market Segmentation for the Contract Mining Services 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 Contract Mining Services

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    CIMIC Group Limited, Downer EDI Limited,
  • Table: CIMIC Group Limited - financial performance
  • Table: Downer EDI Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Contract Mining Services 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 Contract Mining Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Highwall
  • A form of surface mining where coal is extracted from the face of a coal seam.
  • Open-Cut Mining
  • A type of surface excavation in the form of an inverted cone. The shape of the mine opening varies with the shape of the mineral deposit.
  • Overburden
  • Soil that covers the mineral resource, which must be removed before the ore or coal can be extracted.
  • Surface Mining
  • Techniques used to extract resources that typically occur close to the surface.
  • What Our Customers Say

    Why buy this report?

    The Contract Mining Services 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 Contract Mining Services:
    • 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 Contract Mining Services 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 Contract Mining Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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