What is the Contract Mining Services industry?
The industry displays a moderate level of capital intensity. In 2016-17, for every dollar invested in capital, an estimated $5.34 is spent as wages. Industry players are heavily dependent on both capital machinery and equipment and skilled labour, which results in a moderate capital intensity level. Industry players generally have varying levels of capital intensity depending on their main services. For example, open-cut mines are typically less reliant on machinery and equipment compared with underground mines.
Firms invest in large-scale mining machinery, excavating equipment, heavy-duty vehicles and other machinery. Some industry players may seek to lease this equipment to minimise their initial capital requirements and due to the volatility of industry demand... purchase to read more