Analysis of Australian Mining Industry: Present Condition and Future Prospects

Running head: MICROECONOMICS
Microeconomics
Name of the Student:
Name of the University:
Author note

1MICROECONOMICS
Table of Contents
Introduction:...............................................................................................................................2
Analysis of paper 1:...................................................................................................................2
Analysis of paper 2:...................................................................................................................3
Analysis of paper 3:...................................................................................................................3
Analysis of paper 4:...................................................................................................................4
Analysis of paper 5:...................................................................................................................5
Conclusion:................................................................................................................................6
Reference:..................................................................................................................................7

2MICROECONOMICS
Introduction:
Australia is one of the mixed developed nation that has been facing going through its
27th consecutive growth year, which makes it stand out from the crowd (Foster 2015).
Owing to the large natural resource, Australia is accounted for the most of the coal and iron
export in the world till the days, when the Asian countries like China were silent (Giles et al.
2015). Once the international market being captured by the Chinese mining product
producers, then the economic condition of the Australian mining industry started to
deteriorate (Wright et al. 2016). Under this situation this report is meant to provide in-
depth details regarding the Australian mining industry through utilising the various models
sourced from the different source
Analysis of paper 1:
Source: https://www.smh.com.au/business/the-economy/2018-the-end-of-the-resources-
boom-as-falling-commodity-prices-bite-20180107-p4yyaa.html
Summary:
Considering the selected article it can be seen that the Australia has been falling
apart from its desired position of becoming the market leader in the mining product export
due to the fact that Australiana mining industry has ran out of the boom in the present date
(Duke 2018). The economy has been now focusing on the energy export as the substitute
product of the mining industry, which is aimed to provide the economy much amount of
boost towards prosperity.
Analysis:
Australia has potential to become the largest power exporter of the world with the
presence of LNG resources in the country. Considering the figure 1, it can be seen that, if the
economy moves from mining goods to export service, then the opportunity cost will be
lower compared to sticking with the core mining product.
Figure 1: PPF of Australian mining industry
Source: (Olav, Gael and Fuvya 2015)
The reduced amount of the opportunity cost serviced tom the Production Possibility
frontier is certainly impressing, however it does not indicated the ideal time or optimal
production amount of the natural resource trade off. Thus according to the selected article,
it would be ideal to shift to the LNG export as soon as possible because the iron and coal