Economics Assignment 2022

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
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ECONOMICS ASSIGNMENT1
Executive Summary
This paper is about the market structure and growth prospectus of an Australian company named
Carbine Tungsten Limited. It deals in the production and sale of minerals especially gold,
copper, lithium and iron. Although, it has small market capitalization, the firm has been able to
grow successfully in the recent years. However, it has few drawbacks regarding the export and
production as it has negative impacts on the society.

ECONOMICS ASSIGNMENT2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
1. Introduction to the business and general business environment..............................................4
2. Production cost and scale.........................................................................................................6
3. Macro Business Environment..................................................................................................7
4. Sustainability Practice of the business.....................................................................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................12

ECONOMICS ASSIGNMENT3
Introduction
One of the well-renowned Australian company Carbine Tungsten Limited (ASX: CNQ)
is listed in ASX companies (Weil & Schubert, 2013). The present name of the company is
Speciality Metals International Limited (ASX: SEI) and it specialized in the material industry.
Though, the main asset of the company is tungsten exploration but it expanded the portfolio of
exploration to lithium, iodine, potassium, gold and boron. The company continues expanding its
current portfolio and exploration capacity to be best in the materials industry (Dvořáček, et al.,
2017). The economic analysis of the company will help to prepare the business study report. It
will help to know the potential threats of the industry and how the product diversification
strategy of the company enhances its output. Despite, increasing prices of input factors and
increasing competition, the company supplies 40% of total Australia’s tungsten concentrate.
There are many big players in the domestic and international market of materials industry. The
cost structure of the company can be derived from the required of factors of production and the
nature of the factors.
Mining exploration affects the environment significantly. The production process have an
adverse effect on climate. Government took many policies and measures to mitigate the negative
externalities of production (Leal-Ayala et al., 2015). In addition, it also generate negative
externalities in the long run, where the produced goods are used. However, government of
Australia took several measures to enhance the performance of the sector. Although, the current
unemployment rate in Australia increased, but the overall growth of the economy is sustained.
Thus, the economic indicators of the nation such as GDP, interest rate or unemployment rate
may impact the growth of the mining industry.