Mining Industry and Resource Boom

Mining Industry and Resource
Boom
Name of the Student
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Course ID

Introduction
• Australia Mining
• Important primary sector
• Contribute to GDP, employment and export earning
• Iron ore, Nickel, Copper, Aluminium, Gold, Copper, Silver, Uranium, Diamond,
Zinc, Opal and
• Resource boom since 2003.
• Terms of trade, exchange rate and increase in export demand
• Impact on Mining industry
• Impact on Australian economy

Background of Mining Industry
• Most well-established sector
• Accounts 7% of GDP
• Largely export oriented sector
• 50-60 percent of national export
• iron ore, gold, lead, nickel and zinc
• Western Australia, Queensland and NSW
• Value increased from $24 billion to $147 billion
• Expansion of mineral export
• Main export are coal and iron ore Figure 1: Value of
mining industry

Market Structure of Mining
Industry
• Highly concentrated market
• Oligopolistic in nature
• Dominance of few large companies
• BHP Billiton, Rio Tinto, Xtrata, Shell, Woodside Petroleum
and Chevron
• Other small companies
• Similar to oligopoly market.