Group Report: Analysis of the Australian Mining Industry (HI5003)

This report provides an analysis of the Australian mining industry, examining its significance to the Australian economy, contributing 7% of the GDP. It details the industry's key products, including iron ore, thermal coal, and natural gas, and highlights the dominance of companies like Rio Tinto and BHP Billiton. The report discusses the resource boom from 2003 to 2016, driven by increased demand from China, and explores the industry's problems, such as stringent excavation laws and declining export demand. It also assesses the impact of these issues on the Australian economy, including increased unemployment and economic slowdown. The report suggests government policies to improve the industry's condition and, consequently, the economy, such as relaxing excavation laws and promoting related industries. References from Global Mining Review and the Reserve Bank of Australia are included.

AUSTRALIAN MINING INDUSTRY

Importance Of The Industry
7% of Australian GDP is contributed by the mining industry
(Globaltenders.com, 2019)
40% of mining product is consumed domestically and 60% is
exported
Currently, above 1 lakh 30 thousand people work in mining
industry
Mining products worth $248 billion were exported in 2018
(Global Mining Review 2019)

Details Of Mining Industry
Iron ore, thermal coal and natural gas are the major product
of the industry
The industry grew from the time of gold rush in Australia
Rio Tinto and BHP Billiton are the dominant companies in the
industry
Few companies dominate the industry
It is an oligopoly in nature

Resource Boom
Resource boom started in Australia in 2003 and ended in
2016
The boom occurred due to rise in production of the industry
and increased demand for mining products especially iron ore
from China
Investment in the mining industry was 8.5% during resource
Increase in per capita income was 13%(rba.gov.au 2014)

Problems Of The Industry
Lack of mines and stringent mine excavation laws
Low yield from existing mines
Export demand for mining products declined significantly
The companies in the mining industry is struggling to recruit
enough employees

Effect On Economy Of Australia
Unemployment rate increased significantly
Slowdown in economy of Australia
Fall in income of individuals
Dependent industries were impacted by the decline in the
mining industry
Economic stagnation occurred in Australia

Government Policies
Government should relax the laws regarding excavation for
discovery of new mines
Improved and new technologies should be introduced in the
mining industry
Promotion of industries that depends on the product of the
mining industry
The policies would improve the condition of the mining
industry and thereby economy of Australia would also
improve

References
Global Mining Review (2019). Australia’s mining industry set export record in
2018. [online] Global Mining Review. Available at:
https://www.globalminingreview.com/trade-transport/05022019/australias-
mining-industry-set-export-record-in-2018/ [Accessed 5 Aug. 2019].
Rba.gov.au (2019). The Effect of the Mining Boom on the Australian Economy.
[online] Rba.gov.au. Available at:
https://www.rba.gov.au/publications/bulletin/2014/dec/pdf/bu-1214-3.pdf
[Accessed 5 Aug. 2019].
Globaltenders.com (2019). Australia Economy Australian Economy, business
opportunities in Australia government Australia business opportunities import
and export opportunities. [online] Globaltenders.com. Available at:
https://www.globaltenders.com/economy-of-australia.php/ [Accessed 5 Aug.
2019].

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