Transcript Australian Mining Industry

An overview of the Australian Mining
Industry
AMN, Thursday 10 October 2013
Australian Economy
•
The economy of Australia has a
GDP of US$1.57 trillion.
Australia's total wealth is $6.4
trillion
•
In 2011, it was the 13th largest
national economy by nominal
GDP terms and the 17th-largest
measured by adjusted GDP,
about 1.7% of the world
economy
•
The Australian economy is
dominated by its service sector,
comprising 68% of GDP
Australian Economy
•
2011 - Minerals and fuels made
up 50.6% of Australia’s trade
market, reaching $158.7b
•
2011 - Iron Ore and Coal
collectively reaching roughly
$100b in exports, nearly one
third of Australia’s export market
•
4 of the world’ s 9 most highly
rated banks are Australian
Australia & Africa
•
200+ mining companies with
over 700 projects in Africa
•
Australia is pursuing
membership with the AfDB
and African Development
Fund to support efforts in
Africa
•
Bilateral trade with Africa has
increased annually by 6% over
the past decade, currently at
$9.7b
•
Currently holds MoU’s with
South Africa, Botswana,
Mozambique, the Gambia and
Nigeria
Size of Australia’s Mining Sector
•
Australia’s mining industry has
an investment pipeline of $430
billion
•
In the 2011/2012 Financial year,
exports of Australian minerals
(excluding oil and gas) reached
roughly A$164 billion
•
The Australian mining industry
accounts for between 8 – 10 %
of GDP
Size of Australia’s Mining Sector (Cont.)
•
The Australian mineral industry,
in recent years, has accounted
for around 50% of national
exports
•
It has also accounted for 20% of
business investment
•
Mining (inclusive of oil and gas)
R&D expenditure has more than
doubled in the past decade,
reaching $4.1 billion in the
2011/2012 FY
Mining Sector Breakdown
•
Australia has the worlds largest
reserves of brown coal, mineral
sands, nickel, lead, uranium, iron
ore and zinc
•
Also holds the worlds second
largest reserves of bauxite and
tantalum
•
Australia is currently home to the
world’s third largest reserves of
copper
Mining Sector Breakdown (Cont.)
•
Australia holds the World’s fourth
largest reserves of silver
•
Direct employment in the mining
industry in August 2013 was
249,000
•
95% of workers in the industry
are full time employees
•
Australia may hold the largest
reserves of certain minerals,
however it may not be the largest
producer
Mining Sector Breakdown (Cont.)
•
Largest private sector employer
of indigenous Australians
•
As at May 2013 average full time
earnings was $2, 477 per week
•
Since 2001-02, more then $145
billion payed in company income
tax and royalties
Markets Supplied – Asia Pacific
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Due to Australia’s geographical
location, it is in a prime position to
supply the Asian market
•
China, Japan, South Korea and
India are the main markets
Australian mining supplies
•
Very important markets to be able
to supply, with their large
populations, these countries are
large scale consumers of minerals
(especially coal and iron ore)
•
Important consumer with the
coming of the “Asian Century” as
these countries are becoming
economic superpowers (primarily
China)
Australian Mining Sector Challenges
•
High input costs involved in
mining in Australia
•
Mineral resources tax and
carbon tax directly impact
mining industry
•
Company income tax and
royalties already equal $20
billion a year not including the
mineral resources tax and
carbon tax
•
High industry costs also
making trade with Australian
minerals less attractive