(MENAFNEditorial)
Australia's mining sector is set to suffer the painful spillover effects of a prolonged period of weak mineral prices in part resulting from a sharp investment slowdown in China.
Australia has been among the biggest beneficiaries of the China-led commodities boom over the past decade attracting huge amounts of investment into the minerals space. Driven by China's voracious appetite for key commodities such as coal and iron ore the value of Australia's mining industry had increased by more than six-fold from USD24bn in 2003 to USD154bn in 2013. As a result this has seen the sector's share of GDP rising from 4.5% to 10.2% over the same period. However the boom years in the mining industry are over. With China's economy on course for a continued slowdown over the coming years and mineral prices set to remain low Australia's mining sector will suffer the painful spillover effects.
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~We believe Australia will be the biggest loser from the mineral imports shift in China. The latter commands a prominent role in Australia's exports of key commodities including coal and iron ore. Already the mining sector is feeling the crunch of plummeting commodity prices as a string of miners scale back their ambitions and slam the brakes on investment. The rising tide of economic nationalism declining labour productivity and aggressive minimum wage legislation will compound the challenges in the mining industry amplifying the downshift in Australia's economy going forward. We expect the value of Australia's mining sector to reach USD191.9bn by 2019 growing at an annual average rate of 3.6% over our forecast period. This contrasts with an average growth rate of 21.5% per annum over the past decade.
~Despite the fading...
The Australia Mining Report has been researched at source and features BMI Research's mining and commodity forecasts for metals minerals and gems covering all major indicators including reserves production exports and values. The report also analyses trends and prospects national and multinational companies and changes in the regulatory environment.
BMI's Australia Mining Report provides industry strategists service companies company analysts and consultants government departments trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Australia.
Key Benefits
* Use BMI's independent industry forecasts on Australia to test other views - a key input for successful budgeting and planning in this mining market.
* Target business opportunities and risks in Australia's mining sector through our reviews of latest mining industry trends regulatory changes and major deals projects and investments in Australia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. KPIs and latest activity) Key Projects Tables and Competitive Landscape Tables.
Coverage
BMI Industry View
Summary of BMI’s key forecasts and industry analysis covering mining reserves supply demand and prices plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the mining sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Mining industry: Industry size (USDmn) real growth (%) % of GDP employment (‘000) workforce as % of total workforce average wage (USD).
* Output: Production volumes (‘000 tonnes carats etc.) for all major metals minerals ores and gems mined in each state including bauxite copper gold coal lead silver tin titanium uranium zinc etc.
* Exports: Value of exports (USDmn) for all major metals minerals ores and gems mined in each state.
* Commodity markets: Global demand supply stocks and benchmark prices (USD) for aluminium copper lead nickel tin zinc gold and steel.
BMI’s Mining Risk Reward Index
BMI’s Risk Reward Indices provide investors (mining companies and support service providers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide indices of highest to lowest appeal to investors with each position explained.
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing USD sales % share of total sales number of employees year established market cap/NAV ownership structure production and % market share.
Key Projects
Details and analysis of all current and planned developments (new ventures capacity expansion and other investments) across the sector broken down by metal/ore.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Sources
The Mining reports are based on an extensive network of primary sources such as multilateral organisations (UN WB IMF) national chambers of commerce and industry national statistical offices government ministries and central banks and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.
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