MIXED OUTLOOK FOR MINING SECTOR

Written on the 12 November 2013

MIXED OUTLOOK FOR MINING SECTOR

BIS Shrapnel has expressed confidence in the future of mining in Australia, despite forecasting a decline in employment figures across the sector.

In its Mining in Australia 2013 to 2028 report, the independent economic forecaster and industry analyst said that mining production growth will compensate for a fall in mining investment, which peaked in 2012/13.

The latter is forecast to decline 20 per cent over the next five years, while production is predicted to grow 41 per cent over the same period.

“Over the next five years, the strong boost from mining production, led by LNG and iron ore, will more than offset the economic negatives from falling mining investment which will flow through to construction and manufacturing,” says senior manager of BIS Shrapnel’s infrastructure and mining unit Adrian Hart.

Hart says mining activity as a share of GDP is anticipated to rise from 18.7 per cent to 19.8 per cent as a result of this production increase.

“Australia will become a more mining-focused economy from here.”

However, production growth isn’t expected to boost employment, as mining operations opt for cost reduction strategies.

Hart says the approach is based on predicted lower commodity prices and a higher Australian dollar over the next few years.

“Mining operations are going to extraordinary lengths to cut back on the high costs / low productivity culture combination which characterised the construction phase of the boom,” he says.

“We expect that employment will rise only 11 per cent over the next five years across these operations, mainly in oil and gas and iron ore, whereas mining construction employment will slump 40 per cent.”

The annual BIS Shrapnel study is unique in reporting market information and forecasts for mineral and energy commodity markets and activities undertaken at each stage of the mining life cycle.


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter