Cutting-edge technology at work in global operations
Thanks to abundant mineral resources, skilled industry professionals, advanced extraction processes and cutting-edge technology, Australia is a leader in the global mineral industry. Australia has the world’s largest reserves of lead, nickel, uranium and zinc. It is the world’s largest producer of bauxite and alumina (using the Economic Demonstrated Reserves (EDR) measure) the second largest producer of zinc ore and nickel, and the third largest producer of iron ore and gold.
Mining and minerals activity currently comprises approximately eight per cent of the Australian economy, and 40 per cent of exports. The sector is expanding, driven primarily by huge demand for raw materials from China and other parts of Asia. Earnings from Australia’s mineral resources exports increased by 11 per cent to $116 billion in 2007-08, (Source: Australian Bureau of Agriculture and Resource Economics, Australian mineral statistics, June Quarter 2008) partly owing to a 25 per cent rise in export prices (these factors helped off-set a 14 per cent fall in the value of the Australian dollar).
The scale of our resource industry has helped Australia become a world leader in the development and manufacture of mining equipment, technology and services (METS). Australian firms are competitive right across the supply chain, which includes exploration, engineering, minerals processing, environmental management, mine safety, R&D and training.
For example, Australian companies design and manufacture large capital items such as mining trucks. Australian developed mining software plays a prominent role in the planning and development of mines around the world. In total the METS sector generates sales of A$12 billion annually, and A$2.5 billion worth of exports.
Successful R&D in sectors such as radar exploration and minerals analysis has given birth to firms that now export niche technologies. As a result, the resources sector is one of the leading stimulants for R&D in the Australian economy, and foreign investors are increasingly focused on the potential for innovation as well exploration.
The Australian resources sector
| Commodity |
Reserves (Economic demonstrated reserves measure) |
Production 2007–08 (Total metallic content of minerals produced) |
Change in production |
Production world rank (2005 production figures) |
Change in export value (% change 2007–2008) |
| Bauxite |
7.8Gt |
63,131Kt |
0.7% |
1 |
+35% |
| Alumina |
|
19,359Kt |
4.6% |
1 |
-7% |
| Black Coal |
39.1Gt |
325 |
0.3% |
4 |
+23% (figure for thermal coal) |
| Copper |
42.4Mt |
862 Kt |
0.3% |
5 |
+3% |
| Gold |
5,225t |
227t |
-8.8% |
2 |
+6% |
| Iron Ore |
16.4Gt |
8,128Mt (iron and steel) |
1.4 % |
3 |
-10% (iron and steel) |
| Lead |
23.8Mt |
641Kt |
-0.2 % |
2 |
+33% |
| Nickel |
23.9Mt |
190Kt |
-0.2% |
2 |
-33% |
| Silver |
44Kt |
1867t |
11.5% |
4 |
-15% |
| Uranium Oxide |
716Kt |
10,151t |
5.8% |
2 |
+34% |
| Zinc |
42Mt |
1,571t |
14.3% |
2 |
-22% |
|