Minerals Council of Australia
The Australian Minerals Industry
and the Australian Economy
March 2010
Industry Definition and Contribution
The Australian minerals industry is defined as covering the exploration and mining of minerals (including coal)
and the associated minerals processing industry. The Minerals Council of Australia, in representing the industry
nationally and internationally, is committed to contributing to the sustained growth and prosperity of current and
future generations through the integration of sound financial management, responsible social development and
effective environmental management.
Financial 2009–10 (f)
% of GDP
Employment
- direct (Feb 2010)
- indirect (est)
% Growth in capital
investment 08/09
Value
8%
158,000
505,600
30 %
$35b
$Ab
• coal & uranium
35.6
• other minerals
29
44.4
Total
• % of total exports
• Largest employer of environmental
• More than 420 Indigenous Land
• Accounts for 3% of national water
use with an economic value added of
between $86,000/ML and $25,000/ML
• Mining sites disturb <0.26% of
Australia’s land mass and in 2007–08
the industry is forecast to spend
more than $200 million annually on
rehabilitation of disturbed lands
• Accumulated provisions of nearly $3.5
billion for rehabilitation
• Mining services
Equipment
Social
professionals
Exports
• iron ore
Environmental
2.5
111.50
48%
Agreements across 200 operations
Largest private sector employer of
Indigenous Australians.
• Companies contributed more than
$7 billion in royalties as a part of
$21 billion in State and federal
taxes in the 2008/9 financial year
- almost 50 per cent more than
2007/8.
• Invest more than $10 million on
primary, secondary and tertiary
education.
• From one of the worst industrial
safety records of any sector to
one of the best. Our goal of zero
fatalities and injuries remains
our number one value and
commitment.
Exploration
Production
The Australian minerals sector is in
the top five producers of most of the
world’s key minerals commodities
including:
$Millions
• The world’s leading producer of bauxite,
alumina, rutile, and tantalum;
• The second largest producer of lead,
ilmenite, zircon and lithium;
• The third largest producer of iron ore,
uranium, and zinc;
• The fourth largest producer of black
coal, gold, manganese and nickel; and
Minerals exploration generally improved across most commodities
over 2009 including base metals such as nickel and cobalt, as well as
gold and coal. There were slight declines at the end of 2009 for iron
ore, minerals sands, uranium and diamonds. Both spending and metres
drilled lifted across 2009 after declines from the middle of 2008.
• The fifth largest producer of aluminium,
brown coal, diamonds, silver and copper.
ACN 008 455 141
ABN 21 191 309 229
The Australian Minerals Industry
and the Australian Economy Factsheet
Mining 2009–10 (f)
Minerals Processing
Production
‘000t
Exports
$A billion
Bauxite
66,200
0.162
Smelting and Refining
Alumina
20,204
4.624
Alumina
890
4.026
0.2416
Production
‘000t
Exports
A$ billion
20,204
4.624
Aluminium
1920
3.732
14.702
Refined Copper
427
2.148
423,900
29036
Lead Bullion
148
0.545
648
0.783
Refined Lead
208
0.561
5,865
1.357
Refined Zinc
523
1.071
Nickel
177
3.035
Refined Nickel
128
Silver
1.737
0.294
Export receipts in
nickel mining revenue
Mineral sands
3,276
1.719
Refined Silver
0.774
0.294
Zinc
1,336
1.128
551
0.267
Coal thermal
213,000
11.138
Coal metallurgical
158,000
23.490
8.973
0.981
Copper
Gold
Iron ore
Lead
Manganese
Uranium
Synthetic Rutile
Source: ABARE, Australian Commodities, 2010
Australian Economic Demonstrated
Resources For Selected Minerals
Mineral
1995
2008
Gt
2.5
6.2
Black coal
(recoverable) Gt
49.0
39.2
Brown coal
(recoverable) Gt
41.0
37.2
24
77.9
Bauxite
Copper
Mt
Gold
t
4260
6255
Iron Ore
Gt
17.8
24
Lead
Mt
18.2
26.8
Nickel
Mt
3.7
26.4
Silver
kt
41.5
61.4
Uranium
kt
629
1163
Zinc
Mt
38.8
42.5
• In 2009/10 mineral resource exports (including metallurgical
coal) are forecast to be around $109 billion or around 67 per
cent of Australia’s total commodity trade
• Over the five years to 2009/10 all minerals exports will have
totalled $495 billion
Source: Geoscience Australia
PAGE | 2 | www.minerals.org.au
Commodity outlook
The Australian Minerals Industry
and the Australian Economy Factsheet
Major Australian commodity exports
Major Australian commodity exports
World
forfor
all all
commodities
except
beef
andbeef,
veal and
whichwhich
are in are
$A. in $A. For export
Worldprices
pricesare
areininUS$
US$
commodities
except
wool,
vealwine
and wine
For
export
value,
annual are
forecasts
are of
thequarterly
sum of quarterly
As aannual
result, annual
averages
for export
value,
annual
forecasts
the sum
forecasts.forecasts.
As a result,
averages
for export
valuesvalues
do
do
not
necessarily
reflect
variations
in
export
volumes,
world
prices
and
exchange
rates.
not necessarily reflect variations in export volumes, world prices and exchange rates.
2009–10 f
2010–11 f
2010–11
world
volume price value
value
A$29.0b
A$35.1b
iron ore and pellets
A$23.5b
A$30.5b
metallurgical coal
A$14.7b
A$16.7b
gold
A$11.1b
A$12.8b
thermal coal
A$9.0b
A$10.1b
crude oil
A$7.2b
A$7.7b
LNG
A$6.2b
A$6.8b
copper
A$4.6b
A$5.7b
alumina
A$3.7b
A$4.1b
aluminium
A$4.2b
A$4.1b
beef and veal
A$4.0b
A$3.8b
wheat
A$3.0b
A$3.5b
nickel
A$2.2b
A$2.6b
zinc
A$2.4b
A$2.5b
wine
A$1.9b
A$2.4b
lead
A$1.7b
A$2.3b
titanium and zircon
$b
10
20
30
2%
na
21%
2%
na
30%
19%
-6%
13%
6%
na
15%
4%
5%
12%
4%
na
7%
3%
11%
10%
7%
4%
23%
2%
7%
10%
2%
-3%
-2%
0%
-6%
-4%
2%
13%
16%
-1%
11%
16%
4%
0%
5%
13%
11%
26%
32%
-1%
32%
+
na
+
+
40
Source: ABARE, Australian Commodities, 2010
Australian commodities • vol 17 no 1 • March quarter 2010
PAGE | 3 | www.minerals.org.au
19
Markets for Australian exports
in 2008-09 dollars
Australian1998-99
Minerals
The
Industry
Total the Australian
$117.5bEconomy Factsheet
and
Japan
19%
2008-09
$230.7b
China
7%
Republic of Korea
United States
9%
United States
5%
New Zealand
7%
New Zealand
4%
2%
India
7%
other
37%
China
6%
Japan
17%
ASEAN
16%
the second largest exporter of:
the third largest exporter of:
•uranium.
1998-99
Total
Energy
$117.5b
$19.7b
15%
European Union 27 11%
Middle East
8%
in 2008-09 dollars
United States
7%
other
20%
Japan
Japan
China
19%
42%
5%
other
$32.1b
5
$31.5b
$34.4b
Energy
Contribution
to
$19.7b
Manufacturing
$28.0b
China
China
Japan
Thailand
ASEAN
India
other Asia
Japan
European Union 27
Republic of Korea
Middle East
other Asia
United
States
European
Union 27
other
other
Japan
China
Republic of Korea
Chinese Taipei
Proportion of Japan
Republic of Korea
India
merchandise exports
New Zealand
other Asia
European Union 27
2008-09
European Union 27
other
rural a United States
other
merchandise
14.7% other
16.2%
$34.4b
merchandise
20.1%
Manufacturing
$28.0b
China
mineral
Thailand
resources
India
69.1%
Australian
commodities
Japan
Republic of Korea
Source: ABARE, Australian Commodities, 2010
other Asia
2007-08
European Union 27
rural a
other
other
16.4%
10%
Japan
16%
ASEAN
19%
European Union 27
Middle East
2008-09
$230.7b
$77.9b
$32.1b
$83.6b
20%
31%
42%
4%
11%
7%
7%
4%
5%
20%
7%
20%
11%
23%
17%
22%
8%
11%
United States
10%
other
13%
Japan
Japan
China
Republic of
of Korea
Korea
Republic
ChineseStates
Taipei
United
23%
42%
17%
14%
8%
5%
5%
India Zealand
New
other
India Asia
European Union
Union 27
27
European
other
other
9%
4%
13%
7%
7%
10%
10%
26%
China
China
Japan
Thailand
ASEAN
India
other Asia
Japan
European Union 27
Republic of Korea
Middle East
other Asia
United States
European
Union 27
other
other
10%
33%
16%
3%
19%
8%
13%
13%
8%
7%
11%
8%
10%
12%
13%
16%
$33.0b
Japan
China
Republic of Korea
Japan
Chinese
Taipei
Proportion of
exports
Republic of Korea
India
of goods and
services
New Zealand
other Asia
European Union 27
European
rural
a Union 27
services
United States
other
11.9%
18.7%
other
other
$83.6b
21.3%
42%
8%
14%
7%
5%
2%
9%
17%
13%
17%
7%
20%
10%
29%
mineral
merchandise
5%
China resources
13.2%
56.2%
2%
Thailand
2%
India
• vol 17 no 1 • December quarterJapan
2010 233
16%
11%
Republic of Korea
20%
other Asia
13%
European
rural a Union 27
services
31%
other
12.8%
21.8%
$33.0b
other
rural a
13%
Exports
China
4%
merchandise
15.7%
Japan
7%
mineral
resources
Republic of Korea 4%
63.5%
New Zealand
20%
European Union 27 20%
United States
23%
PAGE2006-07
| 4 | www.minerals.org.au
other
22%
services
other
China
exports by sector, balance of$77.9b
payments basis
Australia
Minerals
6%
5%
17%
2%
16%
2%
15%
16%
11%
11%
8%
20%
7%
13%
26%
Export
markets
other
Asia
Republicof
of Korea
Korea 11%
Republic
7%
Chinese
Taipei
7%
United
States
9%
India
5%
New Zealand
7%
other Asia
7%
India
2%
EuropeanUnion
Union27
27 11%
European
14%
other
17%
other
37%
Agriculture
Minerals
8%
European Union 27 10%
other Asia
Markets for Australian exports
17%
5%
Republic of Korea
European
14%
•alumina; •metallurgical coal; •iron
ore;Union
and 27
•lead;
Agriculture
23%
China
Australia is the largest exporter of:India
$31.5b
•thermal coal and •zinc
Japan
mineral
China
resources
Japan 49.7%
Republic of Korea
New Zealand
European Union 27
United States
other a
rural
14.1%
33%
3%
8%
13%
7%
8%
12%
16%
8%
7%
2%
17%
17%
20%
29%
The Australian Minerals Industry
and the Australian Economy Factsheet
Investment
Major development projects – October 2009 listing abare.gov.au
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Another significant LNG project on the list is Woodside’s Pluto LNG project, which has an
announced
capital
cost of $12
This
projectreports
will have
annual
productionprojects
capacity
of
The Australian
Bureau
of Agricultural
andbillion.
Resource
Economics
twiceanyearly
on development
in the
4.3 million
ofThe
LNG
andrecent
is scheduled
for projects
completion
in late
Australian
mineralstonnes
industry.
most
report covers
that have
been2010.
‘completed’ between April and
October 2009, those that are ‘advanced’ (either committed or under construction) and those that are ‘less advanced’ (no
Tendecision
other has
petroleum
developments
further $15.7
in study).
capital expenditure. In
definite
been taken
on developmentaccount
followingfor
theacompletion
of a billion
feasibility
2008,October
the North
Shelfminerals
Joint Venture
(Woodside,
BHP
Billiton,
Shell, Chevron,
In theDecember
six months ended
2009,West
15 major
and energy
projects with
a capital
expenditure
of $3.8 BP
billion
and
Japan
Australia
LNG)
approved
the
US$1.5
billion
NWS
CWLH
project.
The
project
allow
were completed. A further 74 projects were at an advanced stage, with total projected expenditure of $112will
billion.
Coal
and related
infrastructure
projects made
15 Cossack,
of the advanced
projects
with expenditure
of $38
billion
while2013.
other
for continued
production
fromupthe
Wanea,
Lamarina
and Hermes
fields
beyond
minerals
projects were
worth $62.6
completion
these
projects
is expected
to result
in increased
production
A significant
proportion
ofbillion.The
the investment
willofbe
spent
on the
purchase
of a new
floating
and export
capacity
for
a
range
of
commodities
including
coal,
petroleum,
iron
ore,
gold,
minerals
sands,
nickel,
copper
production, storage and offtake vessel.
and zinc.
ThereThe
are aNorth
furtherWest
267 less
advanced
projects worth
billion.
Shelf
Joint Venture
is also$238
undertaking
the US$5.1 billion North Rankin B
project
in Western
Australia,
which
is dueduring
for completion
2012.
significant petroleum
Spending
on exploration
reached
a record
$6 billion
2008/9, a teninper
centOther
increase.
projectsprojects
include:
US$1.7
billion
Pyrenees oil field, in Western Australia which is
The advanced
arethe
shown
on the
abovejoint
map venture
of Australia.
scheduled for completion in early 2010; the US$1.3 billion Turrum natural gas and condensate
field in Bass Strait due for completion in 2011; and the US$1.1 billion Kipper gas and condensate
field off the coast of Gippsland, also scheduled for completion in 2011.
8
PAGE | 5 | www.minerals.org.au
The Australian Minerals Industry
and the Australian Economy Factsheet
Mineral resource prices to end 2009
US$/oz Gold USc/oz 1200 Silver 2500 1000 2000 800 1500 600 1000 400 500 200 0 0 US$/t Copper US$/t 10000 4000 8000 3000 6000 Lead 2000 4000 1000 2000 0 0 US$/t Aluminium US$/t 4000 60000 3000 45000 2000 30000 1000 15000 Nickel 0 0 PAGE | 6 | www.minerals.org.au
The Australian Minerals Industry
and the Australian Economy Factsheet
US$/t US$/t US$/t Zinc Zinc Zinc Tin Tin Tin US$/t US$/t US$/t 5000 5000 5000 4000 4000 4000 30000 30000 30000 25000 25000 25000 20000 20000 20000 15000 15000 15000 3000 3000 3000 2000 2000 2000 10000 10000 10000 5000 5000 5000 1000 1000 1000 0 0 0 0 0 0 EUV A$/t EUV A$/t EUV A$/t Metallurgical coal Metallurgical coal Metallurgical coal US$/t US$/t US$/t 450 450 450 400 400 400 350 350 350 300 300 300 250 250 250 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 Thermal coal Thermal coal Thermal coal Newcastle spot Newcastle spot Newcastle spot Japan contract Japan contract Japan contract 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 US$/t US$/t US$/t Iron
ore re Iron
Iron
o ore Indian spot Indian Indian spot spot Japan contract Japan Japan contract contract 250 250 250 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 Jun-­‐09 Jun-­‐10 Jun-­‐10 Jun-­‐11 Jun-­‐11 Jun-­‐12 Jun-­‐12 Jun-­‐13 Jun-­‐13 Jun-­‐09 Jun-­‐09 Jun-­‐10 Jun-­‐11 Jun-­‐12 Jun-­‐13 Sources: ABARE, BARE, Reuters euters Sources: Sources: AABARE, RReuters PAGE | 7 | www.minerals.org.au