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1301.0 - Year Book Australia, 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2003   
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Contents >> Mining >> Summary of mining operations

The term 'mining industry' is used to refer to the group of industries engaged in mining for coal, oil and gas, and metallic minerals. It does not cover other mining activities such as sand and gravel quarrying, mining for clay and other construction materials or mining for gemstones.

Table 18.13 shows that in 1999-2000 mining industry turnover was $37.1b, virtually unchanged from the previous year; value added at $24.4b was 1% higher. Employment fell by 8% (3,823 persons) to 43,477 persons between June 1999 and June 2000.

The coal mining industry continued to be the largest contributor to total turnover, accounting for 31% in 1999-2000, down from 34% in 1998-99. The oil and gas extraction industry, through significant improvements in the price of oil during 1999-2000, accounted for 28% of turnover (23% in 1998-99). The other major contributors were the gold ore mining and iron ore mining industries, which accounted for 12% and 11% of turnover respectively in 1999-2000.

Turnover in the coal mining industry decreased by $1.2b (10%) to $11.3b in 1999-2000. While coal industry producers continued to generate productivity savings through ongoing structural reform, this could not fully compensate for falling prices. Although production increased during the reference period, revenues fell. In the previous year, a falling Australian dollar had helped to offset depressed prices. However, the general stability in the currency over 1999-2000 provided no offset to falling prices in that year.

The oil and gas extraction industry recorded the largest increase in turnover in 1999-2000, rising $1.8b (21%) to $10.4b. An increase of almost $1.9b in revenue from sales of goods and services, brought about by buoyed world prices for oil, was the major contributing factor. In addition production increased as several fields came fully back on line and production commenced from the Laminaria field.

The iron ore mining industry reported a decrease in turnover of $570m (12%) to $4.1b in 1999-2000. Production of iron ore increased during the year, but lower prices emanating from the February 1999 price negotiations with the Japanese in addition to the relative stability of the Australian dollar, meant that producers did not obtain the gains of the previous year.

The completion of the Olympic Dam (South Australia) expansion and the ramping up of production of Ernest Henry mine (Queensland) resulted in increased copper production. This was reflected in an increase in the value of turnover, rising $165m (11%) to $1.6b in 1999-2000.

During 1999-2000 the gold industry experienced continued rationalisation, hedging by producers, Reserve Bank sales and a 20-year low in the price of gold. Rationalisation was marked by the entry of South African producers onto the Australian scene. In such uncertainties gold miners adopted various strategies to remain viable, ranging from staff cutting to more efficient mining techniques. There was a plethora of mine closures across the country while new developments were not as plentiful.

Table 18.14 shows that Western Australia continues to be the state with the largest mining industry. At $10.9b, Western Australia contributes almost half of the national value added by the mining industry. Queensland is next largest. The state with the highest value added per person employed in the mining industry was Victoria ($1,347,000), while Tasmania had the lowest ($166,000).


18.13 MINING, Summary of operations - 1999-2000

Inventories

Employment at 30 June(a)
Wages and salaries(b)
Turnover
Open
Close
Purchases & selected expenses
Value added
Net capital expenditure
Industry
no.
$m
$m
$m
$m
$m
$m
$m

Coal mining
17,154
1,661
11,323
830
933
5,006
6,420
525
Oil and gas extraction
4,642
434
10,427
345
359
1,234
9,206
2,208
Metal ore mining
Iron ore mining
4,791
403
4,126
440
435
1,168
2,953
55
Bauxite mining
1,565
91
1,009
87
62
269
715
160
Copper ore mining
2,005
159
1,624
224
201
727
873
514
Gold ore mining
6,240
414
4,297
503
478
2,333
1,939
521
Mineral sand mining
1,775
95
1,083
207
195
385
686
205
Silver-lead-zinc ore mining
2,811
224
1,924
135
190
669
1,309
537
Other(c)
2,494
165
1,273
387
368
915
339
652
Total
21,681
1,551
15,336
1,983
1,929
6,466
8,814
2,644
Total mining
43,477
3,647
37,086
3,158
3,221
12,706
24,440
5,377
Total mining 1998-99
45,703
3,823
37,158
3,474
3,268
12,832
24,120
7,672

(a) Includes working proprietors.
(b) Excludes amounts drawn by working proprietors.
(c) Includes Australian and New Zealand Standard Industrial Classification (ANZSIC) Classes 1316 (Nickel ore mining) and 1319 (Metal ore mining n.e.c.).

Source: Mining Operations, Australia, 1999-2000 (8415.0).


18.14 MINING, Summary of operations by state/territory - 1999-2000

Inventories

Employment at
30 June(a)
Wages and salaries(b)
Turnover
Opening
Closing
Purchases & selected expenses
Value added
Net capital expenditure
no.
$m
$m
$m
$m
$m
$m
$m

New South Wales
10,461
975
5,660
426
424
2,633
3,025
235
Victoria
2,412
161
3,642
68
53
377
3,250
439
Queensland
10,717
999
8,930
865
943
3,850
5,158
1,107
South Australia
1,564
111
1,265
89
104
332
948
530
Western Australia
15,835
1,204
15,735
1,412
1,440
4,816
10,946
2,198
Tasmania
1,103
81
514
67
69
333
183
34
Northern Territory
1,385
116
1,340
232
187
364
931
833
Australia
43,477
3,647
37,086
3,158
3,221
12,706
24,440
5,377

(a) Includes working proprietors.
(b) Excludes amounts drawn by working proprietors.

Source: Mining Operations, Australia, 1999-2000 (8415.0).


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