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1301.0 - Year Book Australia, 2006  
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Contents >> Chapter 16 - Mining >> Structure and performance of the mining industry

STRUCTURE AND PERFORMANCE OF THE MINING INDUSTRY

The source for the statistics in this section is the annual Economic Activity Survey (EAS) of businesses conducted by the Australian Bureau of Statistics. Businesses in this collection are classified on the basis of their predominant activity, using the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition (1292.0). The industry subdivision 'Other mining' refers to construction material mining and mining n.e.c. as described in ANZSIC.

From 2001-02, estimates from the EAS have been compiled using new statistical infrastructure. This new infrastructure makes better use of data available from the taxation system. As a consequence of this new infrastructure, a new statistical series has commenced from 2001-02, covering non-employing as well as employing businesses. More details are provided in Mining Operations, Australia, 2001-02 and 2002-03 (8415.0).

In 2002-03 mining businesses paid $6,694m in wages and salaries and generated $63,473m in sales and service income and $37,644m industry value added (table 16.5). The net worth of the mining industry was $60,938m.

Table 16.5 shows that in 2002-03, the Oil and gas extraction industry contributed the largest proportion (41%) of total mining production measured in terms of industry value added, followed by Metal ore mining (26%) and Coal mining (22%). The Oil and gas extraction industry also accounted for the largest share of net worth (45%) valued at $27,173m, and generated the most profit (52%, $8,658m) in 2002-03.

Industry value added (IVA) represents the value added by an industry to the intermediate inputs used by the industry. It measures production in much the same way as industry GVA. However, unlike industry GVA (the national accounts concept of production), IVA is not adjusted for a number of national accounting conventions, as the information to make these adjustments cannot be collected in the EAS. The advantage of IVA, however, is the availability of more detailed industry and state estimates.

In terms of wages and salaries, the largest contributors were the Metal ore (29%) and coal (29%) Mining industries. The wages and salaries paid were $1,945m from the metal ore mining industries and $1,929m from the coal mining industry.

Within the Metal ore mining industry, the Gold mining industry contributed the largest share of wages and salaries (34%) and sales of goods and services (31%).

16.5 SUMMARY OF OPERATIONS - 2002-03

Inventories

Wages
and salaries(a)
Sales of goods and services
Operating profit
before tax
Opening
Closing
Purchases and
selected expenses
Industry
value
added
Net worth
Mining industry subdivision
$m
$m
$m
$m
$m
$m
$m
$m

Coal mining
1,929.1
16,868.2
3,660.8
1,151.4
1,197.9
9,262.4
8,253.7
11,822.2
Oil and gas extraction
778.7
17,225.0
8,657.9
480.7
506.7
2,708.3
15,263.3
27,172.7
Metal ore mining
Iron ore mining
499.6
5,306.5
2,140.5
469.7
475.2
1,929.6
3,778.9
6,953.4
Copper ore mining
210.8
2,223.2
185.2
332.9
326.7
1,465.8
824.6
2,619.9
Gold ore mining
670.1
5,931.9
561.0
498.1
527.9
3,814.3
2,717.9
5,749.8
Mineral sand mining
108.1
868.8
96.0
208.1
163.0
487.4
369.4
659.7
Silver-lead-zinc ore mining
216.2
1,774.9
-161.6
137.4
115.6
1,159.4
678.7
852.6
Bauxite mining, nickel ore mining and metal ore mining n.e.c.
239.7
2,749.8
926.4
389.0
406.6
1,606.1
1,366.7
243.3
Total
1,944.5
18,855.1
3,747.5
2,035.2
2,015.0
10,462.7
9,736.2
17,078.6
Other mining
479.4
3,995.5
751.6
377.8
394.9
2,203.6
1,940.5
2,624.3
Services to mining
1,562.4
6,529.5
-81.6
253.0
255.3
4,668.9
2,450.7
2,239.8
Total mining
6,694.1
63,473.3
16,736.2
4,298.1
4,369.7
29,305.9
37,644.4
60,937.6

(a) Excludes the drawings of working proprietors.

Source: Mining Operations, Australia, 2001-02 and 2002-03 (8415.0).


Table 16.6 shows that capital expenditure in 2002-03 was the largest in the Metal ore mining industry (38%) followed by the Oil and gas extraction industry (31%). Most of the capital expenditure on acquisitions was spent on plant, machinery and equipment (54%). A significant proportion (45%) was also spent on dwellings, other buildings and structures. The Metal ore mining industry accounted for the largest share of the expenditure in plant, machinery and equipment, while the Oil and gas extraction mining industry accounted for the largest share of the expenditure in dwellings, other buildings and structures.


The Metal ore mining and Oil and gas extraction industries contributed most of the net capital expenditure i.e. capital expenditure after deducting disposals of assets. Combined these industries accounted for 75% of total net capital expenditure made in 2002-03.

16.6 FIXED CAPITAL EXPENDITURE AND DISPOSALS - 2002-03

Capital expenditure on

Land
Dwelling, other buildings and structures
Plant,
machinery
and equipment
Total
acquisitions
Disposal
of assets
Net capital
expenditure
Mining industry subdivision
$m
$m
$m
$m
$m
$m

Coal mining
46.9
615.6
1,598.7
2,261.2
514.9
1,746.2
Oil and gas extraction
2.9
2,567.1
503.5
3,073.4
282.8
2,790.7
Metal ore mining
Iron ore mining
3.0
63.2
1,781.9
1,848.1
18.9
1,829.2
Copper ore mining
-
132.6
226.1
358.7
3.4
355.3
Gold ore mining
7.8
718.2
289.3
1,015.3
43.9
971.4
Mineral sand mining
3.5
16.5
60.7
80.7
6.4
74.3
Silver-lead-zinc ore mining
-
154.4
64.3
218.8
2.0
216.7
Other(a)
3.1
147.4
144.0
294.5
13.1
281.5
Total
17.3
1,232.4
2,566.4
3,816.1
87.7
3,728.3
Other mining
8.1
24.6
189.0
221.7
125.0
96.7
Services to mining
5.6
25.5
541.0
572.1
295.6
276.6
Total mining
80.9
4,465.2
5,398.5
9,944.5
1,306.0
8,638.5

(a) Comprises bauxite mining, nickel ore mining and metal ore mining n.e.c.

Source: Mining Operations, Australia, 2001-02 and 2002-03 (8415.0).


Operating profit before tax (OPBT) is a measure of profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid).


From 2001-02 to 2002-03, OPBT for the mining industry increased by 27% (up $3,586m). The Metal ore mining industry was the main contributor to this rise (up $4,181m). In the Metal ore mining industry, OPBT for the combined industry, bauxite mining, nickel ore mining and metal ore mining n.e.c. increased by $3,796m, the largest recorded during this period. This was a major turnaround from 2001-02 when the industry suffered a loss of $2,870m.

OPBT for most other industries was lower in 2002-03 compared with 2001-02 with the Coal mining industry down 7% ($282m), Oil and gas extraction down 3% ($280m) and Services to mining down by $60m to be the only subdivision within mining to record a loss.

16.7 OPERATING PROFIT BEFORE TAX

2001-02
2002-03
Change from
2001-02 to
2002-03
Mining industry subdivision
$m
$m
%

Coal mining
3,942.4
3,660.8
-7.1
Oil and gas extraction
8,938.3
8,657.9
-3.1
Metal ore mining
-433.9
3,747.5
963.7
Other mining
724.7
751.6
3.7
Services to mining
-21.3
-81.6
-283.1
Total mining
13,150.2
16,736.2
27.3

Source: Mining Operations, Australia, 2001-02 and 2002-03 (8415.0).


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