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8415.0 - Mining Operations, Australia, 2000-01  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 02/10/2002   
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FINANCIAL OPERATIONS


INTRODUCTION


Statistics in this Chapter are presented at the management unit level and therefore can contain data about activities normally associated with industries other than mining (see paragraphs 11-15 of the Explanatory Notes for further detail).

The commentary refers to summary tables 1.1-1.3, while more detailed tables appear at the end of this Chapter. The Glossary provides definitions for the terms used.


SUMMARY


The following summary relates to all subdivisions of the mining industry as defined by the Australian and New Zealand Standard Industrial Classification (ANZSIC).

ABARE's Australian Mineral Statistics, reported that the much stronger performance of the mining industry in 2000-01 reflected significantly higher export prices and volumes for the majority of minerals and energy commodities. In particular, average oil and gas export unit prices increased by between 31% and 40%. Many Australian producers were able to sell oil consistently above $50 per barrel (Register of Australian Petroleum 2001). For a number of other minerals (coal, iron ore, zinc and zircon), export unit prices rose by between 15% and 23%. The higher export prices were in part due to the weaker Australian dollar in 2000-01 which assisted Australian mineral producers in generating higher revenue. Many contracts are written in US dollars and this assisted some commodity prices in Australian dollars, such as for gold and nickel, to rise during 2000-01 after reaching low points during 1998-99. Between 1999-2000 and 2000-01, the US dollar value for the London fix price for gold and London Metal Exchange cash price for nickel fell by 4% and 12% respectively while the prices of these commodities in Australian dollars increased by 12% and 2%. Revenue from copper and notably crude oil increased not only due to the favourable exchange rate but also an increase in US dollar prices of these commodities. Hence, the high grade copper price in Australian dollars rose by 20% and the crude oil price (world trade weighted average) rose by 30%.

Graph - Selected indicators, coal mining oil and gas extraction and Metal ore mining(a)



These price increases contributed to the rise in sales of goods in most sectors of the mining industry which in turn resulted in higher industry value added (IVA), trading profit, earnings before interest and tax (EBIT) and operating profit before tax (OPBT).

In the gold industry, production costs decreased with considerable corporate restructuring as well as increases in productivity.

The Australian mining industry continued to seek productivity gains through improved work practices and use of technology. The reference year has again seen high cost mines close and several new efficient operations come on stream.

Graph - Selected indicators, coal mining oil and gas extraction and metal ore mining(a)



SALES OF GOODS AND SERVICES


Sales of goods and services for all mining was $54.0b in 2000-01, an increase of $12.3b (29%) over the previous year. Sales of goods and services for the traditional mining industries of coal mining, oil and gas extraction, and metal ore mining increased by $12.0b (32%) to $49.4b in 2000-01.

Sales of goods and services for the coal mining industry increased by $1.1b (10%) to $11.7b as coal producers increased production in line with higher prices. Improved prices and increases in production resulted in a $7.8b (70%) increase in the value of sales of goods and services for the oil and gas extraction industry to $18.9b.

Sales of goods and services for the metal ore mining industry increased by $3.1b (20%) to $18.8b predominantly in the iron ore, copper ore and nickel ore mining industries. The continued restructuring of the gold ore industry, the closure of high cost gold mines as well as older mines coming to the end of their mine life led to a decrease in the value of sales of goods and services by $219m (4%) to $4.7b.

Other mining experienced a $582m (24%) drop to $1.8b in the value of sales of goods and services over the previous year. This was predominantly caused by restructuring within the industry.

Within the services to mining industries, sales of goods and services increased by $896m (47%) to $2.8b during the reporting period.


INDUSTRY VALUE ADDED


In value terms, national production as measured by IVA, increased by $9.5b (39%) to $34.0b in 2000-01. IVA for the coal mining, oil and gas extraction, and metal ore mining industries increased by $9.8b (44%) to $32.1b.

The oil and gas extraction industry was the most significant contributor to IVA recording a value of $16.9b, an increase of $7.2b (74%). IVA for the coal mining industry increased by $727m (15%) to $5.6b as did the metal ore mining industries which increased by $1.9b (25%) to $9.6b.


TRADING PROFIT


Total trading profit for the mining industry in 2000-01 was $32.0b, an increase of $9.3b (41%) over the previous year. For the coal mining, oil and gas extraction and metal ore mining industries trading profit rose by $9.7b (46%) to $30.5b.

The coal mining industry recorded an increase in trading profit of $798m (17%) rising to $5.4b in 2000-01. The oil and gas extraction industry recorded an increase in trading profit of $7.1b (77%), rising to $16.3b. Increases in prices as well as production levels in the coal mining industry and the oil and gas extraction industry contributed to the increases in trading profit.

Improved prices for a number of commodities as well as increases in production assisted the metal ore mining industry achieve an increase in trading profit of $1.8b (26%) to $8.9b in 2000-01.


EARNINGS BEFORE INTEREST AND TAX


EBIT increased nationally by $8.4b (87%) to $18.2b for all mining industries. EBIT in the coal mining, oil and gas extraction and metal ore mining industries increased by $9.2b (100%) to $18.5b in 2000-01.

The coal industry reported an increase in EBIT of $620m (39%) to $2.2b while EBIT in the oil and gas extraction industry increased $6.5b (132%) to $11.5b during 2000-01. Within the metal ore mining industry EBIT increased by $2.1b (76%) to $4.8b. The principal factor creating these increases in EBIT is the significant increases in sales of goods and services.

In 2000-01 EBIT for other mining decreased by $271m (49%) to $287m, while in the services to mining industry EBIT decreased by $515m (569%) to a loss of $606m. These downward movements were predominantly caused through restructuring of the industries.


OPERATING PROFIT BEFORE TAX


OPBT mirrored movements in EBIT. National OPBT for all mining increased by $8.3b (105%) to $16.1b in 2000-01. OPBT for the coal mining, oil and gas extraction and metal ore mining industries increased by $9.1b (121%) to $16.6b.
OPBT for the coal mining industry increased by $580m (46%) to $1.8b while OPBT in the oil and gas extraction industry increased by $6.5b (150%) to $10.8b. The metal ore mining industry recorded an increase in OPBT of $2.0b (105%) to $3.9b.

OPBT for other mining decreased by $262m (53%) to $228m while OPBT for services to mining decreased by $537m (397%) to a loss of $672m in 2000-01.


NET WORTH


Within the mining industry net worth increased by $4.9b (13%) to $43.7b in 2000-01. Net worth for the coal mining, oil and gas extraction and metal ore mining industries increased by $4.1b (11%) to $40.8b. A significant part of this increase occurred in the oil and gas extraction industry where net worth increased by $3.6b (20%) to $21.4b. The value of assets within the industry increased by $6.0b (17%) while the value of liabilities increased by $2.3b (13%). These changes are largely attributable to a rise in price of oil in conjunction with the devaluation of the Australian dollar. The improved cash flows for a number of producers have resulted in the retirement of debt and a revaluation of assets. Net worth in the metal ore mining industry increased by $550m (5%) to $11.6b while net worth in the coal mining industry decreased by $114m (1.4%) to $7.8b mainly through an increase in the level of non-current liabilities.

Net worth in other mining decreased by $183m (12%) to $1.3b. An increase in non-current assets caused through new development contributed to net worth in services to mining increasing by $1.1b (199%) to $1.6b in 2000-01.


NET CAPITAL EXPENDITURE

Total net capital expenditure for the mining industry in 2000-01 was $4.2b, down by $2.2b (35%) on the previous year. Net capital expenditure for the coal mining, oil and gas extraction and metal ore mining industries decreased by $2.1b (36%) to $3.9b.

Expansion of operations in the coal mining industry contributed to an increase in net capital expenditure of $265m (51%) to $789m.

The completion of several large projects led to drops in net capital expenditure in the oil and gas extraction industry and the metal ore industry. Net capital expenditure in the oil and gas extraction industry decreased by $936m (40%) to $1.4b. Net capital expenditure in the metal ore mining industry decreased by $1.5b (46%) to $1.7b. Decreases in expenditure for plant, machinery and equipment were noted across all components of the metal ore mining industry.


STATE AND TERRITORY SUMMARY

Table 1.15 summarises sales of goods and services and IVA data for each state and territory for 1999-2000 and 2000-01. This includes state and/or territory estimates for businesses which operate across more than one state or territory, based on factors supplied by those businesses. See Appendix for more details.

The following analysis relates to ANZSIC subdivisions 11-14 (Coal mining, Oil and gas extraction, Metal ore mining and Other mining) only. ANZSIC subdivision 15 (Services to mining) is excluded from the analysis.

Sales of goods and services

Improved prices and increases in production of oil and gas resulted in increases in sales of goods and services in the Northern Territory, Victoria and Western Australia. Western Australia recorded the largest absolute increase rising $4.3b (25%) to $21.8b. Victoria recorded a $2.7b (77%) increase to $6.2b while the Northern Territory recorded a $2.4b (177%) increase to $3.7b.

Queensland recorded an increase of $1.5b (16%) to $10.9 predominantly through increased production in the copper ore and coal mining sectors.

South Australia also reported an increase in sales of goods and services, rising $565m (38%) to $2.1b mainly as a result of increased activity at the Olympic Dam mine and improvements in revenue from the oil and gas production sector.

New South Wales sales of goods and services remained steady at $6.0b.

Sales of goods and services in Tasmania decreased by $165m (26%) to $481m in 2000-01.

Western Australia accounted for 43% of sales of goods and services for the total mining sector with $21.8b. Queensland contributed 21% of sales of goods and services while Victoria and New South Wales each contributed 12% of the total.

Industry value added

The increased levels of sales of goods and services in 2000-01 contributed to corresponding increases in IVA.

In absolute terms, Western Australia recorded the largest increase, a $3.1b (26%) rise to $15.0b. Victoria recorded a $2.5b (89%) increase to $5.3b while the Northern Territory recorded a $2.2b (317%) increase to $2.9b.

IVA also increased in Queensland by $1.0b (23%) rising to $5.6b as well as in South Australia where IVA increased by $493m (53%) to $1.4b. IVA in New South Wales increased by $259m (11%) to $2.7b.

Tasmania recorded a decrease in IVA of $125m, a fall of 50% to $126.4m.

Western Australia contributed 45% of industry value added for the total mining sector with $15.0b. Queensland contributed 17% and Victoria contributed 16% to the national total.


EMPLOYMENT


SUMMARY

Total employment increased by 2,616 persons(4%) to 66,677 persons in 2000-01 for all mining covered by Division B of the Australian and New Zealand Standard Industrial Classification (ANZSIC). Within ANZSIC subdivisions 11-13 (i.e.coal mining, oil and gas extraction, and metal ore mining) employment increased 534 persons(1%) to 47,027 persons at the end of June 2000.

Employment in metal ore mining sector continued its downward movement although the movement appears to be levelling with a decrease of 167 persons (1%) in 2000-01. The metal ore mining sector remained the largest employer with 23,057 persons. The coal mining industry recorded an increase of 158 persons(1%) to 17,256 persons. Employment in the oil and gas industry rose by 543 persons(9%) to 6,714 persons mainly due to an improvement in the outlook for the industry caused by higher prices being received for oil.

Employment in other mining decreased by 849 persons(13%) to 5,827 persons.

Wages and salaries for the mining industry increased by $421.6m (9%) to $5.2b in 2000-01. Within the Coal mining, Oil and gas extraction, and Metal ore mining industries, wages and salaries increased by $195m (5%) to $4.0b in the same period.


USE OF CONTRACTORS

Over the past few years, there has been a strong trend towards contracting rather than direct employment of labour. (Minerals Industry Survey Report, 2001, Minerals Council of Australia).

Contractors are used to undertake a single task or a range of tasks such as stripping of overburden, crushing of ore or setting up mine site infrastructure. This usage has steadily increased particularly in the coal mining and gold ore mining industries. Many of these contractors are classified to industry categories such as construction and transport that are out of scope of the mining collection (see paragraphs 7-8 of the Explanatory Notes).

The Minerals Council of Australia estimated that there were 16,069 full-time equivalent contractors in the mining industry in 2000-01, a decrease of 9% over the previous year. The level of contractors engaged by mining companies is now estimated to be approximately 24% of full-time employment. This compares with 25% in 1999-2000 and 22% in 1998-99 (Minerals Industry Survey Report, 2001, Minerals Council of Australia).

The level of contract mining expenses as measured by the Mining Collection in 2000-01 for all mining was $3.0b, an increase of $29m (1%) from 1999-2000. Contract mining expenses for coal mining, oil and gas extraction and metal ore mining was $2.8b. This represented an increase of $197m (8%) on the previous year.

The gold ore mining industry had the largest contract mining expenses in 2000-01 expending $1.1b. This industry contributed 35% of the contract expenses for the mining industry.


LABOUR RATIOS

There are a number of operating ratios that can be calculated from the data collected. The following principal features for 2000-01 appear in detail in tables 2.3-2.5:
  • The oil and gas extraction industry recorded the highest level of selected labour costs paid per person employed at $111,500. The coal mining industry was next with $107,200. The lowest level of selected labour costs paid per person employed was recorded in the mineral sand mining industry with $51,800.
  • The oil and gas industry had the highest industry value added per person employed at $2.5m, an increase of $944m (60%) from the $1.6m reported in 1999-2000. The other mining sector reported $152,900 while services to mining reported $67,600 per person employed.

Graph - Industry value added per person employed


STATE AND TERRITORY SUMMARY

Table 2.6 summarises employment and wages and salaries data for each state and territory for 1999-2000 and 2000-01. This includes state and/or territory estimates for businesses which operate across more than one state or territory, based on factors supplied by those businesses. See Appendix for more details.

The following analysis relates to ANZSIC subdivisions 11-14 (Coal mining, Oil and gas extraction, Metal ore mining and Other mining) only. ANZSIC subdivision 15 (Services to mining) is excluded from the analysis.

Employment

Western Australia, Victoria and the Northern Territory and Queensland recorded increases in their mining industry work forces. Employment rose by 405 persons (2%) to 19,405 persons in Western Australia, by 383 persons (16%) to 2,768 persons in Victoria and by 73 persons (5%) to 1,668 persons in the Northern Territory. These increases occurred predominantly in the oil and gas industry. Queensland also recorded an increase in employment rising 376 persons (3%) to 13,632 persons due mainly to the movement of a large employer into the coal mining industry.

Employment in New South Wales fell by 1,036 persons (8%) to 11,705 persons because of restructuring in the other mining sector. South Australia's employment decreased by 366 persons (12%) to 2,634 persons while Tasmania also recorded a decrease in employment levels falling by 150 persons(13%) to 1,042 persons.

Western Australia accounts for the largest proportion of employees in the total mining sector with 19,405 persons, or 37% of the national total. Queensland and New South Wales, with 26% and 22% respectively were the second and third largest employing states in the total mining industry.

Wages and salaries

Wages and salaries for the states mirror movement in employment numbers. Movement in Victoria and the Northern Territory was higher than would normally be expected because of the predominance of the increases in the oil and gas sector where wages and salaries are historically higher than other sectors. Wages and salaries in Victoria increased by $124m (82%) to $276m while in the Northern Territory an increase of $19m (16%) to $142m was recorded.

Wages and salaries increased in Queensland by $85m (8%) to $1.1b and remained steady at $1.5b in Western Australia.

Decreases in wages and salaries were recorded in New South Wales, South Australia and Tasmania matching the falls in employment.

Western Australia accounts for the largest proportion of wages and salaries in the total mining sector with $1.5b, or 35% of the national total. Queensland and New South Wales, with 26% and 23% respectively were the second and third main contributors to wages and salaries in the total mining industry.


INDUSTRY PERFORMANCE MEASURES


INTRODUCTION

A range of performance measures, usually expressed as ratios, are produced from the data available from profit and loss accounts and balance sheets of businesses. A selection of these are presented in the tables at the end of this Chapter for the coal mining, oil and gas extraction, metal ore mining and services to mining industries. Information on the uses and limitations of these measures can be found in paragraphs 24-30 of the Explanatory Notes.


PERFORMANCE RATIOS

The following principal features for 2000-01 performance ratios appear in detail in tables 3.1-3.3:
  • Trading profit margin increased for the total coal mining, oil and gas extraction, and metal ore mining industries rising from 56% to 62%, return on funds rose from 13% to 25% and return on assets increased from 9% to 18%. Interest coverage for the total coal mining, oil and gas extraction, and metal ore mining industries increased from 5% to 10%, while the debt to asset ratio fell from 58% to 56%.
  • The oil and gas extraction industry recorded an increase in return on funds from 16% to 33% while return on assets increased from 12% to 26%. The coal mining industry recorded increases in both ratios with return on funds increasing from 11% to 16% and return on assets from 7% to 10%. Return on funds for the metal ore industry increased from 11% to 19% while the return on assets increased from 6% to 11%.

Analysis of a number of these ratios between 1994-95 and 2000-01 for each of the major mining industry subdivisions shows different patterns of performance. For example, trading profit margin for the oil and gas extraction industry was higher than for either coal mining or metal ore mining during this period. This reflects the lower level of purchases and capital intensive nature of the oil and gas extraction industry.

Graph - Trading profit margin, coal mining oil and gas extraction and metal ore mining



The oil and gas extraction industry recorded an upturn in the return on funds during 2000-01 resulting predominantly from an increase in EBIT caused by a rise in the value of sales of goods and services. Return on funds for the coal mining industry increased in 2000-01. This was also mainly due to the increase in the value of sales of goods and services and resultant increase in EBIT.

Graph - Return on funds, coal mining oil and gas extraction and metal ore mining (a)



MINERAL PRODUCTION


SUMMARY

This Chapter presents information on mineral production in Australia compiled from data supplied by the various state and territory Mines Departments as part of their administrative functions. These sources do not necessarily apply common definitions and standards when compiling the statistics and readers are advised to refer to paragraphs 20-22 of the Explanatory Notes.

Readers should exercise caution when using this data as not all commodity data are collected on the same basis in each state. Not only do definitional requirements vary between states but so too does the range of commodities upon which royalties are payable.

Significant variations exist between states in the way in which value of production is attributed, particularly for metallic minerals. For example, New South Wales and South Australia estimate the value based on metallic content. Tasmania only provides a breakdown of the value of its mining production by major group and so details about the value of each commodity are unavailable.

The level of information available for construction materials and other nonmetallic minerals varies considerably. Several states break down products such as crushed and broken stone into its components while other states are only able to provide a total figure. It should be noted that the production of construction materials may be understated in several states because royalties are not always collected or the activity occurs on private land.

To assist users in understanding the presented data, several footnotes have been provided. These footnotes also highlight those areas where variations in treatment or data availability occur across the states.


STATE PRODUCTION

Summary data for 2000-01 shows that Western Australia, with a value of $23.3b, continues to maintain the highest total value of production of the states and territories. The metallic minerals sector contributed $11.5b. Higher prices due predominantly to currency fluctuations led to increases in the value of production of the major commodities. Iron ore ($4.9b) and gold bullion ($3.2b) were the main contributors. The value of production for nickel rose in 2000-01 to $1.9b. Western Australia also has a significant value of production in the oil and gas industry. Increased production, as well as increases in oil prices, resulted in the value produced for crude oil more than doubling to $4.8b. The value of production of liquefied natural gas also rose, reaching almost $2.7b during 2000-01.

Queensland was the second largest mineral producer in 2000-01 with total production of $10.9b. Half of this value was attributed to coal production while copper contributed $1.3b. Queensland commenced production of phosphate rock in 2000-01 and this is expected to become a significant sector of the Queensland mining industry in the near future.

In 2000-01 New South Wales total production was $7.0b of which $5.0b (71%) was generated by the coal mining industry. Production of coal increased marginally(5%) but the value of production increased by 24% demonstrating the higher prices achieved. Silver-lead-zinc production remains a major contributor to New South Wales production, accounting for $700m during the year.

South Australia recorded $2.1b for the total value of production in 2000-01. The completion of production facilities at Olympic Dam as well as increased prices, led to a 41% increase in the value of production of copper to $703m. Natural gas mainly from the Cooper Basin, contributed $427m to the total value of production for South Australia.

In the Northern Territory 72% of the total value of production is attributable to the oil and gas industry. The value of production for crude oil rose by 86% to $2.6b. This increase can be attributed to price increases as well as 2000-01 being the first full production year from the Laminaria and Corallina oil fields. This contributed to the increase in the total value of production in the Territory to $3.6b in 2000-01.


VALUE OF MINERALS PRODUCED(a), State and territory, 2000-01

NSW
Vic.
Qld
SA
WA
Tas.
NT
$m
$m
$m
$m
$m
$m
$m

Minerals produced
7,030.6
(b)na
10,909.6
2,129.8
23,255.6
503.9
3,633.4

(a) Reported by State Mines Departments.
(b) Oil and gas not available.


2000-01 SURVEY CHANGES

Management unit collection

From 2000-01, this publication, Mining Operations, Australia, will only present mining data based on information collected solely from businesses (i.e.management units) classified to these industries. Prior to 2000-01, data were presented on both management units and establishments. This reflects the change in scope of the Economic Activity Survey underpinning this publication. From 2000-01, data are no longer collected from establishments in the mining industry.

It should be noted that the activity levels reflected by the statistics for management units are quite similar to the activity levels reflected by the statistics for establishments. Where differences do occur, it will generally be because the management unit statistics:
  • exclude mining establishments operated by management units which are classified to other industries, or
  • include establishments classified to other industries.

These differences vary between items. They range from 1% for turnover to 58% for employment in 2000-01.

State and territory estimates

Conceptual and collection changes have occurred for state and territory estimates with the cessation of the establishment collection. In order to obtain data by state and territory, businesses operating in more than one state had been requested to provide additional details on employment, wages and salaries and sales of goods and services for each state and/or territory in which they operate. This information has been used to synthesise on a pro-rata basis all other data reported for the whole business to each state and/or territory in which they operate. This will enable the production of state and territory data for employment, wages and salaries, sales of goods and services income and industry value added (IVA). However, it would not be possible to produce other data including the data indicated below industry subdivision level.
For comparison purpose, 1999-2000 estimates derived on this basis are presented in tables 1.15 and 2.6.


SURVEY CHANGES FROM 2001-02

In April 2000, the ABS released Information Paper: ABS Statistics and The New Tax System (TNTS) (cat.no.1358.0). The paper foreshadowed changes which would occur during 2002 to the infrastructure used by the ABS to support compilation of ABS economic statistical series. Most of the changes directly impact on the ABS Business Register which contains a list of businesses from which samples are selected to collect data for the economic series. The series will be impacted by the changes in the following ways:
  • the population of businesses that are considered to be employing based on taxation information, has changed as a result of TNTS
  • the statistical units model, that is, the way in which business structures are represented on the ABS Business Register, is being more closely aligned with taxation reporting requirements
  • the ATO has classified some businesses differently from the ABS, for example to different industries
  • different measures of business size are available.

Information Paper: Improvements in ABS Economic Statistics (Arising from the New Tax System) (cat.no.1372.0) was released on 6 May 2002. This paper describes the changes in more detail and their treatment in the statistical series It is available on the ABS web site <http:\\www.abs.gov.au> under Products and Services.

The Economic Activity Survey, including the mining and services to mining component, is one of the statistical series affected by these changes. From the 2001-02 collection, this survey will be producing estimates on this new basis.

In the next publication, Mining Operations, Australia, estimates for 2001-02 will be compiled on the new basis. To facilitate comparisons over time, this publication will also include estimates for 2000-01 for indicative variables on the new basis as well as on the old basis. Financial data by state and territory will be provided for a select number of key variables.


DATA RELIABILITY


SAMPLING ERROR

1 Data presented in this publication for Services to mining (ANZSIC subdivision 15) and Construction material mining (ANZSIC classes 1411 and 1419) are based on information collected from a sample of businesses and are, therefore, subject to sampling variability; that is, they may differ from the figures that would have been produced if the data had been obtained from all businesses in the population. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because the data were obtained from only a sample of units. There are about 2 chances in 3 that a sample estimate will differ by less than one SE from the figure that would have been obtained if the data had been obtained from all units, and about 19 chances in 20 that the difference will be less than 2 SEs.

2 The SE can also be expressed as a percentage of the estimate, and is known as the relative standard error (RSE). Estimates highlighted with an asterisk(*) indicate they are subject to sampling variability between 25% and 50%. Those estimates highlighted with** are subject to sampling variability greater than 50%. Detailed estimates of RSEs can be made available upon request.

3 The size of the RSE may be a misleading indicator of the reliability of some of the estimates for trading profit, OPBT, EBIT and IVA. This situation may occur where an estimate may legitimately include positive and negative values reflecting the financial positions of different businesses. In these cases the aggregate estimate can be small relative to the contribution of individual businesses resulting in an SE which is large relative to the estimate.

4 Relative standard errors for selected data items at the industry subdivision level are shown in the table below. Detailed RSEs can be made available on request.

Relative standard errors, 2000-01

Other mining
Services to mining
%
%

Employment
3.7
2.9
Wages and salaries
2.9
3.8
Sales of goods and services
2.3
3.2
Industry value added
2.4
8.4



NON-SAMPLING ERROR

5 The imprecision due to sampling variability, which is measured by the SE, should not be confused with inaccuracies that may occur because of inadequacies in available sources from which the population frame was compiled, imperfections in reporting from providers, errors made in collection such as recording and coding data, and errors made in processing data. Inaccuracies of this kind are referred to collectively as non-sampling error and they may occur in any enumeration, whether it be a census or a sample.

6 Every effort is made to reduce non-sampling error to a minimum by careful design of questionnaires, editing processes, and efficient operating procedures.

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