PROFITABILITY AND EARNINGS
At the total mining level, indicators of profitability showed similarly strong increases (in percentage terms) to the increase in IVA. This reflects the extent to which prices received rose by more than expenses. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased in 2005-06 by 57%, or $14.9b, the largest increases in dollar terms having occurred in Coal mining (up $5.3b, or 79%), Oil and gas extraction (up $3.5b, or 32%), and Iron ore mining (up $3.0b, or 82%). In Copper ore mining, EBITDA more than doubled (to $1.8b).
In terms of operating profit before tax (OPBT), the mining industry improved its returns by 59% (or $12.4b) during 2005-06, earning $33.4b. Total trading profit for the mining industry in 2005-06 was $57.1b, an increase of $18.4b (48%) over the previous year.