The Australian coal industry showed a fall in operating profit before tax of 28%, or $528m, to $1.4b in the 1999-2000 financial years, according to statistics released by the Australian Bureau of Statistics (ABS) today.
Increased coal production was offset by lower prices and direct employment in the coal mining industry recorded a decrease of 1,081 people (6%) to 17,097. As in previous years, this decrease was primarily attributable to businesses seeking to remain competitive by reducing staff in the face of downward pressures on commodity prices. Several mines closed during the reporting period.
Operating profit before tax and employment also fell in the metal ore mining industry. Operating profit before tax was down by $484m (19%) largely due to falling revenues from gold and iron ore. Employment declined in this industry by 4% to 46,986 people at the end of June 2000.
Overall, operating profit before tax for these main mining activities decreased nationally by 2% ($143m) to $7.0b in 1999-2000.
Completion of several major projects resulted in net capital expenditure for the mining industry's main activities falling 25% ($1.9b) to $5.9b. Direct employment by mining companies decreased by 4% (2,078) to 46,986 people at the end of June 2000.
Value added nationally was $24.4b in 1999-2000. The effects on turnover resulting from lower commodity prices were offset to some extent by reduced values for some major expenses such as contract mining and freight and cartage expenses. The oil and gas extraction industry continued to be the largest contributor to total value added, accounting for 38% in 1999-2000, up from 31% in 1998-99.
The coal mining industry accounted for 26% of value added (30% in 1998-99). The other major contributors were the iron ore mining and gold ore mining industries, which accounted for 12% and 8% respectively of value added in 1999-2000.
Victoria recorded the largest increase in turnover and value added with 46% ($1.1b) and 59% ( $1.2b) respectively, mainly through increased revenues from oil and gas extraction. NSW had the largest decrease in value terms. Lower revenues from coal sales were primarily responsible for the decrease. Turnover and value added decreased by $740m (12%) and by $577m (16%) respectively.