Metal ore mining is the largest sector of the mining division, contributing 32% of the division’s total revenue this year. This sector contains some of the mining division’s star performers.
Iron ore mining was the Australia’s fastest growing industry in the 2006 financial year, and it is forecast to be the second fastest growing industry in 2007.
In fact, in the coming year, iron ore mining will generate 46% of the total metal ore mining sector’s revenue.
This massive performance is being driven by exceptionally strong demand from China, which has caused the iron ore mining industry to grow by 50% over the past two years. This growth will slow down over the next few years, but industry revenue will continue on at these record levels for at least the next five years.
Another metal ore miner set to do well is gold ore mining, which has benefited from the uncertainties triggered by the threat of terrorism and the global fluctuations in oil prices, driving investors to put their money in something perceived to be safe, gold in particular.
These conditions look set to drive revenue growth in excess of 16% this year.
The mineral sands industry will benefit from price rises for most of its products, including zircon, which is used in the making of steel. This will result in revenue growth of 14.3% this year.
Of course this growth is also being driven by high demand from China.
The stunning growth exhibited by this sector over the past few years cannot be expected to last.
But that is not to say we expect the sector to go backwards.
IBISWorld believes that the strong performance of recent times is sustainable for the Australian industries and that the demand is there for us to continue our excellent run in this area.
Our miners have moved effectively to overcome capacity constraints which will sit our industries in good stead to meet the ongoing strong demand for our mineral wealth in the future.