The resources sector covers exploration, extraction and processing of oil and gas and minerals such as coal, uranium, iron ore, nickel, bauxite, gold, lead, copper, zinc, mineral sands, and diamonds. Major processing industries include cement, conversion of bauxite into alumina and then aluminium, iron ore into iron and steel, crude oil into liquefied petroleum gas (LPG) and transport fuels, and gas into liquefied natural gas (LNG). All Australian states and territories except the Australian Capital Territory extract oil, gas and minerals.
Mining and oil and gas extraction directly account for nine per cent of Australia's Gross Domestic Product (GDP).
Australian Mining Statistical Overview
The following table provides a break down of mining's contribution to the Australian economy in 2009-10.
| Exportsa
(A$m) | Employment
('000)** | New capital expenditurea (A$m) |
Energy Commodities* | 56 157 | 48 | N/A |
Metal Ores | 75 472 | 48 | N/A |
Other Minerals | 6 582 | 70 | N/A |
Total | 139 526 | 166 | 27 353 |
Source: Australian Bureau of Agricultural and Resource Economics and Sciences (2011) Australian Commodities – June Quarter 2011
* Includes Crude Oil, LNG, LPG, Coal and Other Energy Products **Averaged over 2009-10 Financial Year
In 2009-10, the value (free on board in Australian dollars) of Australia's major resource exports were:
- Coal (thermal and metallurgical) $36.4 billion
- Iron ore $34.5 billion
- Alumina and aluminium $8.8 billion
- Gold $13 billion
- Nickel $3.8 billion
- Crude oil and other refinery feedstock $9.5 billion
- Copper $6.5 billion
- LNG $7.9 billion
- LPG $1.1 billion
- Other Energy Products 1.3
- Zinc $1.2 billion
- Iron and steel $1.1 billion.
Source: Source: Australian Bureau of Agricultural and Resource Economics and Sciences (June 2011) Australian Commodities.
In the six months ended April 2011, 10 major mineral and energy projects, with a combined capital cost of $2.8 billion, were completed. The value of completed projects is the lowest since October 2005. Of the 10 projects completed, four were energy projects, three were mineral mining projects, two were infrastructure projects and one was an energy processing project.
In the six months to April 2011, three mining projects, including two iron ore projects, were completed at a capital cost of $851 million. The largest, in terms of capital expenditure, was Fortescue Metals Group’s expansion of its Chichester Hub. The US$630 million project will increase production capacity from 40 million tonnes a year to 55 million tonnes a year. The other iron ore project completed is the Nullagine iron ore project in the Pilbara region of Western Australia.
At the end of April 2011, there were six coal terminal expansions and four rail expansions either committed or under construction. Two infrastructure projects were completed in the six months to April 2011—a gas pipeline in New South Wales and an iron ore port expansion in Western Australia.
At the end of April 2011, there were 35 advanced mineral mining projects, with a total estimated capital expenditure of $33.6 billion.
Source: Australian Bureau of Agricultural and Resource Economics and Sciences 2011 ‘Major development projects: April 2011 listing’.
It should be noted that changes in the operating environment may affect project development and interested parties should refer to company websites and the following Australian Government research agencies for the latest information: