Australian Mining Services Industry Market Research Report Now Available from IBISWorld

Melbourne, Australia (PRWEB) November 21, 2011

This Australian Mining industry is expected to continue to perform strongly over the next five years, according to a new report IBISWorld, the nations largest publisher of industry research. Firming global growth will underpin rising demand for a range of minerals, providing the basis for growth in mining services. Particularly strong growth in iron ore production is anticipated, reflecting ongoing demand from the Chinese market and fuelling demand for contract mining in Western Australia. On the eastern seaboard of Australia, contract-mining activity will be fuelled by an expansion in coal output capacity in both Queensland and New South Wales, as well as by growth in coal seam methane production. In contrast, some other areas of metallic mineral mining and non-metallic mineral mining are expected to expand more slowly.

The Australian Mining Services industry's main activity is contract mining, which makes its performance highly dependent on trends in mining activity. Rising demand and high prices for minerals led to a mining boom over the past five years, thus increasing demand for mining services. Industry revenue is expected to grow an average rate of 6.8% per year over the five years through 2011-12. Revenue is expected to total about $ 9.79 billion in 2011-12, up 12% from the previous year. Flooding in the major coal-mining areas of Queensland in early 2011 reduced mining activity in the second half of 2010-11, but industry revenue still expanded 8.3%.

The conditions faced by firms in the Mining Services industry are expected to improve over the next five years, as world growth firms and demand for minerals revives. However, competition for work will be intense. Industry revenue is anticipated to average annual growth of 9% over the next five years to total $ 15.1 billion in 2016-17.

According to IBISWorld analyst, Kate Convey, firms in the Mining Services industry will face cost rises due the implementation of carbon pricing from 1 July 2012, when the Federal Government introduces a tax on greenhouse gas emissions, but will pass on this cost to their customers. The starting rate of the tax will be $ 23 per tonne of carbon dioxide equivalent (CO2-e) emitted. The price of carbon permits will increase by 2.5% over the following two years, before a market-based emissions trading scheme commences on 1 July 2015. Under the carbon pricing arrangements, the industry will pay an effective carbon price on transport fuels used in mining operations. The government plans to impose the carbon tax on this type of fuel use by reducing the fuel tax credit currently available.

For more information, download the full report from IBISWorld on the Mining Services Industry in Australia

IBISWorld Mining Services Industry in Australia Market Research Reports Contain:

About this Industry

Industry Definition

Main Activities

Similar Industries

Additional Resources

Industry at a Glance

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalisation & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

Jargon & Glossary

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About IBISWorld

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call +61 3 9655 3886.

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