Australia currently ranks among the top multiethnic countries in the world. With an area of around 7,687,087 km2 and a population of 26.5 million or more, it is the sixth biggest country in terms of population and area and has a significant proportion of international migrants.
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The Major Minerals Found in Australia
Australia ranks as the world leader in mining products and their revenue. Australia is home to over 350 operational mines, and around 20 necessary minerals utilized in various crucial ways are mined by companies working around the clock.
Aluminum, lithium, uranium, and zinc are abundant in Australia, and the nation occupies the top position worldwide in their production. Furthermore, precious and rare earth metals are mined in Australia and play a crucial role in the country's economy. Another abundant natural resource in Australia is mineralized sands, of which zircon and rutile are dominant products. In addition, it is dominant in producing black coal, nickel, copper, antimony, and silver.
Australia: A Leader in the Mining Sector Worldwide
The facts and statistics are the key indicators of Australia’s dominance in the mining sector. In 2022, Australia’s mining exports reached a record valuation of around 360 billion Australian dollars. This figure is around 15 percent of the entire country's total Gross Domestic Product valuation. The mining sector flourished in the previous year and is the source of income for more than 280,000 individuals.
This was all possible due to the government's planning and interest, which decided to seize the opportunity of mineral exploration to generate profits and allocated over 4 billion Australian dollars for setting up operational mines. The front runners included gold, copper, lithium, and iron ores.
If minerals are assessed individually, apart from the above-mentioned key minerals, uranium was also the center of attention as investments in uranium mines soared by 75% compared to 2022.
A similar trend was observed for minor mineral metals, which saw an increased investment of around 66 percent. This massive investment has boosted Australia's status as a key mineral commodities exporter, contributing significantly to the global production of minerals.
Below is a table summarizing Australia's mineral resources compared to the global scale:
Table 1 Australia's Mineral Resources In Comparison to Global Production
Data Source: Australia’s Identified Mineral Resources (AIMR) – Year: 2023 Available at: https://pid.geoscience.gov.au/dataset/ga/149056
Major Mining Exports of Australia
Black coal is among Australia's top mineral products, as the country is the fifth largest nation in the world in terms of its mining and production. From an economic perspective, this massive share of black coal accounts for around 10% of the global economic inventory. This is highlighted by the fact that Australia exported more black coal than iron ore, once the country’s major export. The black coal mining sector in Australia generated a revenue of around 142 billion dollars, which makes up around 39 percent of the total profit generated by Australia's mining sector. The revenue generated from the mining of black coal was a mere 64 billion in 2021, which now seems much less in comparison.
Thermal coal contributed 48% ($68 billion) to the overall earnings of coal, followed by metallurgical coal with the remaining 52% (close to a total of $74 billion).
In 2022, the major contributors to Australia's economy were steel, a composite of iron and carbon (coal), and iron ore. These accounted for 35% of the country's exports. However, the figure of $127 billion accounted for the total earnings by exporting these minerals, which is a decrement of 29 billion compared to $156 billion of the revenue generated in 2021.
Australia re-started molybdenum production for the first time after 44 years in 2022 at Cadia in New South Wales operations. This indicates the government's and investors' interest in Australia’s mining sector, proving to be a key reason for its increasing profits.
Table 2: A Review of Australia's Ore Reserves and Mineral Resources Found at the Operating Mining Sites
Data Source: Australia’s Identified Mineral Resources (AIMR) – Year: 2023 Available at: https://pid.geoscience.gov.au/dataset/ga/149056
Mining Sector of Australia: How Is It Key to the Advancement of Sustainable Technology?
Renewable and sustainable technology, such as electric cars, is the focus of attention worldwide. Governments and companies are investing millions of dollars, and the demand for these vehicles is increasing significantly daily.
Lithium is used in batteries used in net-zero emission technologies and electric vehicles, and the demand for it is increasing exponentially.
Australia has emerged as a key global producer of lithium. It produced the highest amount of lithium worldwide, accounting for around 53% of the global lithium production.
Considering the current surge in the demand for lithium, Australian miners increased lithium mining by about 35%, primarily for the development of batteries for electric vehicles. This led to a massive and record increase in lithium export along with spodumene ore and concrete, providing the economy a massive boost of 12.1 billion dollars. To put this massive boost in perspective, in 2021, the exports were only around 1.7 billion dollars; hence, the timely planning and efforts yielded a 600% profit surge.
There was also a significant increase in the mining of cobalt, which is essential for new rechargeable and traditional batteries. Cobalt mining increased by about 9%, primarily due to cobalt mine operations in Tasmania, particularly the Avebury nickel-cobalt mine.
Mineral Exploration Costs in Australia
In the 2022 financial year, the cost of mineral exploration in Australia grew by 13% (from the level of 2021), amounting to $4,055 million, whereas in 2021, the figure was about $3,596 million. This new quest for raw materials to sustain the increasing commodity demand resulted in a 46% jump in exploration expenses to $67 million (from $46 million).
Nevertheless, a base drop of 48% was observed in diamond mining, culminating in a total expenditure of about $2.9 million instead of $5.6 million a year ago. On top of this, costs of gold exploration went down by 5%, amounting to around 1,599 million dollars in 2021 to 1,524 million in 2022.
Australia has effectively planned its mining activities, considering the surge in mineral demand and sustainability practices. This is evident by a massive increase in its mining resources, mining profits, and economic stability.
The mining industry in Australia is developing quickly due to digital technologies, such as automated trucks and artificial intelligence-based systems, being integrated into operational practices. Australia has emerged as a leader in the global mining sector.
References and Further Reading
Australia Minerals - Government of Australia, (2023). Mineral resources information. [Online] Available at: https://www.australiaminerals.gov.au/mineral-resources-information
Australian Bureau of Statistics, (2023). Mineral and Petroleum Exploration, Australia. [Online] Available at: https://www.abs.gov.au/statistics/industry/mining/mineral-and-petroleum-exploration-australia/dec-2023#data-downloads
Australian Government Department of Foreign Affairs and Trade, (2024). About Australia. [Online] Available at: https://www.dfat.gov.au/about-australia
Geoscience Australia, (2023). Australian mineral facts. [Online] Available at: https://www.ga.gov.au/education/minerals-energy/australian-mineral-facts
Geoscience Australia, (2023). Australia's Size Compared. [Online] Available at: https://www.ga.gov.au/scientific-topics/national-location-information/dimensions/australias-size-compared
Geoscience Australia, (2024). Australia's Identified Mineral Resources. [Online] Available at: https://www.ga.gov.au/scientific-topics/minerals/mineral-resources-and-advice/aimr
Minerals Council of Australia, (2024). Australian minerals and mining facts. [Online] Available at: https://minerals.org.au/about/mining-facts/
Parliament of Australia. The minerals sector. [Online] Available at: https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook43p/mineralssector
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