1301.0 - Year Book Australia, 2012
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012
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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.
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MINING INDUSTRY
ECONOMIC CONTRIBUTION
The contribution of an industry to the overall production of goods and services in an economy, gross domestic product (GDP), is measured by industry gross value added (GVA). Information on the relationship between industry GVA and GDP is provided in chapter 15 INDUSTRY STRUCTURE AND PERFORMANCE.
Total production of the Mining industry as measured by industry GVA (in volume terms), increased by 6% between 2008–09 and 2009–10, and doubled between 1989–90 and 2009–10 (graph 18.1).
Over the last 10 financial years, the only annual decrease in production was in 2003–04 (3%) while the largest annual increase (8%) was in 2006–07.
Table 18.2 shows the industry GVA of the Mining industry and its contribution to Australia's GDP in the period 2005–06 to 2009–10.
Total industry GVA of the Mining industry increased by 21% over the period 2005–06 to 2009–10. The Mining industry’s contribution to GDP was 8.4% in 2009–10 and 9.8% the year before.
Production in the Services to mining industry accounts for a small proportion (around 6%) of total mining production. However, the total value of services to mining may be larger than these figures indicate as some services may have been provided by businesses classified to other industries, such as construction or business services.
Contribution to state and territory production
The importance of the Mining industry in terms of production, as measured by total factor income, varies across the states and territories. Total factor income is a measure of state/territory production and is equal to the total payments received by labour and owners of capital used in the production of goods and services.
In Western Australia, the contribution of the Mining industry remained relatively steady through the years 1997–98 to 2003–04 (between 18% and 21% of state production). However, since 2004–05, the contribution has risen to be 29% in 2009–10 (graph 18.3).
The Mining industry's share of Queensland production rose gradually from 6% in 1997–98 to 11% in 2006–07, peaked in 2008–09 at 15%, then returned to 11% in 2009–10.
During the period 1997–98 to 2003–04, the Northern Territory experienced significant changes in the contribution of the Mining industry to territory production, with a low of 13% in 1998–99 to a high of 34% in 2000–01, before falling to 18% in 2003–04. From this period, a steady annual increase saw the contribution rise to 26% in 2008–09, followed by a fall to 22% in 2009–10.
Exports
Table 18.4 shows the proportion of exports contributed by the Mining industry, based on exports by industry of origin.
In the period 2006–07 to 2010–11, the value of exports from the Mining industry more than doubled. By comparison, the value of exports from the manufacturing industry, after a peak in 2008–09 declined to 2006–07 levels. As a consequence, the Mining industry's contribution to total goods exported from Australia increased from 37% in 2006–07 to 55% in 2010–11, while that for the manufacturing industry fell from 51% to 34% over the same period.
STRUCTURE AND PERFORMANCE
Production of an industry can be measured in terms of industry value added (IVA), in much the same way as industry GVA. However, unlike industry GVA (the national accounts concept of production), IVA is not adjusted for a number of national accounting conventions, as the information to make these adjustments cannot be collected in the Economic Activity Survey (the main source of data for this section). The advantage of using IVA is the availability of more detailed (component) industry statistics.
In 2009–10, mining businesses paid a total of $16.8 billion in wages and salaries, and generated $153.5 billion in sales and service income and $87.8 billion IVA (table 18.5).
The Metal ore mining industry contributed the largest proportion (41%) of total mining production measured in terms of IVA, followed by Oil and gas extraction and Coal mining (both 26%). The Metal ore mining industry also generated the most operating profit before tax (50%, $25.9b) in 2009–10.
In terms of wages and salaries, the largest industry contributors were Metal ore mining ($5.6b or 33%) and Coal mining ($4.1b or 25%).
Capital expenditure
In 2009–10, net capital expenditure (capital expenditure after disposals of assets) was highest in the Oil and gas extraction industry (43%), followed by Metal ore mining (32%) (table 18.6). The Exploration and other mining support services industry had the highest level of disposal of assets, with $1,024 million (48% of total).
Operating profit before tax (OPBT)
Operating profit before tax (OPBT) is a measure of profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid).
From 2008–09 to 2009–10, OPBT for the Mining industry fell by $11.9 billion or 19% to $51.3 billion (table 18.7). The Coal mining and the Oil and gas extraction industries both fell significantly (56% and 52% respectively), which more than offset a large increase of $15.3 billion (144%) by the Metal ore mining industry.
(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition (1292.0).
Research and experimental development (R&D)
The Organisation for Economic Co-operation and Development (OECD) defines R&D as comprising “... creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications.” R&D includes types of activities: basic research, applied research and experimental development. In general, mining exploration is not considered to be R&D. Information on R&D expenditure by type of activity for the Mining industry can be found in chapter 26 RESEARCH AND INNOVATION.
Graph 18.8 shows the type of business expenditure on R&D in the Mining industry. For the period 1999–2000 to 2009–10, Other current expenditure (which excludes labour costs) was the major component of R&D expenditure for the Mining industry, accounting for 81% of total Mining industry R&D expenditure in 2009–10. Other current expenditure is a broad category and includes expenditure on materials, fuels, rent, leasing, maintenance, payments to outside organisations for specialised services, and the proportion of expenditure on general services and overheads attributable to R&D activity. Its value increased significantly from $201 million in 1999–2000 to $3,005 million in 2009–10 (69% and 81% of total Mining industry R&D expenditure respectively). The amounts spent on labour costs and capital expenditure also increased significantly over this period, by $520 million and $80 million respectively.
During the period 1999–2000 to 2009–10, the Mining industry's contribution to total business R&D expenditure rose from 11% to 22%. The manufacturing industry's share of total business R&D expenditure continued to be the highest, accounting for 25% in 2009–10.