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ABOUT THIS ISSUE
This annual publication, Australian Mining Industry, 1998-99 (cat. no. 8414.0) has been preceded by the 1998-99 publication Mining, Electricity and Gas Operations, Australia, Preliminary (cat. no. 8401.0). Revised estimates that have resulted from the analysis of data from the 1997-98 Mining Collection and any revisions that have been made as a result of data supplied by providers in the 1998-99 Mining Collection are also presented in this publication. It is expected that preliminary results from the 1999-2000 Mining Collection will be released in February 2001.
The Mining Collection is conducted as a component of the Australian Bureau of Statistics (ABS) integrated economic statistics system. Data collected at the industry level within this framework conform to the same basic conceptual standards, allowing comparative analysis between different industries and industry sectors. Brief Explanatory Notes appear at the end of this main findings.
ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continuing cooperation is very much appreciated; without it, the wide range of statistics published by the ABS would not be available for general use by governments and the community. Information received by the ABS is confidential, in accordance with the Census and Statistics Act 1905.
In July 1998 the ABS released its Business Surveys Charter. The Charter sets out the relationship between the ABS and the businesses which provide it with information for statistical purposes. A copy of the Business Surveys Charter is available upon request.
Comments on the statistics and analyses presented and suggestions for future improvements are always welcome. These should be sent to: The Assistant Director, Mining National Project Centre, GPO Box 2272, Adelaide SA 5001. Fax: (08) 8237 7620.
SUMMARY
The Australian mining industry continued to be affected by issues of a global nature during 1998-99. Asian economies were showing signs of recovery but commodity prices remained low. Coal producers faced further cuts and oil reached its lowest level in real terms since the oil crisis of 1973. The United States (US) economy remained strong placing further downward pressure on the Australian dollar. The weakness of the $A actually cushioning resource producers as most contracts are written in $US.
The following summary relates to the main mining activities - coal mining, oil and gas extraction and metal ore mining for 1998-99. The publication also presents a limited range of details for other mining and services to mining.
FINANCIAL OPERATIONS
Management Unit
National figures refer to the aggregate of the coal mining, oil and gas extraction and metal ore mining industries.
Turnover
- Nationally turnover decreased by $0.8b (2%) to $37.3b in 1998-99.
- Metal ore mining recorded an increase of $388m (2%) rising to $16.8b mainly due to productivity increases and the recovery of commodity prices, at least in Australian dollar terms, for iron ore, gold and silver.
- Turnover in the coal mining industry decreased by $230m (2%) to $11.8b mainly as a result of continued downward pressure on the price of steaming and coking coal.
- Record low prices for oil, coupled with shutdowns for maintenance and the explosion at the Longford refinery in Victoria, saw turnover for the oil and gas extraction industry fall by $1.0b (10%) to $8.7b.
Trading Profit
- National trading profit fell by $1.3b (6%) to $19.1b in 1998-99.
- Trading profit in the coal mining industry decreased by $172m (3%) to $5.1b.
- The oil and gas extraction industry recorded a decrease in trading profit of $1.5b (18%), falling to $6.8b.
- In the metal ore mining industry trading profit increased by $352m (5%) to $7.2b.
Operating profit before tax (OPBT)
- OPBT mirrored movements in earnings before interest and tax (EBIT) decreasing by $526m (7%) to $6.6b.
- In the oil and gas extraction industry OPBT fell $1.6b (37%) to $2.7b.
- OPBT rose in the coal mining industry by $495m (57%) to $1.4b.
- In the metal ore mining industry OPBT increased $575m (30%) to $2.5b.
Net worth
- Nationally net worth (i.e. assets minus liabilities) remained relatively stable at $32.9b.
Net capital expenditure (NCE)
- Total NCE in 1998-99 was $7.9b, down by $505m on the previous year.
- NCE in the oil and gas extraction industry increased by $808m (41%) to $2.8b with the expansion of the North-West shelf project a major factor.
- NCE in the metal ore mining industry decreased by $1.2b (23%) to $4.1b as several major projects neared completion or went into production during the reporting period.
Employment
- National mining employment decreased 3,976 persons (7%) to 50,796 persons at the end of June 1999.
- Metal ore mining, with 25,064 persons was the largest employer, however, this was down 5% on the previous year.
- The coal mining industry recorded the largest decrease, falling 2,600 persons (12%) to 19,910 persons.
SELECTED INDICATORS, Management unit level
Establishment level
Table 1 provides a summary of the operations of mining industries at establishment level in 1998-99 for the coal mining, oil and gas extraction and metal ore mining industries.
Turnover
- Turnover at the establishment level nationally was $37.5b, $34m (less than 1%) down on 1997-98.
- Turnover in the coal mining industry increased by $404m (3%) to $12.9b.
- The oil and gas extraction industry recorded the largest decrease in turnover dropping $946m (10%) to $8.6b.
- In the iron ore mining industry turnover increased $439m (10%) to $4.7b.
- Consistently low world gold prices resulted in a decrease in turnover of $287m (5%) to $4.9b in the gold ore mining industry.
Value added
- National value added increased by $202m (less than 1%) to $24.1b in 1998–99.
- Value added increased in the coal mining industry by $448m (7%) to $7.2b.
- The oil and gas extraction industry recorded a $1.3b (15%) decrease in value added, falling to $7.5b.
- In the gold ore mining industry value added increased by $277m (13%) to $2.3b.
- Value added in the bauxite mining industry increased by $193m (30%) to $829m.
Net capital expenditure (NCE)
- NCE (total expenditure less disposals) increased by $886m (12%) to $8.0b in 1998–99.
- Capital expenditure on plant, machinery and equipment increased by $1.6b (40%) to $5.6b.
- Expenditure on dwellings, buildings and other structures decreased by $947m (26%) to $2.7b.
Employment
- Employment decreased by 3,748 persons (7%) to 47,300 persons in 1998-99.
- The coal mining industry reported the largest decrease employing 3,089 (14%) fewer persons than in 1997-98.
- Employment fell in the iron ore mining industry by 280 persons (6%) to 4,793 persons.
- In the gold ore mining industry employment fell by 692 persons (9%) to 7,135 persons.
1 MINING, SUMMARY OF OPERATIONS BY INDUSTRY - 1998-99
|
 | | | | | Inventories
| | | |
| | Employ-
ment at 30 June(a) | Wages and salaries(b) | Turnover
(c) | Open | Close | Purchases
and
selected expenses | Value
added | Net capital expend-
iture |
| | no. | $m | $m | $m | $m | $m | $m | $m |
|
| Coal mining | 19,704 | 1,931 | 12,871 | 1,123 | 969 | 5,499 | 7,218 | 1,097 |
| Oil and gas extraction | 4,492 | 386 | 8,596 | 293 | 300 | 1,130 | 7,472 | 2,543 |
| Metal ore mining | | | | | | | | |
| Iron ore mining | 4,793 | 437 | 4,696 | 369 | 427 | 1,215 | 3,539 | 773 |
| Bauxite mining | 1,564 | 82 | 1,104 | 75 | 88 | 289 | 829 | 322 |
| Copper ore mining | 2,257 | 155 | 1,459 | 269 | 213 | 760 | 643 | 277 |
| Gold ore mining | 7,135 | 424 | 4,939 | 579 | 531 | 2,543 | 2,348 | 581 |
| Mineral sand mining | 1,913 | 121 | 892 | 259 | 268 | 405 | 497 | 234 |
| Silver-lead-zinc ore mining | 3,029 | 214 | 1,678 | 157 | 128 | 553 | 1,096 | 849 |
| Other(d) | 2,413 | 161 | 1,289 | 347 | 372 | 837 | 477 | 1,371 |
| Total metal ore mining | 23,104 | 1,593 | 16,057 | 2,055 | 2,027 | 6,601 | 9,428 | 4,407 |
| Total mining 1998-99 | 47,300 | 3,910 | 37,524 | 3,471 | 3,296 | 13,230 | 24,119 | 8,047 |
| Total mining 1997-98 | 51,048 | 4,157 | 37,558 | 3,380 | 3,333 | 13,593 | 23,918 | 7,161 |
(a) Includes working proprietors.
(b) Excludes amounts drawn by working proprietors.
(c) Includes transfers out to other establishments of the same management unit where appropriate.
(d) Includes nickel ores, tin ores, uranium ores and non-ferrous metal ores n.e.c.
Source: Australian Mining Industry (8414.0). |
Table 2 contains a summary of the operations of mining industries in 1998-99 by State and Territory.
2 MINING, SUMMARY OF OPERATIONS BY STATE/TERRITORY - 1998-99
|
| | | | Inventories
| | | |
| Employment at 30 June(a) | Wages and salaries(b) | Turnover
(c) | Open | Close | Purchases and
selected expenses | Value added | Net capital expend-
iture |
| no. | $m | $m | $m | $m | $m | $m | $m |
|
| NSW | 11,720 | 1,063 | 6,442 | 591 | 454 | 2,724 | 3,581 | 448 |
| Vic. | 2,281 | 170 | 2,493 | 60 | 68 | 450 | 2,050 | 696 |
| Qld | 12,672 | 1,118 | 9,343 | 1,055 | 917 | 4,016 | 5,189 | 1,794 |
| SA | 1,750 | 114 | 1,129 | 93 | 86 | 329 | 793 | 261 |
| WA | 16,332 | 1,253 | 16,284 | 1,352 | 1,473 | 4,903 | 11,503 | 4,346 |
| Tas. | 905 | 61 | 478 | 47 | 51 | 296 | 187 | 43 |
| NT | 1,640 | 130 | 1,355 | 273 | 247 | 512 | 817 | 457 |
| Aust | 47,300 | 3,910 | 37,524 | 3,471 | 3,296 | 13,230 | 24,120 | 8,046 |
(a) Includes working proprietors.
(b) Excludes amounts drawn by working proprietors.
(c) Includes transfers out to other establishments of the same management unit where appropriate.
Source: Australian Mining Industry (8414.0). |
MINERAL PRODUCTION
The total value of minerals produced in the metallic minerals, coal, and oil and gas industries was $34.6b, an increase of $354m (1%) compared with 1997-98.
EXPLANATORY NOTES
The following are a summary of the concepts and classifications used in the publication. For detailed Explanatory Notes refer to publication, Australian Mining Industry, 1998-99 (Cat. no. 8414.0).
Introduction
1 The range of financial statistics appearing in the publication have been derived from the 1998-99 Mining Collection. The collection aims to meet demands of users who require annual financial statistics which can be related to other industry sectors in Australia on a consistent basis.
2 The Mining Collection is conducted as a component of the Australian Bureau of Statistics (ABS) integrated economic statistics system. Data collected at the industry level within this framework conform to the same basic conceptual standards, allowing comparative analysis between different industries and industry sectors.
Scope
3 The 1993 version of the Australian and New Zealand Standard Industrial Classification (ANZSIC) (cat. no. 1292.0) has been used to classify management units and establishments included in the Mining Collection. The mining classifications as listed in Division B are as follows:
| 110 | Coal Mining | |
| 1101 | Black coal mining |
| 1102 | Brown coal mining |
| 120 | Oil and gas extraction | |
| 1200 | Oil and gas extraction |
| 131 | Metal ore mining | |
| 1311 | Iron ore mining |
| 1312 | Bauxite mining |
| 1313 | Copper ore mining |
| 1314 | Gold ore mining |
| 1315 | Mineral sand mining |
| 1316 | Nickel ore mining |
| 1317 | Silver-lead-zinc ore mining |
| 1319 | Metal ore mining n.e.c. |
| 141 | Construction material mining | |
| 1411 | Gravel and sand quarrying |
| 1419 | Construction material mining n.e.c. |
| 142 | Mining n.e.c. | |
| 1420 | Mining n.e.c. |
| 151 | Exploration | |
| 1511 | Petroleum exploration (own account) |
| 1512 | Petroleum exploration services |
| 1513 | Mineral exploration (own account) |
| 1514 | Mineral exploration services |
| 152 | Other mining | |
| 1520 | Other mining services |
4 Mining broadly relates to the extraction of minerals occurring naturally as solids such as coal and ores, liquids such as crude petroleum, or gases such as natural gas, by such processes as underground mining, open-cut extraction methods, quarrying, operation of wells or evaporation pans, dredging or recovering from ore dumps or tailings. Activities such as dressing or beneficiating ores or other minerals by crushing, milling, screening, washing, flotation or other processes (including chemical beneficiation) or briquetting, are included because they are generally carried out at or near mine sites as an integral part of mining operations. Natural gas absorption and purifying plants are also included.
5 Establishments mainly engaged in refining or smelting of minerals or ores (other than preliminary smelting of gold), or in the manufacturing of such products of mineral origin as coke, cement and fertilisers are excluded.
6 Mining activity is sometimes undertaken within an establishment mainly engaged in other activities (e.g. a manufacturing establishment). Statistics relating to the mining activity in this situation are not treated as part of the mining industry, and are therefore not included in this publication, unless the transfers out of minerals exceed a specific value ($7.3m in both 1997-98 and 1998-99).
7 It should be noted that companies engaged in providing contract mining services are not always collected within the scope of the annual collection. Under the principles set down within ANZSIC, contract mining organisations will only be included if they are responsible for all facets of the mining operation at a particular site. In situations where companies provide contract mining services to the mining industry, these companies are classified to the activity they are performing rather than to the industry they are serving.
8 The annual Mining Collection now covers all ANZSIC classes in Division B. Subdivision 15 (Services to mining) was collected for the first time in 1995-96 using a sample survey. In 1998-99 Subdivision 15 was collected via the annual Economic activity Survey. In future years it will be part of the Mining Collection. Within Subdivision 14 (Other mining) all of Class 1420 (Mining n.e.c.) was collected in 1997-98 and 1998-99. However, for both years Classes 1411 (Gravel and sand quarrying) and Class 1419 (Construction material mining n.e.c.) were collected using a sample survey.
Statistical Units
9 The basic units for which statistics are reported in ABS integrated industry collections are the management unit and the establishment.
10 The management unit is the highest-level unit within a business, having regard to industry homogeneity requirements, for which accounts are maintained; in nearly all cases it coincides with the legal entity owning the business (i.e. company, partnership, trust, sole operator, etc.). In the case of large diversified businesses, however, there may be more than one management unit, each coinciding with a ‘division’ or ‘line of business’. A management unit is recognised where separate and comprehensive accounts are compiled for it.
11 The establishment is the smallest accounting unit of a business, within a State or Territory, controlling its productive activities and maintaining a specified range of detailed data including data enabling calculation of value added. In general an establishment covers all operations at a physical location, but may consist of a group of locations provided they are within the same State or Territory and classified to a single industry. The majority of establishments operate at one location only.
12 The ABS Mining Collection approaches both operators and participants in unincorporated joint ventures (UJVs). The statistical treatment of UJVs from 1989-90 has included the creation of separate establishments for individual participants in a UJV. In recognition of Australian Accounting Standard 19, new establishments are created for each venturer where an appropriate establishment operating in the same industry (ANZSIC) in the same State or Territory did not already exist. This has resulted in inflation of establishment counts in a number of industries. For this reason, establishment counts should not be taken to represent the operations at a single physical location. Generally the participants supply data on their share of income and assets, while the operator reports all expenses and employment.
Reference Period
13 The period covered by the collection is, in general, the 12 months ended 30 June. Where businesses are unable to supply information on this basis, an accounting period for which data can be provided is used for data other than that relating to employment.
14 Employment data in this publication represents employment for all units operating as at 30 June.
15 Details are presented about the quantity and value of minerals produced during the year ended 30 June 1998.
Reliability of Estimates
16 Data presented in this publication for Services to mining (ANZSIC Subdivision 15) and Construction Material Mining (ANZSIC Classes 1411 and 1419) are based on information collected from a sample of businesses and are, therefore, subject to sampling variability; that is, they may differ from the figures that would have been produced if the data had been obtained from all businesses in the population. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because the data were obtained from only a sample of units. There are about two chances in three that a sample estimate will differ by less than one SE from the figure that would have been obtained if the data had been obtained from all units, and about 19 chances in 20 that the difference will be less than two SEs.
17 The SE can also be expressed as a percentage of the estimate, and is known as the relative standard error (RSE). Estimates highlighted with an asterisk (*) indicate they are subject to sampling variability between 25% and 50%. Those estimates highlighted with ** are subject to sampling variability greater than 50%. Detailed estimates of RSEs can be made available upon request.
18 The imprecision due to sampling variability, which is measured by the SE, should not be confused with inaccuracies that may occur because of inadequacies in available sources from which the population frame was compiled, imperfections in reporting from providers, errors made in collection such as recording and coding data, and errors made in processing data. Inaccuracies of this kind are referred to collectively as non-sampling error and they may occur in any enumeration, whether it be a census or a sample. Every effort is made to reduce non-sampling error to a minimum by careful design of questionnaires, editing processes, and efficient operating procedures.
Related Publications
19 The following is a list of ABS publications containing mining and related statistics:
- Actual and Expected Private Mineral Exploration, Australia (cat. no. 8412.0)-quarterly
- Business Operations and Industry Performance, Australia (cat. no. 8140.0)- annual
- Directory of Mining Statistics (cat. no. 8416.0)-first issue October 1999
- Electricity, Gas, Water and Sewerage Industries, Australia (cat. no. 8208.0)-biennial, alternating with cat. no. 8226.0
- Environment Protection Expenditure, Australia (cat. no. 4603.0)-annual
- Export Price Index, Australia (cat. no. 6405.0)-quarterly
- Import Price Index, Australia (cat. no. 6414.0)-quarterly
- International Merchandise Trade, Australia (cat. no. 5422.0)-quarterly
- Job Vacancies and Overtime, Australia (cat. no. 6354.0)-quarterly
- Labour Force, Australia (cat. no. 6203.0)-monthly
- Manufacturing Industry, Australia (cat. no. 8221.0)-annual
- Manufacturing Production, Australia (cat. no. 8301.0) includes details of the production quantity of 27 important manufactured commodities (including electricity and gas)-issued approximately four weeks after the month to which it relates
- Mining, Electricity and Gas Operations, Australia, Preliminary (cat. no. 8401.0)-annual
- Mining Operations, Australia (cat. no. 8415.0) -biennial, alternating with cat. no. 8414.0
- Mining Technology Statistics, Australia (cat. no. 8413.0)-irregular
- Research and Experimental Development Business Enterprises, (Inter-Year Survey), Australia (Cat. no. 8114.0)-irregular
- Year Book Australia (cat. no. 1301.0)-annual
20 Current publications produced by the ABS are listed in the Catalogue of Publications and Products (cat. no. 1101.0). The ABS also issues, on Tuesdays and Fridays, a Release Advice (cat. no. 1105.0) which lists publications to be released in the next few days. The Catalogue and the Release Advice are available from any ABS office.
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