Iron Ore Mining in Australia Industry Market Research Report now updated by IBISWorld

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Over the past five years, strong economic growth in large emerging nations, such as China and India, has fuelled growing demand for iron ore. This has led to increased production and higher prices (despite recent weakness), which are expected to underpin growth in the Iron Ore Mining industry. For these reasons, industry research firm IBISWorld has updated its report on the Iron Ore Mining industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Strong economic growth in large emerging nations, such as China and India, has fuelled growing demand for iron ore

The Iron Ore Mining industry is expected to generate revenue of $64.6 billion in 2012-13, compared with $25.4 billion in 2007-08. Over the period, strong economic growth in large emerging nations, such as China and India, has fuelled growing demand for iron ore. This has led to increased production and higher prices (despite recent weakness), which are expected to underpin annualised revenue growth of 20.5% over the five years through 2012-13. According to IBISWorld industry analyst Tim Stephen, “industry revenue is forecast to expand by 9.5% in 2012-13 as a large increase in production more than offsets price weakness”. Increases in iron ore output worldwide are putting downward pressure on prices.

Stephen adds, “Australia's iron ore production is forecast to total 520 million tonnes in 2012-13, compared with 324.7 million tonnes five years earlier”. About 504.8 million tonnes of iron ore will be exported, and nearly all sales will go to China, Japan, South Korea and Taiwan. Australia will import some iron ore, mainly from India. The industry is expected to continue growing strongly over the five years through 2017-18, as production volumes increase and prices recover. A volatile price climate is expected over the coming five years. Demand will continue to grow steadily, but supply will come onstream in large blocks, leading to seesawing prices around an upward trend.

The Iron Ore Mining industry is highly concentrated. The major players in the industry are Rio Tinto Plc - Rio Tinto Limited, BHP Billiton Limited and Fortescue Metals Group Limited. Iron ore producers (together with black coal miners) became subject to the Mineral Resource Rent Tax on 1 July 2012. A headline tax rate of 30% will be imposed on profit after a return equal to the long-term government bond rate plus 7.0%. Firms will also gain a tax credit for royalties paid to state governments. Carbon pricing, initially in the form of a carbon tax, was introduced on the same date. Mining firms' fuel use attracts the tax, which is implemented via reductions in fuel tax credits.

For more information, visit IBISWorld’s Iron Ore Mining report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry mine iron ore. The main type of ore mined is haematite.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s 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 organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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