Growing production is driving the industry
Melbourne, Australia (PRWEB) June 07, 2013
Australia is a major global coal producer and the biggest exporter of seaborne coal. The Black Coal Mining industry in Australia is expected to generate revenue of $59.4 billion in 2012-13, yielding annualised revenue growth of 9.5% compared with five years earlier. According to IBISWorld industry analyst Suzannah Rowley, “this strong growth has occurred due to higher annual coal prices and growing production over the past five years.” These factors have also contributed to an increase in industry profitability over the period. However, industry revenue is expected to fall in 2012-13 as lower coal prices more than offset higher output and export volumes.
The main barriers to performance over the past five years have been disrupted production due to prolonged industrial disputes and adverse weather conditions during 2010-11. These events caused some of the major companies to declare force majeure on coal exports from several Queensland mines. Added to this has been the introduction of the carbon tax and the Minerals Resource Rent Tax, which were expected to cause widespread job losses across the Mining division. “However, neither of these taxes have yet had a significant effect on the industry,” says Rowley. The Black Coal Mining industry is subject to a medium level of market share concentration, with six major players: BHP Billiton Limited, Mitsubishi Development Pty Ltd, Rio Tinto Plc - Rio Tinto Limited, Xstrata Coal Investments Australia Pty Limited, Anglo American Australia Limited and Peabody Energy Australia Pty Ltd.
The industry is expected to continue performing well over the next five years. The main driver of growth over this period will be improving global economic conditions, which will support demand for coal and Australian coal exports. However, ample coal supplies and strong competition from natural gas electricity generation will constrain coal prices. Profit is expected to grow more slowly than revenue, as the benefits flowing from economies of scale are outweighed by rising wage and fuel costs and new taxes.
For more information, visit IBISWorld’s Black Coal Mining report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry mine black coal for either domestic use or export. Mining includes the extraction of the coal, together with associated activities such as coal washing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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