IBISWorld Market Research
Revenue has fluctuated wildly over the past five years across the various product segments
Melbourne, Australia (PRWEB) January 20, 2014
The Silver, Lead and Zinc Ore Mining industry in Australia is expected to generate revenue of $4.3 billion in 2013-14, compared with $3.9 billion in 2008-09, showing annual growth for the five years of 2.1%. The increase reflects higher silver prices over these years, while lead and zinc ore prices declined. These declines did, however, contribute to higher zinc and lead demand and volumes over the period. According to IBISWorld industry analyst Alen Allday, “Silver volumes have declined in the past five years, as downstream companies that use silver in their manufacturing processes turned to substitute metals or reduced demand.” Industry revenue is expected to increase by 2.8% in 2013-14 as volumes increase slightly and ore prices remain stable or rise by a small margin.
Some global economic uncertainty in 2011-12 and 2012-13 resulted in industry declines as ore prices generally fell. Global zinc and lead prices continued to decline from the peaks of 2006-07 and 2007-08, while silver ore prices peaked in 2011-12 on the back of high gold prices and speculative activity. “Firming economic growth after the global financial crisis, especially in China and India, propelled demand for zinc and lead in the past five years,” says Allday. In 2013-14, Australia's industry-relevant mine output is estimated at 1.5 million tonnes of zinc, 700,000 tonnes of lead and 58.2 million troy ounces of silver. Comparable figures for 2007-08 are 1.4 million tonnes of zinc, 596,000 tonnes of lead and 62.2 million troy ounces of silver. A high proportion of the industry's output of zinc and silver is exported in the form of concentrates, while a substantial proportion of lead output is refined locally. The industry exhibits a high level of concentration, with major players BHP Billiton Limited, Xstrata Holdings Pty Ltd, and Minerals and Metals Group dominating the market.
The performance of the Silver, Lead and Zinc Ore Mining industry is projected to improve over the five years through 2018-19, due to the interplay of higher output, firmer US dollar prices for silver, lead and zinc and a weaker Australian dollar. Export levels are forecast to increase at a low rate in the next five years, with demand from downstream silver, lead and zinc smelting and refining companies expected to decline as the Manufacturing division continues to shrink.
For more information, visit IBISWorld’s Silver, Lead and Zinc Ore Mining report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry are mainly engaged in mining silver, lead or zinc ores.
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
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