Gold Ore Mining in Australia Industry Market Research Report Now Updated by IBISWorld

A sudden increase in demand has prompted gold producers in Australia to expand production, pushing up industry revenue. For this reason, industry research firm IBISWorld has updated its report on the Gold Ore Mining industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

The industry's fortunes will be largely tied to the rise and fall of world gold prices over the next five years.

Melbourne, Australia (PRWEB) August 26, 2014

Gold ore mining is a well-established industry in Australia, with origins dating back to the gold rushes of the mid- to late 1800s. Players in the Gold Ore Mining industry in Australia have undergone a strong period of growth over much of the past decade. This growth stems from gold's status as a counter-cyclical commodity, meaning that it is viewed as a safe haven asset during times of national and global economic uncertainty. “As a result, the onset of the global financial crisis and the recessionary environment that ensued set up provided a massive boost for the industry,” according to IBISWorld industry analyst Alen Allday. As a result, in the five years through 2014-15, industry revenue is expected to increase at an annualised 3.2%.

In the wake of the financial crisis, as the value of global financial assets and currencies tumbled, investors across the world flocked to gold as a safe monetary asset. “This sudden increase in demand caused global gold prices to surge, which pushed up industry revenue,” says Allday. These conditions also prompted gold producers in Australia to expand production, as higher prices more than offset the higher cost of developing lower grade ores. However, the gold boom could be short-lived, given gold price declines in 2012-13 and 2013-14 as the global economy strengthened and inflationary fears eased. Despite gold prices rising in 2014-15, industry revenue is expected to decline by 2.4% to $12.2 billion in 2014-15 on lower volumes. The industry exhibits a medium level of market share concentration. Major players include Newmont Australia Holdings Pty Ltd, Barrick (Australia Pacific Holdings) Pty Ltd, Newcrest Mining Limited and Gold Fields Australia Pty Limited.

Over the five years through 2019-20, the industry's fortunes will be largely tied to the rise and fall of world gold prices. Gold prices are expected to change from year to year at a moderate rate, which will expose the Gold Ore Mining industry to some revenue volatility. However, prices at the end of the period are expected to remain largely stagnant compared with 2014-15. As a result, the expected slight increase in gold production will largely drive industry performance.

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

Companies operating in the industry mine gold-bearing ore. Some firms also carry out beneficiation processes, which are basic, preliminary processes that gold ore is put through prior to smelting and refining. This can be carried out by flotation extraction methods. Some companies dredge for gold or rework tailings for gold.

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IBISWorld industry Report Key Topics

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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