For further information on the Mining Equipment industry in Australia, please contact Commercial Specialist John Kanawati, U.S. Commercial Service Sydney on Tel: (+61-2) 9373-9207, Fax: (+61-2) 9221-0573, Email: John.Kanawati@N0SPAM.mail.doc.gov

Overview

Australia is the world’s largest exporter of black coal, diamonds, iron ore, lead, rutile, zinc and zirconium. It is the second largest exporter of gold and the third largest exporter of aluminum and bauxite. The state of Western Australia (WA) accounts for an estimated 50 percent of Australia’s mineral production. WA has over 1,200 operating mine sites (open pit, underground, and quarries) and 170 processing plants. The states of Queensland and New South Wales produce about 90 percent of Australia’s coal through open pit and underground coal mines.

Australian mining equipment manufacturers are particularly competitive in: fine coal benefication and process control; strata reinforcement technology; and mining-related software. Major capital-type goods are imported and/or locally assembled by subsidiaries of foreign companies. These products include drilling equipment, front-end loaders, earthmoving and excavating equipment, compactors, and draglines. The major suppliers of mining equipment are the U.S. (35 percent import market share), Japan (6 percent), and Germany (9 percent).

Continuing high mineral prices throughout 2007 have led to further exploration work across the country. Given the size of the country and difficult access to many areas, Australia is relatively unexplored by world standards. In 2006/07 private enterprises spent 55 percent more (USD3.1 billion) on minerals exploration than the previous financial year.

The value of mining projects also rose rapidly in 2007. Industry expects it to continue to rise throughout 2008 although at a reduced rate. World demand for minerals is still very strong but a shortage of skilled labor means that many projects remain on the drawing board. Demand for minerals is also having a strong impact on infrastructure projects. Port authorities are initiating work at many facilities to lift port capacity. Some of the major infrastructure projects include the RG Tanna coal terminal at Gladstone and stage 1 of the Dalrymple Bay Coal Terminal. With new mines and other resource-related projects all requiring large amounts of power, companies are also spending more on energy.

Best Prospects/Services

• Products for open cut mining (as many miners shift from underground to open cut production).
• Heavy equipment parts.  Companies are finding a shortage of tires and other components.
• Specialized treatment procedures for specific minerals (i.e. laterized nickel, heap leaching).
• Automation of materials handling and other operations.
• Mine planning / optimization software – as more mines move towards contract mining.

Opportunities

In December 2007, mining companies were either developing or about to commence construction on 51 projects. The projects had a combined estimated cost of USD17.2 billion. Just under half of these projects are located in the state of Western Australia.

Resources

Trade Event:

Queensland Mining and Engineering Exhibition
Date: July 22 –24, 2008
Location: Mackay, Queensland
http://www.qme.reedexhibitions.com.au/

Trade Associations:

Australian Coal Association: http://www.australiancoal.com.au
Australian Institute of Geoscientists – http://aig.org.au
Australasian Institute of Mining and Metallurgy: http://www.ausimm.com.au
Australian Drilling Industry Association: http://www.adia.com.au
Mineral Council of Australia: http://www.minerals.org.au
Mining Equipment & Services Council of Australia: http://www.mesca.com.au