Mining and mining exploration is a booming industry in the Western Australian mining sector.
But there are challenges ahead for the industry and it’s been highlighted in a new report by Next Big Futures.
In this report, Next Big Finance looks at the key sectors in the mining industry and what they can look forward to in the future.
The report, The Australian Mining Industry’s biggest year yet: 10 key sectors, was compiled by NextBig Finance, a company that tracks mining companies, and was released today.
It is the first time NextBig has released a comprehensive annual industry forecast for mining.
The report is based on a sample of 1,400 companies and their assets and uses financial models to forecast the industry’s future.
NextBig Finance CEO Chris Farrar says it is important to highlight the key issues for the mining sector in this year’s report.
“There is no doubt mining is a growing industry, but it’s not as exciting as it used to be,” Mr Farrars said.
Mr Farrart says the mining boom in recent years has had an impact on other industries, particularly the construction industry.
Many of these companies have seen their revenues drop by around $600 million or more in the last five years, he said.
“There’s been an overall reduction in jobs, which has created an opening for a number of new entrants, but also for some of the old players that haven’t been able to adapt to the new environment,” he said.””
It’s really a tough environment for companies in the industry.
“The real question is how much longer can these companies survive and be successful?”
Mr FARRAR says mining companies will face some of these challenges in the coming years.
However, he says there are areas where the industry is poised to thrive.
“[The mining] boom has really lifted the country, but there’s also an opportunity for other industries to take off,” he says.
“If the industry can continue to grow and develop and innovate in a way that doesn’t just have a lot of negative side effects for the economy, then that’s going to be a really good outcome.”
Topics:mining-industry,business-economics-and-finance,industry-federal-andreasurer,mining-environmental-issues,mining,miningrecession,business,businesses-and‑business,australiaFirst posted November 01, 2018 14:00:22Contact Anna BrownMore stories from New South Wales