The Mineral Industry of Australia in 2016
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2016 Minerals Yearbook AUSTRALIA [ADVANCE RELEASE] U.S. Department of the Interior May 2021 U.S. Geological Survey The Mineral Industry of Australia By Spencer D. Buteyn Australia’s nominal gross domestic product (GDP) was 1.68 petroleum extraction increased in value by 13%, followed by trillion Australian dollars (AUD) ($1.20 trillion1) in 2016. iron ore mining, which increased by 12%, and coal mining, 4%, Australia’s real GDP increased by 2.4% in 2016 compared whereas exploration and mining support services decreased by 17%, with that of 2015. Mining remained a significant contributor and other mining, by 7% (Australian Bureau of Statistics, 2018a). to the country’s growth, contributing 0.2 percentage points The mineral industry employed 163,484 people at the end to real GDP growth. Although mining investment continued of June 2016 compared with 177,670 in 2015 and from a to decrease in 2016—down by 33% from that of 2015 and peak of 194,205 in 2012. Metallic ore mining accounted for by 56% from the high in 2012—production amounts of most 40.0% of mining employment, followed by coal mining, 22.7%; mineral commodities continued to increase, and some mineral exploration and other mining services, 18.4%; natural gas and commodities, such as coal (all types) and iron ore, reached petroleum extraction, 11.7%; and nonmetallic mineral mining record highs. The decreased investment was owing to large and quarrying, 7.4%. Employment in every category of mining projects moving from the exploration and development stages decreased compared with that of 2015. Natural gas and petroleum to the production stage, which requires less capital expenditure, extraction was the only mineral extraction category to have higher as well as a decrease in the number of new exploration projects employment at the end of June 2016 compared with that of (Australian Bureau of Statistics, 2017b, 2018a; Department of June 2012, with 19,147 people employed in 2016 and 17,435 Industry, Innovation, and Science, 2017b, p. 5–11). employed in 2012. Employment in exploration and other mining Australia continued to be among the world’s leading support services saw the largest decrease during the past 4 years, producers of such mineral commodities as bauxite, coal, cobalt, to 30,054 people at the end of June 2016 from 50,944 people at copper, gem and industrial diamond, gold, gypsum, ilmenite, the end of June 2012 (Australian Bureau of Statistics, 2017a). iron ore, lead, lithium, manganese, nickel, phosphate rock, rare- Total expenditures on exploration had decreased every year earth elements, rutile, salt, silver, tin, uranium, zinc, and zircon. since 2012. In 2016, expenditures on exploration decreased to Australia’s rutile production accounted for more than 47% of AUD 2.80 billion ($2.00 billion), which was a 33% decrease world production; industrial garnet, iron ore, and lithium, 37% compared with that of 2015. This was a 63% decrease from the each; zircon, 34%; bauxite, 30%; industrial diamond, 23%; high of AUD 7.66 billion ($7.62 billion) in 2012. Nonpetroleum alumina, 17%; manganese and ilmenite, 14% each; rare-earth mineral exploration accounted for 51% of total exploration oxide, 12%; lead and nickel, 10% each; gold, 9%; zinc, 8%; expenditures in 2016, whereas petroleum exploration accounted and cobalt and copper, 5% each.2 Australia was ranked third for 49%. Exploration expenditures for petroleum decreased by in global uranium production, accounting for approximately 50% compared with that of 2015, and those for nonpetroleum 10% of world production, and was ranked fourth in global coal minerals decreased by 1% (Australian Bureau of Statistics, 2018b). production, accounting for 7% of world production (BP p.l.c., With respect to the exploration for nonpetroleum minerals, 2017, p. 30; Bedinger, 2018a, b; Bray, 2018a, b; Corathers, identified deposits accounted for 68% of exploration 2018; Flanagan, 2018; Gambogi, 2018; George, 2018; Jaskula, expenditures, and new deposits accounted for the remaining 2018; Klochko, 2018; McRae, 2018; Olson, 2018; Shedd, 2018; 32%. In 2016, 6,728 kilometers (km) was drilled in the Singerling, 2018; Thomas, 2018; Tuck, 2018; World Nuclear exploration for nonpetroleum minerals, which was a 13% Association, 2018). increase compared with that of 2015. This was the first increase since 2011 when 10,920 km was drilled. Gold deposits Minerals in the National Economy accounted for the largest share of exploration expenditures among nonpetroleum minerals in 2016, accounting for 43% of In 2016, mining (including exploration and mining support the total, followed by iron ore deposits, 20%; copper deposits, services) accounted for 5.9% of Australia’s GDP compared with 9.5%; coal (undifferentiated), 8.7%; nickel-cobalt deposits, 5.8% in 2015. The gross output of the mineral sector overall 3.6%; silver-lead-zinc deposits, 3.3%; uranium, 1.6%; mineral increased in value by 4.9% to AUD 99.0 billion ($70.7 billion). sands [composed of titanium ore minerals (ilmenite, leucoxene, Iron ore mining accounted for 35% of the gross output of the and rutile), garnet, staurolite, and zircon], 1.4%; and diamond, mineral sector, followed by petroleum and gas extraction, 26%; 0.1%. Other minerals, which included construction sand and coal mining, 18%; other mining (which includes nonferrous gravel, crushed stone, tin, and tungsten (scheelite and wolframite), metals, industrial minerals, and uranium), 15%; and exploitation accounted for the remaining 8.2% of exploration expenditures. and mining services, 7%. The gross output of natural gas and Exploration expenditures on diamond decreased by 63.5% in 2016; uranium, 46.8%; coal, 41.7%; nickel-cobalt, 21.0%; 1 Where necessary, values have been converted from Australian dollars mineral sands, 18.8%; iron ore, 9.0%; and silver-lead-zinc, (AUD) to U.S. dollars at the rate of AUD 1.005=US$1.00 for 2012, AUD 1.078=US$1.00 for 2014, AUD 1.345=US$1.00 for 2015, and AUD 8.1% compared with those of 2015. Exploration expenditures 1.400=US$1.00 for 2016. increased only for gold and copper in 2016, by 29.9% and 12.2%, 2World rankings and percentages do not include U.S. production for ilmenite, respectively (Australian Bureau of Statistics, 2018b–e). rutile, and zircon. AUSTRALIA—2016 [ADVANCE RELEASE] 3.1 Total expenditures on petroleum exploration was valued at and petroleum industries are regulated under the Mining Act AUD 1.37 billion ($981 million) in 2016, which was a 49.6% 1971, the Mining Regulations 2011, and the Petroleum and decrease from that of 2015. This was a decrease of 71% from Geothermal Energy Act 2000 and are managed by the Energy a peak of AUD 4.74 billion ($4.40 billion) in 2014. Offshore Resources Division and the Mineral Resources Division, both exploration accounted for 75% of total expenditures on part of the Department of State Development. The Tasmania petroleum exportation and decreased by 44.2% in 2016, whereas mining and petroleum industries are regulated under the Mineral expenditures on onshore exploration decreased by 60.8%. Resources Development Act 1995 and managed by the Mineral Drilling accounted for 44.8% of total onshore exploration Resources Tasmania, Department of State Growth. Victoria’s expenditures, whereas it accounted for 64.1% of offshore mining and petroleum industries are regulated under the expenditures (Australian Bureau of Statistics, 2018b, f). Mineral Resources (Sustainable Development) Act 1990 and the Petroleum Act 1998 and are managed by the Energy and Earth Government Policies and Programs Resources Division, Department of Economic Development, Jobs, Transport, and Resources. Western Australia’s mining Land ownership in Australia is divided into two categories, and petroleum industries are regulated under the Mining Act freehold land, which includes land that is held by traditional 1978, the Petroleum and Geothermal Energy Resources Act owner groups, such as Aboriginal and Torres Strait Islander land 1967, and the Petroleum (Submerged Lands 1982) and managed groups; and nonfreehold land or public land, commonly known by the Department of Mines, Industry Regulation, and Safety as Crown land. Mineral resources, irrespective of whether (Geoscience Australia, 2017, p. 19, 26, 28; Department of the they are located on freehold or Crown land, are owned by the Premier and Cabinet, 2018, p. 6). Government of Australia. The right to extract these minerals The Northern Territory mining and petroleum industry is is under the jurisdiction of the respective State governments managed by the Department of Primary Industry and Resources, (Australian Trade and Investment Commission, 2018). which replaced the Northern Territory Mines Department on In Australia’s three-tiered Government system—local, September 12, 2016. The Northern Territory’s nonpetroleum State or Territories, and Federal—each State or Territory mineral industry is regulated under the Minerals Act 2012. establishes its own legal framework for the mineral sector and The Government of the Northern Territory passed the Petroleum has the authority to grant mining rights. Mineral resources are Amendment Bill 2016 on May 26. This bill amended the existing considered owned by either the Federal or State governments. Petroleum Act 1984 to increase the Minister of Mines and States, however, do not engage in commercial exploration or Energy’s discretionary power over environmental management development of minerals; this is carried out solely by the private plans for onshore petroleum. The Northern Territory’s offshore