Australia Mining Report Q2 2008

Hosting a gamut of metals and minerals including iron ore, nickel, bauxite/aluminium, copper, gold, silver, uranium, diamond, opal, zinc, coal, oil shale as well as petroleum and natural gas, Australia continues to be the world leader in mining. The country is the world's largest exporter of coal, lead, diamonds, and zinc, it figures second in the export of gold and uranium, and is third-largest exporter of aluminium globally. Not surprisingly, the Australian mining industry is a significant contributor to the economy's gross domestic product (GDP).

Owing to its exceptional geology, Australia is home to some of the biggest names in the global mining industry. Some of the multinationals operating in the Australian mining industry include local BHP Billiton and Newcrest, UK-based Rio Tinto, US-based Alcoa, China-based Aluminium Corporation of China (Chalco), Canada's Alcan and Switzerland-based Xstrata. At present, the mining industry in Australia is undergoing a shift - with more and more companies exhibiting interest in exploration of base metals, iron and uranium, rather than in gold - reflecting the need to meet strong international demand - especially from emerging economies such as China and India.

Foreign investment rules are liberal and encourage inward investment. Mergers and acquisitions are subject to scrutiny by the Australian Competition and Consumer Commission (ACCC). The country has well-defined regulatory bodies and a well-established legal system that can be described as investorfriendly.

In the case of specific mineral exploitation, the authorities now consider uranium mining proposals on a case-by-case basis.

Industry Forecast Backed by state-of-the-art infrastructure facilities and liberal economic environment, the Australian mining industry is poised to continue its stable performance over BMI's forecast period. According to BMI's newly released Australia Mining Industry Report Q208, the industry is forecast to reach a value of US$65.3bn by 2012 and register an average growth of about 4.1% during 2008-2012.