Future of mining in Australia (2024)

FAQs

Future of mining in Australia? ›

This transformation will only be possible through the scaling up of mineral production – with estimates suggesting up to 140 new copper mines, 60 new nickel mines, 50 new lithium mines and 17 new cobalt mines will be needed by 2030 alone⁴.

The Mining industry experienced growth across all key data items in 2021-22.

Mining is not only a driver of economic growth for Australia, it supports regional development and delivers the essential materials for modern technologies that are delivering clean energy systems, improving health outcomes and enriching our lives.

In 2024–25, a further decline is likely, as commodity prices fall and the AUD/USD lifts. Further out, lower bulk commodity prices will impact export earnings. Further falls in nickel and lithium prices have been observed with higher supply than demand.

The global demand for critical minerals sets the scene for a new kind of mining boom in Australia, but the scale of the challenges should not be underestimated – and jobs and skills are high on the list.

An annual growth rate of 3.02% is expected (CAGR 2024-2028).

Climate change has taken top spot as the biggest risk challenge for the mining industry, despite not making an appearance on the list last year. Australia's ESG agenda is becoming increasingly prominent across all sectors, prompting executives to turn their focus to climate change risks.

Australia is one of the world's leading producers of bauxite (aluminium ore), iron ore, lithium, gold, lead, diamond, rare earth elements, uranium, and zinc.

Coal production in Australia is only expected to decline marginally by 2030, as coal remains a key commodity for the domestic energy mix as well as export markets.

How much does a Mining make in Australia? The average mining salary in Australia is $120,376 per year or $61.73 per hour. Entry-level positions start at $98,769 per year, while most experienced workers make up to $171,683 per year.

When was the last mining boom in Australia? ›

Australia benefited substantially (and will continue to benefit) from the resources boom, which ended in about 2013. It led to higher incomes on average for individuals, larger profits for many companies engaged in mining, and increased revenues for State and Territory governments and the Australian Government.

The mining boom is estimated to have boosted real per capita household disposable income by 13 per cent over the decade to 2013. The boom contributed to a large appreciation of the Australian dollar that has weighed on other industries exposed to trade, such as manufacturing and agriculture.

It is not possible to state with any certainty how long Australia's resources will last because production rates vary, the economic viability of deposits may change in the future and the rate of new resource delineation rarely matches resource depletion.

Australia is known the world over as a premier mining country. Australian mining stocks are in the top tier of the world's producers of lithium, nickel, copper, gold, silver, and other metals and minerals. The world runs on hard commodities that come from the earth.

Australia (especially Western Australia) is the one of the world's top producers of gold. About 60% of Australia's gold resources occur in Western Australia, with the remainder in all other States and the Northern Territory.

Mining is one of the industries that has carried the Australian economy through the Covid-19 crisis, and it's continuing to grow remarkably fast – which means a steady demand for suitably qualified labour.

Australia's mining industry is facing a labour crisis with a shortage of 36,500 workers forecast for 2025.

Industry Share of Output key sectors

Mining 14.3%, Finance 7.4%, Health and Education 12.8%, Manufacturing 5.7%, Construction 7.1%.

The Australian mining sector has been Australia's most profitable industry over the past five years, earning a total of $204 billion in pre-tax profits since 2004-5 (ABS catalogue 8155.0). Yet less than 10% of the total income earned from mining has been paid in wages and salaries to its workforce.