Bumper year for minerals industry

IT’S a great time to be in the minerals industry, with net profits up 74 per cent and average mineral prices up 45 per cent from 2004-05, according to the Minerals Council of Australia 2006 Minerals Industry Survey. Governments are also benefiting, with tax revenue up 250 per cent to $4.3 billion and royalties paid to state and territory governments rising almost 50 per cent to $2.2 billion. The total taxes payable to all governments increased by 120 per cent to $7 billion. The abundance of work available in the mining sector has led to total employment increasing by 19 per cent to 82,588 persons, while net cash used in investing activities was up 29 per cent to $10.1 billion relative to 2004-05. Mine production was up 7 per cent in volume terms and smelting and refining production was up 3 per cent, while the value of mineral resources exports increased by 32 per cent in 2005-06 to $91.8 billion. The report predicts domestic production will continue to increase in 2006-07, ranging from bulk commodities, up 9 per cent, to base metal production, up 10 per cent. Base metal prices are predicted to increase by approximately 50 per cent, while bulk commodity prices are forecast to increase, except for metallurgical coal.