Mining in Australia has long been a significant primary sector industry and contributor to the Australian economy by providing export income, royalty payments and employment. Historically, mining booms have also encouraged population growth via immigration to Australia, particularly the gold rushes of the 1850s. Many different ores, gems and minerals have been mined in the past and a wide variety are still mined throughout the country.
In 2019, Australia was the world's largest producer of iron ore [1] and bauxite; [2] the second largest of gold, [3] manganese, [4] and lead; [5] the third largest of zinc, [6] cobalt, [7] and uranium; [8] the fifth largest of salt; [9] the sixth largest of copper [10] and nickel; [11] the eighth largest producer of silver [12] and tin; [13] the fourteenth largest of phosphate; [14] and the fifteenth largest of sulfur. [15] The country is also a major producer of precious stones, being the world's largest producer of opal and is also one of the largest producers of diamond, ruby, sapphire and jade.
In non-renewable energies, in 2020, the country was the 30th largest producer of oil in the world, extracting 351.1 thousand barrels/day. [16] In 2019, the country consumed 1 million barrels/day (the 20th largest consumer in the world). [17] [18] The country was the 20th largest oil importer in the world in 2018 (461.9 thousand barrels/day). [16] [ relevant? ] In 2015, Australia was the 12th largest world producer of natural gas, 67.2 billion m3 per year. In 2019, the country was the 22nd largest gas consumer (41.9 billion m3 per year) and was the 10th largest gas exporter in the world in 2015: 34.0 billion m3 per year. [19] In the production of coal, the country was the 4th largest in the world in 2018: 481.3 million tons. Australia is the 2nd largest coal exporter in the world (387 million tons in 2018) [20]
Mining was an important early source of export income in Australian colonies and helped to pay for the imports needed for the growing colonial economies. Silver and later copper were discovered in South Australia in the 1840s, leading to the export of ore and the immigration of skilled miners and smelters. Coal was first exported to India in 1799. [21] By 1901 Australia was exporting several million tonnes of coal each year. [22] After World War II the Bowen Basin was opened up fueling exports to Japan for its growing steel industry. [22]
An iron ore export ban was in place from 1938 to 24 November 1960. [23] In 1965, the first iron ore mine was operated at Goldsworthy in Western Australia. [24] Exports of iron ore began in the 1960s. [21] Iron ore production reached 100 million tonnes by the mid-1970s. [24] This figure doubled to 200 million tonnes in 2003, [21] and tripled by 2013. [23] Western Australia became the largest iron ore producer in the world in 2014. [21] Iron ore reached $100 billion in annual export value in 2020, the first commodity to do so. [21]
The first economic minerals in Australia were silver and lead in February 1841 at Glen Osmond, now a suburb of Adelaide in South Australia. Mines including Wheal Gawler and Wheal Watkins opened soon after. [25] The value of these mines was soon overshadowed by the discovery of copper at Kapunda (1842), [26] Burra (1845) [27] and in the Copper Triangle (Moonta, Kadina and Wallaroo) area at the top of Yorke Peninsula (1861). [28]
A small amount of uranium ore was mined in 1906 from Radium Hill. [29] Uranium deposits at Rum Jungle were developed in the 1950s. [29] The Ranger Uranium Mine was opened in June 1979 and the Olympic Dam mine opened in 1988. [29] The Ranger Uranium Mine was controversial, leading to the Ranger Uranium Environmental Inquiry. Indigenous people of the region were opposed to the mine. Indigenous opposition to the Ranger Uranium Mine influenced environmental assessments and policies. [30]
In 1851, gold was found near Ophir, New South Wales. Weeks later, gold was found in the newly established colony of Victoria. Australian gold rushes, in particular the Victorian gold rush, had a major lasting impact on Victoria, and on Australia as a whole. The influx of wealth that gold brought soon made Victoria Australia's richest colony by far, and Melbourne the continent's largest city. By the middle of the 1850s, 40% of the world's gold was produced in Australia. [31]
Australia's population changed dramatically as a result of the gold rushes: in 1851 the population was 437,655 and a decade later it was 1,151,957; the rapid growth was predominantly a result of the "new chums" (recent immigrants from the United Kingdom and other colonies of the Empire) who contributed the 'rush'. [32] Although most Victorian goldfields were exhausted by the end of the 19th century, and although much of the profit was sent back to the UK, sufficient wealth remained to fund substantial development of industry and infrastructure.
Australia has mining activity in all of its states and territories. The Minerals Council of Australia estimates that 0.02% of Australia's land surface is directly impacted by mining. [33]
Particularly significant areas today include the Goldfields, Peel and Pilbara regions of Western Australia, the Hunter Valley in New South Wales, the Bowen Basin in Queensland and Latrobe Valley in Victoria and various parts of the outback. Places such as Kalgoorlie, Mount Isa, Mount Morgan, Broken Hill and Coober Pedy are known as mining towns.
Major active mines in Australia include:
Large quantities of minerals and resources :
Much of the raw material mined in Australia is exported overseas to countries such as China for processing into refined products. Energy and minerals constitute two-thirds of Australia's total exports to China, and more than half of Australia's iron ore exports are to China. [47]
Australia ranks among the top 4 in economic resources for 21 primary industrial minerals, more than any other nation. Statistics are for December 2016. [48]
Units of measurement: t = tonne; kt = kilotonne (1,000 t); Mt = million tonne (1,000,000 t); Mc = million carat (1,000,000 c)
Mineral | Unit of Measurement | Demonstrated Economic Resources | World Ranking of Resources | % of World Resources | Production (2016) | World Ranking of Production | % of World Production | Years of Resources at Current Production Rate |
---|---|---|---|---|---|---|---|---|
Antimony | kt content | 139 | 4 | 9 | 5.5 | 4 | 4 | 25 |
Bauxite | Mt ore | 6,005 | 2 | 22 | 82.15 | 1 | 31 | 73 |
Coal, Black | Mt | 64,045 | 4 | 10 | 566.3 | 4 | 7 | 113 |
Coal, Brown (lignite) | Mt | 66,439 | 2 | 24 | 63.3 | 5 | 6 | 1,050 |
Cobalt | kt content | 1164 | 2 | 14 | 5.47 | 5 | 4 | 213 |
Copper | Mt content | 87.78 | 2 | 12 | .95 | 5 | 5 | 92 |
Diamond (industrial) | Mc | 115.84 | 3 | 18 | 13.96 | 2 | 24 | 8 |
Gold | t content | 9,800 | 1 | 17 | 288 | 2 | 9 | 34 |
Iron ore | Mt ore | 49,588 | 1 | 29 | 858 | 1 | 38 | 58 |
Lead | Mt content | 24.09 | 1 | 40 | .45 | 2 | 9 | 54 |
Lithium | kt content | 2,730 | 3 | 18 | 14 | 1 | 41 | 195 |
Manganese | Mt ore | 219 | 4 | 13 | 3.2 | 4 | 9 | 68 |
Nickel | Mt content | 18.5 | 1 | 24 | .204 | 5 | 9 | 91 |
Rare Earth Elements | Mt ore | 3.43 | 6 | 3 | .014 | 2 | 11 | 245 |
Silver | kt content | 89.29 | 2 | 16 | 1.42 | 5 | 5 | 63 |
Tin | kt content | 486 | 4 | 10 | 6.64 | 7 | 2 | 73 |
Titanium | Mt ore | 276.1 | 2 | 17 | 1.7 | 2 | 10 | 162 |
Tungsten | kt content | 391 | 2 | 12 | .11 | 12 | .40 | 1,151 |
Uranium | kt content | 1,212 | 1 | 29 | 6.31 | 3 | 10 | 192 |
Vanadium | kt content | 2,111 | 4 | 11 | 0 | 0 | NA | NA |
Zinc | Mt content | 63.5 | 1 | 28 | .884 | 3 | 7 | 75 |
Zircon | Mt ore | 72.1 | 1 | 67 | .60 | 1 | 31 | 120 |
Coal is mined in every state of Australia except South Australia. Australia is one of the world's major coal producers and exporters, ranking fourth in production (after China, India and the United States) and second in exports (after Indonesia). While most Australian coal is exported, coal was also used to generate 28.7% of Australia's total primary energy supply in 2021.
Uranium mining in Australia began in the early 20th century in South Australia. At 2016 Australia contained 29% of the world's defined uranium resources. The three largest uranium mines in the country are Olympic Dam, Ranger Uranium Mine and Beverley Uranium Mine. Future production is expected from Honeymoon Uranium Mine and the planned Four Mile Uranium Mine.
Based on 2008 CSIRO report, Australia estimated to have stranded gas reserves with about 140 trillion cubic feet or enough to fulfil the needs of a city with one million people for 2,800 years. [49]
Australia is the biggest producer of lithium by weight and has the world's largest hard-rock lithium mine, the Greenbushes mine in Western Australia. Lithium mined at Greenbushes accounted for more than 20% of global production in 2021. [50]
At various stages in the history of the mining industry in Australia, individual mining managers, directors and investors have gained significant wealth and the subsequent publicity. In most cases the individuals are designated Mining Magnates or Australian mining entrepreneurs.
A number of large multinational mining companies including BHP, Newcrest, Rio Tinto, Alcoa, Chalco, Shenhua, Alcan and Xstrata operate in Australia. There are also many small mining and mineral exploration companies listed on the Australian Securities Exchange (ASX). Overall, the resources sector represents almost 20% of the ASX market by capitalisation, and almost one third of the companies listed. [51]
Mining is Australia's largest sector by share of national Gross Domestic Product, 10.4% in 2020. This is up from only 2.6% in 1950, and from 10% at the time of federation in 1901. [52] [53] In 2020 mineral exports contributed 62% of Australia's total export revenue, valued at $270 billion. [54] Australia is the world's largest exporter of coal (35% of international trade), iron ore, lead, diamonds, rutile, zinc and zirconium, second largest of gold and uranium, and third largest of aluminium. [55] Japan was the major purchaser of Australian mineral exports in the mid-1990s. [31]
Of the developed countries, perhaps only Canada and Norway have mining as such a significant part of the economy; for comparison, in Canada mining represents about 3.6% of the Canadian economy and 32% of exports, [56] and in Norway mining, dominated by petroleum, represents about 19% of GDP and 46% of exports. [57] By comparison, in the United States mining represents only about 1.6% of GDP. [58]
The mining sector employed in 2021 about 270,000 people, about 2.0% of the total labour force. [59]
Australia's mining industry is 86% foreign owned; BHP is 76% foreign owned, and Rio Tinto is 83%. Between them they constitute 70% of listed mining company resources. [60]
Australia's mining services, equipment, and technology exports are over $2 billion annually. [61] Due to the predominance of mining activities in Australia, many technological innovations have been developed or proven in Australian mine sites. These innovations include contributions to autonomous underground vehicles, 3D scanning and printing and underground communications. [62]
Australia is the world's third largest exporter of fossil fuel carbon dioxide-emissions potential. [63] “Australia mines about 57 tonnes of CO2 potential per person each year, about 10 times the global average”. [63]
Mining has had a substantial environmental impact in some areas of Australia. Historically, the Victorian gold rush was the start of the economic growth of the country, leading to major increases in population. However, it also resulted in deforestation, consequent erosion, and pollution in the areas that were mined. [64] The effects on the landscape near Bendigo and Ballarat can still be seen today. Queenstown, Tasmania's mountains were also completely denuded through a combination of logging and pollution from a mine smelter, and remain bare today. It is estimated that 10 million hectares of land have been affected throughout the history of mining in Australia. [33] Because Australia's mines are distributed across varying climates the knowledge gained from one mine's restoration does not easily extrapolate to other sites. [33]
Uranium mining has been controversial, partly for its alleged environmental impact but more so because of its end uses in nuclear power and nuclear weapons. The Australian Labor Party, one of Australia's two major parties, maintains a policy of "no new uranium mines". As of 2006, the increased world demand for uranium has seen some pressure, both internally and externally on the ALP, for a policy change. [65] Australia is a participant in international anti-proliferation efforts designed to ensure that no exported uranium is used in nuclear weapons. [66]
During the period of 2010 and 2013, Australia saw a debate about the Minerals Resource Rent Tax (MRRT). The tax, levied on 30% of the "super profits" from the mining of iron ore and coal in Australia. A company was to pay the tax when its annual profits reach $75 million. The controversy regarding the MRRT was such that an "ad war" between the government and mining interests began in May 2010 [67] and continued until the downfall of Prime Minister Kevin Rudd in June 2010. [68] The Australian Electoral Commission released figures indicating mining interests had spent $22 m in campaigning and advertisements in the six weeks prior to the end of the Rudd prime ministership. [69] Mining interests re-introduced the advertisements arguing against the proposed revised changes during the 2010 federal election campaign. [70]
The Coalition, led by Tony Abbott, went to the 2010 and 2013 elections promising to repeal the tax. The Coalition won the 2013 election, and after one failed attempt to pass the bill, the Mining Tax Repeal Bill finally passed both houses of Parliament on 2 September 2014 and the tax was subsequently repealed.
A January 2014 poll conducted by UMR Research, however, found that a majority of Australians still think that multinational mining companies do not pay enough tax. [71] [72]
In the 2017 Western Australian state election The Western Australian National Party led by Brendon Grylls, who retook the leadership in August 2016, ran on a policy to tax BHP and Rio Tinto $5 for every tonne of iron ore mined (as opposed to $0.25 currently[ timeframe? ][ citation needed ]). [73] While a poll conducted found that 39.4% of voters surveyed supported the policy, 37.1% opposed and 23.5% were undecided. [74] [75] The big mining companies ran an advertising campaign against the policy. [76] [77]
Grylls was defeated in that election by the Labor candidate.
Creswick in the Victorian goldfields is the site of the New Australasian No.2 Gold Mine. On 12 December 1882, 29 miners became trapped underground by water that broke through from the adjacent flooded No.1 Gold Mine workings. Only five survived. Despite two days of frantic pumping, water filled the mine workings. The trapped men scrawled last notes to their loved ones on billy cans before they drowned. Some of these have been kept and still bear the messages. The men that perished left 17 widows and 75 dependent children. [78] [79]
In 1902 a gas explosion in the Mount Kembla Colliery in the Illawarra region of New South Wales resulted in the deaths of 96 men and boys, either while at work or in the course of trying to rescue others. Every family in the village lost a relative. A service of commemoration is held annually on 31 July at the Mount Kembla Soldiers' and Miners' Memorial Church. This was Australia's worst mining disaster. [80] [81]
On 12 October 1912 at Queenstown, Tasmania the North Mount Lyell Fire caused the death of 42 miners, and required breathing apparatus to be transported from Victoria to rescue trapped miners. The subsequent royal commission was inconclusive as to the cause. [82]
The 1921 Mount Mulligan mine disaster occurred in Far North Queensland. A coal dust explosion killed 75 men.
Four serious accidents have occurred at mines in the Central Queensland town of Moura. The first accident took the lives of 13 men in September 1975. In July 1986 there was an explosion at Moura Number 4 Mine. 12 coal miners lost their lives in this disaster that sparked controversy after experts claimed the accident was avoidable. Another explosion killed two men in January 1994 and just eight months later another explosion deep underground took the lives of 11 men. [83]
On 23 March 1887 an explosion at the mine in Bulli in New South Wales killed 81 people. [84] A royal commission was set up to investigate the explosion and concluded:
..that the explosion was caused by marsh gas or carburetted hydrogen gas [methane] that had accumulated at the face ... That the immediate cause was probably the flame from an overcharged shot that had apparently been fired fired by [a miner] in the coal in No. 2 heading.
The gas explosion propagated a coal dust explosion and travelled towards the fresh air at the surface.
The commission was of the opinion that carelessness, want of skill, and the loose and perfunctory manner in which the principal operations in the mine were performed by the majority of the men, and countenanced by at least the overman and deputies, were immediately connected with, and led up to, the occurrence of the final catastrophe, when, by the direct negligence of probably one man, eighty other men lost their lives, and that the mine deputy, the mine overman (foreman) and the mine manager were guilty of contributory negligence. [85] [86]
At the Box Flat Mine in Swanbank, South East Queensland, 17 miners were lost after an underground gas explosion occurred on 31 July 1972. [87] Another man died later from injuries sustained in the explosion. The mine tunnel mouths were sealed and the mine closed shortly after. [87]
Mining in Japan is minimal because Japan does not possess many on-shore mineral resources. Many of the on-shore minerals have already been mined to the point that it has become less expensive to import minerals. There are small deposits of coal, oil, iron and minerals in the Japanese archipelago. Japan is scarce in critical natural resources and has been heavily dependent on imported energy and raw materials. There are major deep sea mineral resources in the seabed of Japan. This is not mined yet due to technological obstacles for deep sea mining.
Mining in Western Australia, together with the petroleum industry in the state, accounted for 94% of the State's and 46% of Australia's income from total merchandise exports in 2019–20. The state of Western Australia hosted 123 predominantly higher-value and export-oriented mining projects and hundreds of smaller quarries and mines. The principal projects produced more than 99 per cent of the industry's total sales value.
Mining in Iran is still under development, yet the country is one of the most important mineral producers in the world, ranked among 15 major mineral-rich countries, holding some 68 types of minerals, 37 billion tonnes of proven reserves and more than 57 billion tonnes of potential reserves worth $770 billion in 2014. Mineral production contributes only 0.6 percent to the country's GDP. Add other mining-related industries and this figure increases to just four percent (2005). Many factors have contributed to this, namely lack of suitable infrastructure, legal barriers, exploration difficulties, and government control.
Mining in Brazil is centered on the extraction of iron, copper, gold, aluminum, manganese, tin, niobium, and nickel. About gemstones, Brazil is the world's largest producer of amethyst, topaz, agate and is a big producer of tourmaline, emerald, aquamarine, garnet and opal.
Mining in South Africa was once the main driving force behind the history and development of Africa's most advanced and richest economy. Large-scale and profitable mining started with the discovery of a diamond on the banks of the Orange River in 1867 by Erasmus Jacobs and the subsequent discovery of the Kimberley pipes a few years later. Gold rushes to Pilgrim's Rest and Barberton were precursors to the biggest discovery of all, the Main Reef/Main Reef Leader on Gerhardus Oosthuizen's farm Langlaagte, Portion C, in 1886, which kicked off the Witwatersrand Gold Rush and the subsequent rapid development of the gold field there.
Gold mining in the People's Republic of China has made that country the world's largest gold producer. In 2022, China mined 403 tons of gold. Data indicates the marginal costs are often above the world price for gold. For the year 2007, gold output rose 12% from 2006 to 276 tonnes to become the world's largest for the first time—overtaking South Africa, which produced 272 tonnes. South Africa had until then been the largest for 101 years straight since 1905. The major reasons for this change in position had been due to South African production falling by 50% in the past decade as production costs there have risen, more stringent safety regulations have been implemented, and existing mines have become depleted. In 2014, production had increased to 450 tonnes.
The mineral industry of Russia is one of the world's leading mineral industries and accounts for a large percentage of the Commonwealth of Independent States' production of a range of mineral products, including metals, industrial minerals, and mineral fuels. In 2005, Russia ranked among the leading world producers or was a significant producer of a vast range of mineral commodities, including aluminum, arsenic, cement, copper, magnesium compounds and metals, nitrogen, palladium, silicon, nickel and vanadium.
The second-largest mineral industry in the world is the mineral industry of Africa, which implies large quantities of resources due to Africa being the second largest continent, with 30.37 million square kilometres of land.With a population of 1.4 billion living there, mineral exploration and production constitute significant parts of their economies for many African countries and remain keys to economic growth. Africa is richly endowed with mineral reserves and ranks first in quantity of world reserves for bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium.
Mining in New Zealand began when the Māori quarried rock such as argillite in times prior to European colonisation. Mining by Europeans began in the latter half of the 19th century.
Tajikistan has rich deposits of gold, silver, and antimony. The largest silver deposits are in Sughd Province, where Tajikistan's largest gold mining operation is also located. Russia's Norilsk nickel company has explored a large new silver deposit at Bolshoy Kanimansur. More than 400 mineral deposits of some 70 different minerals have been discovered in Tajikistan, including strontium, tungsten, molybdenum, bismuth, salt, lead, zinc, fluorspar, and mercury. These minerals have been found suitable for mining. Uranium, an important mineral in the Soviet era, remains in some quantity but is no longer being extracted. The Tajikistan Aluminium Company (TALCO), an aluminium smelter, is the country's only large-scale production enterprise in the mining sector. Tajikistan hosts the annual Mining World Tajikistan, an international exhibition on mining in Dushanbe.
The mineral mining industry is a crucial piece of the Economy of Niger. Exports of minerals consistently account for 40% of exports.
The total cultivable area in India was reported as 155,369,076 hectares as of 2020, and is shrinking due to over-farming, increased livestock grazing, deforestation, urban growth, and severe weather events. India has a total water surface area of 314,070 km2.
Mining in the United Kingdom produces a wide variety of fossil fuels, metals, and industrial minerals due to its complex geology. In 2013, there were over 2,000 active mines, quarries, and offshore drilling sites on the continental land mass of the United Kingdom producing £34bn of minerals and employing 36,000 people.
Mining in the United States has been active since the beginning of colonial times, but became a major industry in the 19th century with a number of new mineral discoveries causing a series of mining rushes. In 2015, the value of coal, metals, and industrial minerals mined in the United States was US$109.6 billion. 158,000 workers were directly employed by the mining industry.
Metal production, in particular iron and steel industry, is the dominant heavy industry in Ukraine. Ukraine is the world's eighth largest producer and third largest exporter of iron and steel (2007). Ukrainian iron and steel industry accounts for around 2% of worldwide crude steel output, 5% to 6% of the national gross domestic product and 34% of Ukrainian export revenue. In 2007 it employed 420,000 people – 10% of industrial labor and 2% of the total workforce. It has the highest, by a wide margin, revealed comparative advantage of all branches of the Ukrainian economy. The industry peaked at 42.8 million tonnes in 2007 but has been gravely affected by the financial crisis of 2007–2010 and declined to 29.8 million tonnes in 2009.
Mining is an important industry in Pakistan. Pakistan has deposits of several minerals including coal, copper, gold, chromite, mineral salt, bauxite and several other minerals. There are also a variety of precious and semi-precious minerals that are also mined. These include peridot, aquamarine, topaz, ruby, emerald, rare-earth minerals bastnaesite and xenotime, sphene, tourmaline, and many varieties and types of quartz.
Mining is important to the national economy of Mongolia. Mongolia is one of the 29 resource-rich developing countries identified by the International Monetary Fund and exploration of copper and coal deposits are generating substantial additional revenue.
Mining in North Korea is important to the country's economy. North Korea is naturally abundant in metals such as magnesite, zinc, tungsten, and iron; with magnesite resources of 6 billion tonnes, particularly in the North and South Hamgyong Provinces, as well as the Chagang Province. However, often these cannot be mined due to the acute shortage of electricity in the country, as well as the lack of proper tools to mine these materials and an antiquated industrial base. Coal, iron ore, limestone, and magnesite deposits are larger than other mineral commodities. Mining joint ventures have occurred with other countries include China, Canada, Egypt, and South Korea.
China's mineral resources are diverse and rich. As of 2022, more than 200 types of minerals are actively explored or mined in China. These resources are widely but not evenly distributed throughout the country. Taken as a whole, China's economy and exports do not rely on the mining industry, but the industry is critical to various subnational Chinese governments.
Mining has been conducted on an industrial scale in present-day Canada since the late 18th century. The industry remains an important aspect of the economy of Canada to this day, particularly in the North, and Canadian-domiciled mining companies have increasingly expanded their operations globally.
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