$17.4bn
$X.Xbn
26,408
186
$X.Xbn
Industry firms provide services to third parties across the Mining division on a contract basis. These services include underground mining, surface mining, oil and gas extraction and other services. Industry players have faced difficult operating conditions over the past five years. Subdued demand for contract services from some parts of the Mining division has weighed on industry revenue over the period. While industry conditions improved over the two years through 2020-21, the COVID-19 pandemic created significant volatility in downstream markets and caused disruptions to industry operations. Despite this volatility, strong demand for Australia's mineral resources in export markets has supported mining activity over the past five years. Overall, industry revenue is expected to rise at an annualised 3.2% over the five years through 2023-24, to $17.4 billion. This result includes an expected decline of 4.5% in the current year, as easing commodity prices, tight labour market conditions and inflationary pressures constrain industry activity.Due to weakness in commodity prices over the two years through 2015-16, mine expansion and new exploration projects were scaled back and mining companies moved some core functions back in-house, which reduced demand for industry services at the start of the period. Some mining companies have remained hesitant to re-enter long-term mining contracts with external service providers. These trends have constrained industry revenue over the past five years. The COVID-19 pandemic created additional difficulties for industry firms, causing price volatility and leading some operators in the Mining division to scale back planned capital expenditure. However, industry firms have benefited from high prices for energy commodities, including oil, coal and gas, and growth in mineral exploration expenditure over the past three years.Export demand for Australian resources is projected to remain strong over the next five years. This trend, along with growth in capital expenditure on mining, is likely to cause a moderate increase in Mining division activity over the period. Growing demand from producers of commodities used in renewable energy infrastructure and batteries also represents a growth opportunity. Overall, industry revenue is projected to grow at an annualised 1.7% over the five years through 2028-29, to $18.9 billion.
Industry revenue has grown at a CAGR of 3.2 % over the past five years, to reach an estimated $17.4bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
CIMIC | 5,000.0 | |
Byrnecut Group | 1,742.4 | |
NRW Holdings | 1,511.7 |
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Industry revenue is measured across several distinct product and services lines, including Surface contract mining, Underground contract mining and Oil and gas extraction. Surface contract mining is the largest segment of the Contract Mining Services in Australia.
Growth in iron ore output has supported demand for surface contract mining
Industry firms carry out core stages of a mining operation as third parties on a fee or contract basis. Contract miners supply both machinery and skilled employees to undertake mineral and resource extraction activities at Australian mining sites.
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ANZSIC B - Contract Mining Services in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
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Larger players are well placed to win contracts due to their broad service offerings. Some major service providers have expanded their range of services through acquisitions.
Learn about the performance of the top companies in the industry.
Larger players have expanded their market share through acquisitions. This strategy has helped secure them a pipeline of long-term contracts and diversify their service offer...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Soaring global energy prices have increased demand from oil, gas and coal producers. Producers of energy commodities have looked to cash in on high prices and ramp up product...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Strong competition among the larger firms to win contacts has weighed on profit margins. Contract miners have also faced rising labour and purchase costs.
Including values and annual change:
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Key data sources in Australia include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the Contract Mining Services industry in Australia is $17.4bn in 2024.
There are 186 businesses in the Contract Mining Services industry in Australia, which has grown at a CAGR of 2.1 % between 2018 and 2023.
The market size of the Contract Mining Services industry in Australia has been growing at a CAGR of 3.2 % between 2018 and 2023.
Over the next five years, the Contract Mining Services industry in Australia is expected to grow.
The biggest companies operating in the Contract Mining Services market in Australia are CIMIC, Byrnecut Group and NRW Holdings
Surface contract mining services and Underground contract mining services are part of the Contract Mining Services industry.
The company holding the most market share in Australia is CIMIC.
The level of competition is high and steady in the Contract Mining Services industry in Australia.