Developments in the Mining Sector

Conditions in the mining industry have diverged significantly in recent years from those in the rest of the economy. In particular, after several years of strong performance in the mid 1990s, the industry entered a sharp downturn in the wake of the Asian economic crisis, stemming from weaker external demand and lower commodity prices. One consequence of this has been a steep cut-back in mining investment, which in turn has been an important contributing factor to a decline in investment growth for the economy as a whole. This article examines some of the key developments in the mining industry over the past few years and assesses its outlook. The mining sector has traditionally made an important contribution to the Australian economy, particularly in terms of investment