These past five years have been extremely volatile for the silver, lead and zinc ore mining in Australia, due to fluctuating prices and output. The industry has finally managed to emerge from the gloominess, so IBISWorld has updated its report.
According to the media release issued on the PRWeb, the silver, lead and zinc ore mining industry in Australia is set to generate revenue of $4.3 billion in 2013-14, recording an annual growth for the five years of 2.1% in comparison with the $3.9 billion in 2008-09.
The increase in revenue is due to silver prices being higher over these years, while lead and zinc ore prices declined, which contributed greatly to higher zinc and lead demand and volumes over the same time period.
“Silver volumes have declined in the past five years, as downstream companies that use silver in their manufacturing processes turned to substitute metals or reduced demand,” said IBISWorld industry analyst Alen Allday.
Industry revenue is expected to increase by 2.8% in 2013-14 as volumes increase slightly and ore prices remain stable or rise by a small margin.
“Firming economic growth after the global financial crisis, especially in China and India, propelled demand for zinc and lead in the past five years,” said Mr Allday.
According to the IBISWorld report, Australia’s industry-relevant mine output is estimated at 1.5 million tonnes of zinc, 700,000 tonnes of lead and 58.2 million troy ounces of silver for 2013-14. A huge chunk of the industry’s output of zinc and silver is exported in the form of concentrates, while a significant proportion of lead output is refined locally.
The report further reveals the high level of industry concentration, with leaders BHP Billiton Limited, Xstrata Holdings Pty Ltd, and Minerals and Metals Group spearheading the market.
The silver, lead and zinc ore mining industry is expected to have improved performance during the years to come, through 2018-19. The bettered performance will come about as a result of higher output, firmer US dollar prices for silver, lead and zinc and a weaker Australian dollar.
Export will also improve, while refining companies will see a decline due to the shrinking of the Manufacturing division.
For more information, visit IBISWorld’s Silver, Lead and Zinc Ore Mining report in Australia industry page.