The country has about 350 active mining companies Australia wide and generates large quantities of 19 essential minerals. Bauxite (aluminium ore), iron ore, lithium, gold, and lead, are some of the top commodities that the largest mining companies in Australia produce.
Let’s talk about these minerals in Australia and their corresponding market updates.
Bauxite
According to Fitch Solutions, Rio Tinto mines in Western Australia and Alcoa’s growth plans will increase bauxite production in the country, keeping the nation as the world’s top bauxite producer. Australia now has five major bauxite mines that supply the six alumina refineries. These supply the four Australian aluminium smelters and the export market.
Although it is also utilised as an industrial material, Australian rare earths like bauxite is predominantly a metallic mineral. It is the sole mineral used in the large-scale manufacture of aluminium.
Iron Ore
Iron ore mines in Australia took a hit as the prices were under pressure. This results from ongoing concerns over demand from the main steel producer, China. The company’s margins were further squeezed by labour shortages and increased costs. Australia forecasts that global steel production will decline by 0.6% this year to 1.947 billion tonnes.
Lithium
As demand increases for battery metals, mining companies Australia wide are set to take a fifth position in the global lithium hydroxide refining capacity within five years.
According to the International Energy Agency, China produces more than 80% of the world’s lithium hydroxide, a refined version of the in-demand metal. However, several businesses are constructing refineries in Australia that will convert locally mined lithium ore into chemicals suitable for use in batteries.
Gold
Since the late 1800s, gold has been a major export for Australia. Mining companies Australia wide are believed to hold 9,500 tonnes, or 17% of the world’s total estimated gold reserves. Australia has been the world’s second-largest producer of gold for the past ten years, behind China, and its resistance to the pandemic has allowed it to keep up regular production. Gold mines in Australia even managed to briefly overtake other countries when they recovered from operational hiccups and site closures.
Now that the retail and jewellery industries are recovering, consumer demand for gold is increasing, and institutional investment is still high as investors seek safe assets to offset lingering economic and geopolitical uncertainty. Gold mines in Australia are well-positioned to supply this expanding demand because exploration is at an all-time high, and a number of new projects are about to start up.
Lead
Australia produced approximately 499 thousand metric tons of lead from its mines in 2021. The amount was lower than the prior year, but the country remains the second-largest producer of lead in the world.
Lead has a promising future, largely due to its relationship with the battery sector. Long-term factors should support the lead demand and prices, such as the growing popularity of e-bikes and increased auto sales in developing nations.
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