For 40,000 years, the world didn’t know anything about Australia, the land down under. Now, Australia is one of the leaders in the gold mining Industry that operates Egypt, Indonesia, Africa and South America. Several large mining companies such as Newcrest and BHP are considered the world top mining companies all over the world, and they are all Australian-based companies.
The recent decline in the gold price hurt the mining industry much. News spawned around the internet about mining companies selling or shutting down. 20 May 2013 is another day to remember along with April 15. The consequences of these drops should affect the mining companies, which in turn will affect the Australian economy. The mining industry represents around 10% of Australian economy, and mining related economy represents another 9%. A total of 19% of Australian economy depends on mining.
To begin, Australia is 12th largest economy in the world with the 5th highest income per capita. It was discovered in 1606 by the Dutch, and Colonial Britain claimed it in 1770. There was some gold findings, but the main event started in 1851, the Australian Gold Rush. Around 28 major findings between 1851 and 1906 that each initiated a gold rush on its own. Some company towns were founded, and the society grew.
In early 20th century, mining in general boomed dramatically in the land down under. Australia succeeded to attract British capital for investment and building infrastructure. This environment encouraged mining industry to bloom even more. The result was a world-class enterprise like Newcrest Mining, BHP Billiton and Rio Tinto.
For instance, Newcrest Mining is ranked the world’s fourth gold mining company. It produced 58.77 tonnes of gold, and it haves additional 77 million gold ounce as reserves. It owns 100% of Cadia Valley Operation, one of the largest gold mines in Australia that produced 473,195 ounces of gold in 2012. The company owns 3 gold mines in Australia, 2 in Papua New Guinea and 1 mine in Indonesia that operates fully, other than its exploration projects.
This is not the only Australian gold mining company. There are other numerous mediocre and junior Australian gold mining companies. Some of them shut down because they weren’t prepared for such a drop in the gold prices. Nevertheless, the big boys still have lots of fight spirit in them, and they are ready for such market tides.
Australia might rival Canada in dominating gold mining industry in the upcoming years, but it still have a fight to win against gold devaluation and price slump.