A Strong Start To 2022
It is a widely known fact that Western Australia owes much of its economic success to its mining and resource sector. The mineral-rich land and those who mine it can easily be considered responsible for the ongoing strength that the Australian economy relies on for steady global exports. Despite all the upheaval the world has been experiencing in recent times, WA finds itself amid a resource boom. Based on the last resource boom of 2013, it can be estimated that the benefits of this boom will filter to downstream sectors in Australia for many years to come – which is a welcome piece of good news for 2022! So, with the future looking bright for the mining and resource sector, what can we expect the next few years to look like?
In The Australian Bureau of Statistics’ most recent report on International Trade in Goods and Services (published in March 2022), it was recorded that an 8% increase was observed in Goods and Services Credits in the reporting period of December 2021 to January 2022. This increase was mostly due to a rise in exports of metal ores and minerals. The rise could be attributed to the ongoing global export disruptions caused by the COVID-19 pandemic, with more countries looking to alternative sources with more readily available materials. While other global events this year have turned more eyes to Australian resources than previous years, Australia’s Minister for Resources and Water, Keith Pitt, believes that the trend of global powers looking to Australia is set to continue: “The world is increasingly looking to Australia for the resources needed.” This boom comes at a time of revision of the 2022 Critical Minerals Strategy which looks predominantly at meeting future global demand.
Resource Booms in WA
While government bodies and reports look at the growth of exports and profits from one year to the next, what does all of it mean for Australian earth movers? Frankly, it’s good news. As demand for Australian metal ores and minerals is growing, there is a boost in Australia’s economy that will be invested in the mining sector and all related industries. It can be expected that not only the mining sector will be benefitted from a boom, but construction, engineering, finance and insurance, legal and transport are all sectors that could see business flourishing in coming months. In 2013, we saw an enormous expansion project for new and existing Western Australian mine sites which resulted in mining firms requiring more equipment and more workers to meet the high demand. This year, equipment manufacturers and workers are up for the challenge.
What’s the forecast?
The ongoing success of the mining and resource sector through years of challenges has set Australia up for a very promising 2022 and beyond. As the industry powers forwards, a unique opportunity for growth and innovation has presented itself. The 2022 Deloitte’s Tracking the Trends report indicates that innovation, sustainability and meeting the environmental, social and governance (ESG) commitments that have been made are real drivers towards an evolved world of mining. Steven Walsh (National Mining and Metals Sector Leader) suggests that these areas of focus for 2022 provide opportunities for leaders in the industry to “reorganise, generate new value, and forge partnerships to create a more responsible and attractive future for the industry.” The Australasian Institute of Mining and Metallurgy emphasise the importance of innovative mindsets which push boundaries while maintaining productivity and safety.
We have the experience
Productivity and safety have been cornerstones of Contatore Engineering’s 30 years of business experience in the production and supply of quality equipment. We use the combined knowledge of our team to deliver our customer’s exact requirements: top-of-the-line equipment completed with the finest high-grade materials. At Contatore Engineering, we build everything here in Western Australia, which means we’re all for local business booms! We’ve been around long enough to see the highest highs of resource booms and we have risen to the challenge of meeting and exceeding demands for earth moving equipment time and again. If you want to know more about why we are the preferred suppliers, read more here.