Leslie Massey
Australia has a rich history of mining and is a leading producer of minerals globally. Mining has been a significant contributor to the Australian economy, providing export income, royalty payments, and employment opportunities. The country has a wide variety of minerals, gems, and ores, with mining activity occurring across all its states and territories. Australia's mineral wealth includes coal, iron ore, bauxite, gold, manganese, lead, zinc, copper, nickel, uranium, and precious stones such as opal, diamond, ruby, sapphire, and jade. The discovery of these minerals has shaped the country's economic landscape and influenced population growth, with mining booms, such as the gold rush of the 1850s, attracting immigration. Australia's vast mineral resources continue to play a crucial role in its domestic and international trade, with the country exporting raw materials and importing refined products, contributing significantly to its economic growth and global standing.
| Characteristics | Values |
|---|---|
| Mining activity | All states and territories |
| % of land surface impacted by mining | 0.02% |
| Significant areas | Goldfields, Peel, Pilbara regions of Western Australia, the Hunter Valley in New South Wales, the Bowen Basin in Queensland, Latrobe Valley in Victoria, and various parts of the outback |
| Mining towns | Kalgoorlie, Mount Isa, Mount Morgan, Broken Hill, and Coober Pedy |
| World's largest producer | Iron ore, bauxite, opal, and diamonds (until Nov 2020) |
| World's second-largest producer | Gold, manganese, lead, and coal |
| World's third-largest producer | Zinc, cobalt, uranium, and silver |
| Other notable rankings | Fifth-largest producer of salt, sixth-largest of copper and nickel, eighth-largest of tin, fourteenth-largest of phosphate, and fifteenth-largest of sulfur |
| Other notable minerals | Clays, mica, dolomite (limestone), building materials, refractories, abrasives, talc, asbestos, and gemstones |
| Energy sources | Hydroelectric generation (Tasmania), fossil fuels (coal), and thermal stations |
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What You'll Learn
Australia's coal reserves and exports
Australia is one of the world's major coal producers and exporters. In 2020, the country held 14% of the world's coal reserves, ranking third behind the United States (23%) and Russia (15%). Australia has two types of coal: high-quality bituminous coal (black coal) and lower-quality lignite (brown coal). Black coal is mined in Queensland and New South Wales and is used for both domestic power generation and export, while brown coal is mined in Victoria and South Australia and has a lower thermal value due to its high water content.
Australia exports coal to many countries, with its first coal exports going to India. In the 1940s, Australia began exporting coking coal to Japan to aid in their steel production, and by 1986, Australia was supplying around half of its coal exports to Japan. Australia became the number one coal exporter in 1984 and ranked second behind Indonesia for total coal exports in 2021-22. In 2022, Australia accounted for nearly 7% of global coal production, ranking fifth behind China, India, Indonesia, and the United States.
Coal has been integral to Australia's economy and energy production. In 2021, coal accounted for 64% of energy production and 32% of the Total Energy Supply (TES) in Australia, with 93% consumed by the heat and electricity generation sector and 7% by the industrial sector. Coal was responsible for 30% (164 million tonnes) of Australia's greenhouse gas emissions in 2019, excluding methane and export coal. In the same year, coal as a fuel was responsible for 41% (160 million tonnes) of carbon dioxide emissions in the country.
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The discovery of copper in South Australia
The copper deposits in South Australia were substantial, and by the 1860s, the region was known as the "Copper Kingdom," boasting some of the largest copper mines globally. The copper industry in South Australia experienced a period of great prosperity, with mines like Wallaroo and Moonta producing over £20 million worth of copper. This wealth had a significant economic impact on the region, with South Australia contributing 53% of the copper produced in Australia by 1907, the bulk of it coming from the Copper Triangle.
However, the industry faced challenges as well. The catastrophic fall in base metal prices at the end of World War I had severe consequences, leading to the closure of mines and smelters by 1926. This resulted in a long hiatus in copper production in South Australia until large-scale extraction resumed at Kanmantoo and Lake Gunson in the 1970s and 1980s, respectively. The resurgence of copper mining in South Australia continued with the discovery of a large copper-gold-uranium ore body at Olympic Dam in 1975, leading to the development of the outback town of Roxby Downs and the commencement of mining operations in 1988.
Today, Australia continues to be a significant producer and exporter of copper. In 2016, Australia was ranked as the second-largest producer of copper worldwide, behind Chile, according to the United States Geological Survey (USGS). The country holds a substantial portion of the world's copper reserves, with several mines of international importance, including the Olympic Dam copper-uranium-gold deposit in South Australia, which is mining one of the largest copper-bearing deposits globally.
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Diamonds in the Kimberley region
Australia has a long history of mining, which has contributed significantly to its economy. Mining has also encouraged population growth through immigration, with mining booms such as the gold rushes of the 1850s. Today, mining occurs in all states and territories of Australia, with particularly significant areas being the Goldfields, Peel and Pilbara regions of Western Australia, the Hunter Valley in New South Wales, the Bowen Basin in Queensland, and Latrobe Valley in Victoria.
The Kimberley region, specifically, is known for its diamond mining past. Kimberley is the capital and largest city of the Northern Cape province of South Africa. The city is located approximately 110 km east of the confluence of the Vaal and Orange Rivers. Kimberley has considerable historical significance due to its diamond mining history and the siege during the Second Boer War.
The first diamonds in the region were discovered in 1871 on Colesberg Kopje by Esau Damoense (or Damon), the cook for prospector Fleetwood Rawstorne's "Red Cap Party". This discovery sparked the famous "New Rush", attracting thousands of miners to the area. By 1914, 50,000 miners had dug the "Big Hole" or Kimberley Mine, yielding 2,722 kg of diamonds.
The British businessmen Cecil Rhodes and Barney Barnato made their fortunes in Kimberley, with Rhodes establishing the De Beers diamond company. The Kimberley diamond, a 70-carat, champagne-coloured, flawless stone was discovered in the Kimberley Mine and became part of the Russian Crown Jewels. It was recut in 1921 and again in 1958 to improve its proportions and brilliance. Today, it weighs 55.09 carats and is owned by an undisclosed collector.
The Kimberley Declaration, published by the Indigenous Peoples Council on Biocolonialism in 2002, addresses the respect, promotion, and protection of traditional knowledge systems in the region. The South African Minister of Mineral Resources, Susan Shabangu, has also recognised the role of the Kimberley Process Certification Scheme (KPCS) in minimising the "blood diamond" trade and improving the lives of those dependent on the diamond trade.
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The Snowy Mountains hydroelectric complex
The Snowy Mountains Hydro-Electric Scheme, also known as the Snowy Scheme or Snowy Hydro, is a hydroelectricity and irrigation complex in south-east Australia. It is located in the Snowy Mountains in southern New South Wales, which form the highest section of the Great Dividing Range, running from Victoria to Queensland. The Scheme is one of the most complex integrated water and hydro-electric power schemes in the world and has been designated a "world-class civil engineering project" by the American Society of Civil Engineers.
The Snowy Mountains Scheme consists of sixteen major dams, eight power stations (including two underground), two pumping stations, and 225 kilometres of tunnels, pipelines, and aqueducts. The Scheme captures the water of the Snowy River and some of its tributaries at high elevations and diverts it inland to the Murray and Murrumbidgee Rivers irrigation areas. The Scheme includes two major tunnel systems constructed through the continental divide of the Snowy Mountains, known as the Great Dividing Range.
The Snowy Scheme was first proposed in 1937 by the British engineering consultancy Rendel, Palmer & Tritton, who recommended building a 250-megawatt hydro-electric project on the Snowy River. However, the outbreak of World War II delayed the project, and it wasn't until 1949 that the Snowy Mountains Hydro-Electric Power Act was enacted, enabling the formation of the Snowy Mountains Hydroelectric Authority. Construction officially began on October 17, 1949 and took 25 years to complete, finally finishing in 1974.
The Snowy Mountains Hydro-Electric Scheme was a massive undertaking, employing more than 100,000 people from over 30 nations, with migrants making up about 65% of the workforce. The construction of the Scheme involved building seven townships and over 100 camps to house the workers, as well as 1,600 kilometres of roads and train tracks. The Scheme has had a significant impact on Australia's cultural mix and has been a catalyst for preparing a new generation of Australian engineers. Today, the Snowy Scheme continues to generate power, providing a significant portion of Australia's renewable energy.
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The world's largest open-pit iron ore mine
Mining has long been a significant primary sector industry in Australia, contributing to the country's economy through export income, royalty payments, and employment. In 2019, Australia was the world's largest producer of iron ore and bauxite. Australia has mining activity in all of its states and territories, and the industry is a major exporter of raw materials, with energy and minerals constituting two-thirds of the country's exports to China.
In Australia, the Mount Whaleback mine in Western Australia is known for being the largest open-pit iron ore mine in the country. It is owned by BHP Group and is estimated to have produced 66.99 million tonnes of iron ore per annum (mtpa) in 2023. The mine is expected to continue operations until 2052. Other notable open-pit iron ore mines in Australia include the Jimblebar Hub, Area C Mine, and South Flank Project, all located in Western Australia and owned by BHP Group. These mines have estimated production outputs of 66.8 mtpa, 58.47 mtpa, and 56 mtpa, respectively, as of 2023.
On a global scale, the Carajas mine in the state of Para in Northern Brazil is recognized as the world's biggest iron ore mine, with proven and probable reserves totaling 7.27 billion tonnes as of December 2012. The mine is owned by Vale and operates as an open-pit mining operation targeting the Serra Norte, Serra Sul, and Serra Leste iron ore deposits. In 2012, the mine produced 106.7 million tonnes of iron ore, with expansion projects aiming to increase production capacity further.
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Frequently asked questions
Australia has an abundance of industrial minerals, including clays, mica, salt, dolomite, and asbestos. The country is also a major producer of precious stones, including opals, diamonds, rubies, sapphires, and jade.
Australia ranks among the top four in economic resources for 21 primary industrial minerals, more than any other nation. In 2019, Australia was the world's largest producer of iron ore and bauxite, the second-largest producer of gold, manganese, and lead, and the third-largest producer of zinc, cobalt, and uranium. Australia is also estimated to have 14% of the world's coal reserves and is a major exporter of coal.
Mining activity can be found across all of Australia's states and territories, with particularly significant areas including the Goldfields, Peel and Pilbara regions of Western Australia, the Hunter Valley in New South Wales, the Bowen Basin in Queensland, and Latrobe Valley in Victoria. Places such as Kalgoorlie, Mount Isa, Mount Morgan, Broken Hill, and Coober Pedy are known as mining towns.
