Technology & Innovation

The covid-19 push: Accelerating change in Australian industries | Mining

December 09, 2020

Australasia

The covid-19 push: Accelerating change in Australian industries | Mining

December 09, 2020

Australasia
Chris Clague

Managing editor Asia & Global editorial lead, Trade and globalisation

Chris Clague is managing editor in Asia for Economist Impact. He is an expert in international trade and trade policy and has also advised clients throughout the Asian region on the strategic implications of megatrends and political risk. He was a consultant in The Economist Group's Tokyo office and was the project leader and editor for the Economist Intelligence /Nikkei BP publication The World to 2050 (available in Japanese only). 

Prior to joining The Economist Group, he was a senior consultant and Director of China Operations for a boutique consulting firm that worked with governments and MNCs on issues related to international trade, investment, and commodities. 

Chris holds an MSc in Asian Politics from the London School of Oriental and African Studies (SOAS) and a certificate in International Trade Law and Economics from the World Trade Institute’s summer academy. He provides regular commentary on trade and the Japanese economy to international media.

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Mining in Australia: On the edge of change

The use of cloud services among businesses in Australia doubled between 2014-18 from 19% to 42%.¹ The mining sector has been no exception, with companies in Australia increasingly moving their on-site operations over to the cloud, and adopting a host of other technologies. 

Mining occupies a unique position in Australia’s economy. The sector (including mining services) accounted for more than 8 percent of Australia’s economy,² and resources contribute 62 percent of all Australian exports as of 2020,³ generating more export revenue than all other industries put together.

The importance of mining and resources runs far beyond just the economy, however. Average wages in the resources sector were higher than in any other,⁴ and it employed almost 243,000 people as of February 2020.⁵ Moreover, the industry also paid AU$39bn in tax in 2018-19,⁶ underscoring its importance to Australia’s socio-economic fabric.

This is particularly so of cloud and edge computing, which allow mining companies to focus on core business, save costs as they don’t need to invest in in-house tech and drive efficiencies, and manage real time mining and remote operations.

 


1 The economic value of cloud services in Australia. Deloitte. 2019. Available online at: https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-economics-value-cloud-services-australia-230719.pdf
2 The Australian resources sector - significance and opportunities. Australian Government - Department of Industry, Science, Energy and Resources. Accessed on 11 September 2020. Available online at: https://www.industry.gov.au/data-and-publications/australias-national-resources-statement/the-australian-resources-sectorsignificance-and-opportunities
3 Composition of the Australian Economy Snapshot. Reserve Bank of Australia. 4 September 2020. Available online at: https://www.rba.gov.au/snapshots/economycomposition-snapshot/pdf/economy-composition-snapshot.pdf?v=2020-08-06-16-50-59
4 The Next Frontier. Minerals Council of Australia. February 2019. Available online at: https://minerals.org.au/sites/default/files/190208%20The%20Next%20Frontier%20MCA%20Policy%20Priorities.pdf
5 Resources and Energy Quarterly. Australian Government - Department of Industry, Science, Energy and Resources. June 2020. Available online at: https://publications.industry.gov.au/publications/resourcesandenergyquarterlyjune2020/documents/Resources-and-Energy-Quarterly-June-2020.pdf
6 Estimates of royalties and company tax accrued in 2018-19. Minerals Council of Australia. 1 May 2020. Available online at: https://minerals.org.au/sites/default/files/Deloitte_Access_Economics-Royalties_and_Co%20_Tax_Estimates_Report_2018-19%20-%201%20Feb%202020.pdf

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