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ARTICLE · 09 JULY 2017

Expert insights: M&A trends in Australian mining industry

The mining and metals industry in Australia is currently producing at record levels.

AustraliaEnergy and Natural Resources

What does the current market look like in the mining and metals industry?

The mining and metals industry in Australia is currently producing at record levels. According to the Australian Bureau of Statistics, the industry increased output by 6.2% and contributed a 6.9% share of the country's GDP in 2015–2016. The market has experienced a rise in confidence and market sentiment at the start of 2017 thanks to a period of stronger commodity prices. Some industry participants believe that the recent improvement in commodity prices will be short-lived as weaker long-term demand from China will keep prices depressed in the medium term. For now, many miners are making record profits as a result of the high commodity prices as well as a weaker Australian dollar and the benefits of cost resetting measures that producers implemented during the downturn in investment in the industry that started in 2012.

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