What is the outlook for the mining sector in 2010?  

We are pleased to present our latest research report, Newport Consulting's 'Mining Business Outlook Report 2010-11', in which you will find out the challenges, focus areas and expectations of Australian mining companies for the next twelve months.

Mining in Australia is unquestionably an industry that is at the economic heart of the country. The development of the industry impacts all Australians in some way or form.

The last few months have been a turbulent time for the industry. The announcement of a Super Resources Profit Tax for 2012 (now renamed to the Mineral Resources Rent Tax) sent shockwaves through the industry and the local and global economy, evident by the dramatic falls in share prices at the time.

Having worked extensively in the mining industry and having a genuine interest in the development and movement of the sector, we felt it was  appropriate time to ask executives of both small and large mining companies about their thoughts on the economy, on recent government initiatives,  and their key priorities for 2010-11, and what is keeping them awake at night. We held a series of one hour, face-to-face interviews with more than mining executives.

The report's top three findings include: 

• There is a unanimous call (77%) for the Government to drop the new mining tax (renamed the Minerals Resource Rent Tax) altogether, despite the Prime Minister’s negotiations with the heavy weights of the industry.
• There is a growing level of optimism on the state of the economy with a large majority of mining executives interviewed (57%) saying that they are ‘somewhat optimistic’ of the state of the economy over the next 12 months. 37% are ‘very optimistic’.
• However these growing levels of optimism are not translating to an increase in spending with 57% of mining executives saying that spending will remain limited this financial year.

To learn more about the report's findings and download the report, please click here.