Mining shines as one of the Budget bright spots
23 July 2020
The Economic and Fiscal Update from the Federal Government indicates that mining will continue to be a budget bright spot for the future.
Treasury has forecast that mining exports will increase by three per cent in 2020/21 after a rise of only 0.5 per cent in 2019/20.
Mining investment in Australia is expected to grow for the first time in seven years by four per cent in 2019/20 and another 9.5 per cent in 2020/21.
Demand for iron ore from China coupled with decreased supply from Brazil, due to the pandemic, has benefited Australian exports.
The sector continues to create employment and revenue for Australia in this time of enormous economic uncertainty – and it is important to note that the strength of mining flows through to a strong mining services industry.
Companies that supply the large mining houses but also the exploration sector are doing very well at the moment.
With large amounts raised on the ASX by exploration and mining companies across the board, but with a particular focus on gold, the mining and exploration sector now has sufficient funds to invest in equipment, staff and drilling activities.
For other recent BDO insights on the Natural Resources sector: