Advanced Search
MyIDEAS: Login to save this paper or follow this series

Productivity in the Mining Industry: Measurement and Interpretation

Contents:

Author Info

  • Vernon Topp
  • Leo Soames
  • Dean Parham
  • Harry Bloch

    (Productivity Commission)

Abstract

Mining typically accounts for around 5 per cent of Australia's nominal market sector gross domestic product. Long lead times between investment in new capacity in mining and the associated output response can lead to short term movements in mining multifactor productivity (MFP) unrelated to underlying efficiency. Ongoing depletion of Australia's natural resource base is estimated to have had a significant adverse effect on long-term mining MFP. Over the longer-term, MFP impacts of resource depletion have been offset by technological advances and improved management practices. An increase in the use of open-cut mining has been a key development, along with a general increase in the scale and automation of mining equipment. An expected rebound in mining MFP from 2008-09 onward may be delayed as a consequence of the decline in world prices for many mineral and energy commodities in mid-to-late 2008. Any temporarily idle capital associated with production cut-backs and mine closures will tend to lower MFP. On the other hand, significantly lower commodity prices may lead mining companies to cut costs, with a positive effect on MFP. Despite the impact of the fall in mining MFP, the sector has made a significant contribution to the strong overall growth in national income so far this decade through a substantial improvement in Australia's terms of trade. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.pc.gov.au/__data/assets/pdf_file/0005/84911/mining-productivity.pdf
Download Restriction: no

File URL: http://www.pc.gov.au/research/staffworkingpaper/mining-productivity
Download Restriction: no

Bibliographic Info

Paper provided by Productivity Commission, Government of Australia in its series Staff Working Papers with number 0807.

as in new window
Length: 176 pages.
Date of creation: Dec 2008
Date of revision:
Publication status: Published by the Productivity Commission, Australia.
Handle: RePEc:ris:prodsw:0807

Contact details of provider:
Postal: Level 28, 35 Collins St, Melbourne Victoria 3000
Phone: 61 3 9653 2100
Fax: 61 3 9653 2199
Email:
Web page: http://www.pc.gov.au/
More information through EDIRC

Related research

Keywords: mining; resource depletion; multifactor productivity;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Michael Plumb, 2011. "Discussion of Productivity: The Lost Decade," RBA Annual Conference Volume, in: Hugo Gerard & Jonathan Kearns (ed.), The Australian Economy in the 2000s Reserve Bank of Australia.
  2. Tilton, John E., 2013. "The terms of trade debate and the policy implications for primary product producers," Resources Policy, Elsevier, vol. 38(2), pages 196-203.
  3. John E. Tilton, 2013. "Cyclical and Secular Determinants of Productivity in the Copper, Aluminum, Iron Ore, and Coal Industries," Working Papers 2013-11, Colorado School of Mines, Division of Economics and Business.
  4. Stephen J. Knop & Joaquin L. Vespignani, 2014. "The sectorial impact of commodity price shocks in Australia," CAMA Working Papers 2014-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  5. Isaac Gross & James Hansen, 2013. "Reserves of Natural Resources in a Small Open Economy," RBA Research Discussion Papers rdp2013-14, Reserve Bank of Australia.
  6. Benita Maldonado, Francisco J. & Gaytán Alfaro, Edgar D. & Rodallegas Portillo, Mayra C., 2012. "Un estudio no paramétrico de eficiencia para la minería de Zacatecas, México || A Non-Parametric Approach to Efficiency for Mining in Zacatecas, Mexico," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 14(1), pages 54-75, December.
  7. Huang, Yuanxi & Todd, Daniel & Zhang, Lei, 2011. "Capitalizing on energy supply: Western China's opportunity for development," Resources Policy, Elsevier, vol. 36(3), pages 227-237, September.
  8. Kushnir, Duncan & Sandén, Björn A., 2012. "The time dimension and lithium resource constraints for electric vehicles," Resources Policy, Elsevier, vol. 37(1), pages 93-103.
  9. Hajkowicz, Stefan A. & Heyenga, Sonja & Moffat, Kieren, 2011. "The relationship between mining and socio-economic well being in Australia's regions," Resources Policy, Elsevier, vol. 36(1), pages 30-38, March.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ris:prodsw:0807. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (MAPS).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.