For information, on the Australian hard-rock mining industry, please contact Kate Wilkie at the U.S. Commercial Service in Melbourne (email: kate.wilkie@N0SPAM.mail.doc.gov ). 

For information, on the coal mining industry, please contact John Kanawati at the U.S. Commercial Service in Sydney (email:  john.kanawati@N0SPAM.mail.doc.gov ).

Overview

Australia’s market for mining equipment is approximately USD5 billion. Imports supply 70 percent. Australia is the second-largest export market, behind Canada, for U.S.-manufactured mining equipment. Effects of the current world economic crisis are likely to have a short-term negative impact on capital-equipment purchases. We expect the rate of growth to decline from ten percent in 2008 to one percent over the next two years.

Australian mining equipment manufacturers are particularly competitive in: fine coal cleaning and process control, strata reinforcement technology, and mining-related software. Major capital goods come from imports and from local subsidiaries of foreign companies. These products include: drilling equipment, front-end loaders, earthmoving and excavating equipment, compactors, and draglines. Major foreign suppliers of mining equipment include: the United States (35%), Germany (9%), and Japan (6%).

Importers are interested in products that can increase the longevity of capital equipment.

Industry experts forecast continuing demand for Australia’s mining commodities. Demand for U.S.-manufactured mining equipment will remain stable in the medium-term. Companies recognize U.S. products for their quality and will pay a premium to avoid heavy losses associated with equipment failure or production delays.

Best Prospects/Services

U.S. manufacturers enjoy a positive reputation for the quality of their products. Areas with potential growth include specialized treatment procedures for specific minerals and automation of operations. In the long-run, demand will increase for open-cut mining equipment as companies shift from underground to open-cut production. The market will remain steady for heavy equipment parts, especially for components designed to reduce maintenance costs.

Opportunities

For a listing of the new projects being considered by Australian Mining , please contact John Kanawati at email: john.kanawati@N0SPAM.mail.doc.gov

Trade Events

Queensland Mining and Engineering Exhibition
Date: September 22-24, 2009
Location: Hunter Valley Region, New South Wales
http://www.me.reedexhibitions.com.au/