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I DA U N I V E R S A L J u l y -Au g u s t 2 0 1 5 19 continue growing over the period 2014-15 to 2019-20, with produc- tion volumes increasing and commodity prices recovering well in 2016-17. is will prop a tandem growth trend in the mining rental and repair markets, though margins will be tight and rental companies will be forced to augment their market by diversifying away from a reliance on mining and targeting eff orts toward other non-mining markets, such as aggregates and civil construction. e Australian Mining Equipment Repair and Rental Market with a focus on earth- moving and extraction equip- ment is part of the Industrial Automation & Process Control (http://www.industrialautoma- tion.frost.com) Growth Partner- ship Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. If you are interested in more information on these studies, please send an email with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com. ● www.en.starafrica.com TRENDS AND TIDBITS Australia is among the world's leading producers of several mined commodities, including coal, iron ore, gold and bauxite. As of 2015, Australia has a total of 420 operating mines for gold, coal, iron ore, copper, nickel and more, including nickel, zinc, tin, opal and bauxite. Mining accounts for about 10 percent of the Australian economy. New analysis from Frost & Sullivan, e Australian Mining Equipment Repair and Rental Market fi nds that over the fi ve years to 2011-12, stimulated by demand growth from China and other developing countries, the mining industry grew robustly, and prices for most commodi- ties increased, almost doubling the mining industries' income. is triggered a surge in invest- ment in new mining operations, particularly in the iron ore sector. Australia's signifi cant mining sector also stimulated the growth of a large METS (mining equip- ment, technology and services) industry which in total employs about double the workforce of the mining industry itself. "Prices for many mined commodities began declining considerably in 2013, and markedly since mid-2014, as a dual result of substan- tial increases in production coinciding with suddenly so er markets. is led to a signifi cant decline in mining investment, which directly impacted the market for equipment rental, as it is exposed to the construc- tion phase of mining operations. Consequently, rental equipment utilization rates have fallen signifi cantly, and rental prices Growth in Australia's Mining Production will Drive Mining Equipment Rental and Repair Market, Says Frost & Sullivan Mark Dougan, Managing Director, Australia & New Zealand, Frost & Sullivan have been impacted by cost control measures from major miners," said Mark Dougan, Managing Director, Australia & New Zealand, Frost & Sullivan. e mining equipment rental market is a fragmented and cyclical market and more exposed to the mining cycle than equipment repair & maintenance. Repair & maintenance expenditure has been relatively stable in recent years. Rental of earthmoving equipment is particularly exposed to fl uctuations in construction or expansion work, or providing additional production capacity. "As repair & maintenance expenditure is subject to mining production volumes and, hence, equipment utilization rates, as a result of a very sizeable increase in the equipment base over 2012 and 2013, the equipment repair market has continued to grow, spurred by the need for increased repair requirements," Dougan added. A good portion of the mining equipment repair and maintenance market is spent on earthmoving and extracting equipment, and expenditure is forecast to increase by 2019-20, propelled by increased mine production and the growing maintenance requirement of equipment installed during the investment boom. Although the outlook for commodity prices is currently negative, and the lower prices have resulted in reduced revenues for many mines which have fed through into operating cost reductions, mining produc- tion in Australia is forecast to Trends continued on page 21