Minerals industry survey for 1988-89.

The Australian minerals industry, because of its high degree of export orientation, has been vulnerable to wild price swings which have been characteristic of world commodity markets over the past decade. Along with the other major exporters, the industry invested heavily in increased production capacity in response to high commodity prices in the late 1970s. The consequent strong worldwide supply response coincided with a downturn in world economic activity and demand for minerals. The results of the 1988-89 survey indicate that the improved performance of the Australian minerals industry, evident in the previous year's survey, continued. Growth in sales revenue and moderate cost increases resulted in record profit levels. This improvement in profitability allowed the industry to further reduce outstanding debt, particularly foreign debt. While, in real terms, considerably below levels attained in the late 1970s, a recovery in investment was evident, particularly in smelting and refining. There was also evidence of improved employment opportunities.
The Australian minerals industry, because of its high degree of export orientation, has been vulnerable to wild price swings which have been characteristic of world commodity markets over the past decade. Along with the other major exporters, the industry invested heavily in increased production capacity in response to high commodity prices in the late 1970s. The consequent strong worldwide supply response coincided with a downturn in world economic activity and demand for minerals. The results of the 1988-89 survey indicate that the improved performance of the Australian minerals industry, evident in the previous year's survey, continued. Growth in sales revenue and moderate cost increases resulted in record profit levels. This improvement in profitability allowed the industry to further reduce outstanding debt, particularly foreign debt. While, in real terms, considerably below levels attained in the late 1970s, a recovery in investment was evident, particularly in smelting and refining. There was also evidence of improved employment opportunities.