The profits of Australian mining companies fell by almost 30 percent last financial year, according to the latest Australian Bureau of Statistics (ABS) data.
ABS Head of Business Statistics Robert Ewing said operating profits across all Australian businesses fell 8.6 percent in 2023-24.
“Tough operating conditions saw operating profits fall in seven out of nineteen industries,” Mr Ewing said.
He said the Mining industry saw operating profit fall by $66.7b, to $176.7b, as prices moderated from the $243.5b high of 2022-23.
“The high LNG, thermal coal, and spodumene (Australia’s main lithium mineral) prices seen in the previous year, unwound as global demand stabilised.”
Mr Ewing said the overall drop in profitability in 2023-24 reflected an economy responding to inflationary pressures, higher interest rates, and lower global demand in key sectors.
“While some industries benefited from stabilising input costs and strong domestic economic activity, others were impacted by weaker export conditions and higher labour costs.”
He said, in addition the mining sector, falls were seen in operating profits for the Agriculture, forestry and fishing industry (down $11.2b), and Rental, hiring and real estate services (down $12.3b).
“The largest rise in operating profit was reported by the Transport Industry ($19.4b).
“A large rise was also reported by the Construction industry (up $5.9b), with a large number of new and ongoing infrastructure projects driven by high government investment.”
