The Australian economy is considered to be referred to as the prosperous one in accordance with its mining, agricultural and service sectors. The overview of Australian economy has shown that this country is one of the most profitable on the international market with its GDP of $889 billion. The history highlights that Australia experienced uninterrupted economical growth and prosperity since 1980; though for the last few years its GDP average was expected to drop completely. Australian economy is merely characterized by western style with the largest service sector; the country is predominantly benefiting from commodities demand. Besides, Australia is known as the largest exporter of silver, gold, zinc, natural gas and food products. According to recent researches, the country suffers a world crisis in the most critical way; in order to improve current state of Australian economy, the country is to focus on the mining sector increase and enlargement of the uranium sector.
Sharp challenges in the sphere of Australian economy are connected with the following factors:
- World economical crisis;
- Population aging;
- Climate change;
- India and China projected expansion.
The problem lies in making economical sphere more productive, participative and flexible for it to experience strong growth despite world economical changes and inflationary influence.
Investigating the mining industry of Australia it is necessary to underline the fact that this sector is referred to as star performer of the country’s economy. A stable future for the state economy depends upon new resources finding; mining is the sector influencing and forming social, environmental and economical spheres of Australia. The country competitiveness in mining is advanced according to the sector exploration on the international level, as it was reported by the acting chief of Exploration and Mining Division, Dr. Steve Harvey, ‘By working closely with industry, we provide an exceptionally high financial, social and environmental return on investment’. (CSIRO Exploration and Mining, 2008).
The steps aimed at economic improvement in Australia should be focused on the mining sector enlargement as it is the fundamental issue in state industrial development. The rise of the human capital of Australia is of crucial importance; the importance of the mining industry is considered to be the principal stimulator for economical recovery. (Australian Economy, 2008)
The Australian mining industry is beyond the largest national sector in the international arena. It is necessary to underline the fact that Australian industry is diversified through mining and exploration activities; it is concentrated on the export of information technology, construction and other services. Major investments of the country are aimed at processing and mining facilities expansion. (CSIRO Exploration and Mining, 2008)
Current changes in the world economy made Australian industry be at high risk for investors; weakening in the economy sector resulted in financial instability and decrease rate of international competitiveness. (Gruen, 2006) the significance of Australian mining industry can be proved by the following statistics:
- Petroleum and Minerals provide 8,8% GDP;
- The level of employment is influenced by the development of mining industry (chemical and coal products, manufacturing activities);
- Investment rate – $12,7 billion in minerals, coal, petroleum and chemicals;
- Exploration expenditure – &1,7 billion.
According to Australian economical researches, mining industry influenced the improvements in the sphere of environmental performance. It should be stated that there appeared to be a progressive trend to mining co-regulation; this sector is focused on the combination of commands, incentives, penalties and control regulations. Such position is effective for creating appropriate functioning of regulatory systems through inserting more importance to coordinated manner before the approval of the mining project. Environmental management is focused on the formation of rehabilitation arrangements and development of non-regulatory approaches in order to achieve more efficient practices in Australian mining industry. Though in accordance with international standards, health and safety are not poor, there are some issues to be improved because of the number of injuries and diseases. (CSIRO Exploration and Mining, 2008)
The next aspect to be of great importance for Australian industry is considered to be uranium export. This sector is one of the principal stimulators for Australian economic stabilization though environmental authorities recognized uranium as the Hazardous Air Pollutant. Uranium supply is a problematic issue for Australian authority. The Uranium Association does not strive to export uranium to some countries which are not the part of non-proliferation treaty, ‘We believe, but we don’t have hard evidence that in the last year or so, as the pressures of climate change and also of energy security have grown ever more pressing, that the support of the export of Australian uranium has increased’. (Uranium Export unpopular amongst Australians, 2008)
Uranium mining is beneficial for Australian economy; more than 1200 people are busy with this Australian sector, 500 of them are focused on uranium exploration. Annual reports of Australian economical development show that more than $21 million is generated from uranium mines; $42 million are benefited from corporate taxes. Over the last few years Australian export of uranium has made over 22% of world mining supply. It is important to stress that Australian uranium is merely sold only for the purposes of electrical power generation. This aspect explains the fact that Australia belongs to the Nuclear Non-Proliferation Treaty. According to the latest data, Australia has exported more than 50,235 uranium tones benefiting $2,9 million. Uranium export is the principal part of Australian international trade cooperation supplying it to EU, Japan and USA. (Australian Economy, 2008)
The overview of Australian economy gives an opportunity to evaluate the principal sectors benefiting its improvement; the mining increase and growth in uranium supply will influence the development and recovery process of state economy. Mining industry in Australia is innovative and successful; it is considered to be the part of country’s economical stabilization and increased competitiveness in the international arena. The period of global economical crisis could be easily overcome through taking the necessary measures by state authorities concentrating on uranium export and industrial development.
It is important to underline the fact that Australian industry is known for its skills and commitment to development for the purpose of mining practice improvement and its presentation in the manner of environmental responsibility. Australian supply of uranium has always been considered to be fulfilled for peaceful purposes; it has never been used for nuclear weapons. Like many other developing and industrialized countries, Australia stimulates its economical improvement through manufacturing, service and trade sectors contributing to the world cooperation and economical stabilization.
References
Australian Economy 2008. (2008). Economics Help. Web.
CSIRO Exploration and Mining. (2008). Web.
Gruen, D. & Kennedy, S. (2006). Web.
The Australian Mining Industry. (2001). Web.
The Future of the Australian Economy. (2003). Web.
Uranium Export unpopular amongst Australians: Survey. (2008). ABC News. Web.