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Compared to many countries, Australia has a comparative advantage in the production of mineral commodities. This stems from a rich and diverse mineral endowment, high quality regional-scale geoscience information which lowers the risks of exploration, advanced exploration, mining and processing technologies, a skilled work force, generally benign physical conditions and low population density. These factors mean that modern mining can be undertaken in line with increasing community expectations for environmental and social performance.
World economic growth in recent years, particularly in China and India, has increased demand for mineral products worldwide. Australia is the world's leading producer of rutile, zircon, bauxite, iron ore and ilmenite, the second largest producer of alumina, gold, lithium, manganese ore, lead and zinc, the third largest producer of uranium, and the fourth largest of silver, nickel and black coal.
Even though Australia has large economic resources of many mineral commodities, this is not a guarantee that such resources will continue to be exploited in Australia. In an increasingly globalised and competitive commodity market, multinational mining companies continue to search for mineral deposits that will offer attractive returns on investment. Such returns are influenced by the quality of the resources (grade, tonnage, metallurgical properties) as well as environmental, social and political factors, land access and the location and scale of competing projects. Increasingly, minerals projects are being ranked by multinational companies against investment returns from other projects worldwide, particularly during periods of global financial stress.
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