Australia punches well above its weight when it comes to resources.
Even back in 2018, according to leading market researcher Statista, Australia rated second in the world for mineral production value; about $211 billion, behind only China ($272 billion) and ahead of the United States ($137 billion).
And it started early; while Australia’s mid-1800s gold rushes weren’t the first - gold has been mined by Indigenous cultures for millennia, and the first recognised ‘rushes’ occurred in America - they were amongst the earliest in the 19th century and were prolific.
The rush for gold
Gold rushes in New South Wales and Victoria in 1851 were monumental, generating significant riches not only for those who found significant amounts of gold but also for the economies of the colonies.
“The early gold rush started in NSW near the town of Bathurst, and although the gold proved hard to find, Australia and its hidden riches made the colonies world famous as news spread of vast fortunes being made,” says Shaw and Partners director of Corporate Finance Davide Bosio.
“This created a wave of immigration with people from many parts of the world making the arduous trek to Australia, to make their fortune.
“Over this period, the early explorers had spread their sights on new territories and in 1851 the Victorian goldfields of Ballarat and Bendigo were discovered.”
These regional outposts are synonymous with Australia’s gold rush and retain the identification. Drive around Ballarat and you’ll see numerous references to the word ‘Eureka’ - a reference to the Eureka Stockade, a rebellion of gold miners against the Victorian government, which took place in the town.
“By the end of the decade, Australia was producing approximately 40% of the world’s gold,” Bosio says.
“From there, the gold rush continued to spread through the country and in 1892, a discovery was made in a small town called Coolgardie in Western Australia.
“This sparked the WA gold rush and has led to Kalgoorlie still operating as a producing gold town and being renowned globally as one of the most lucrative and prospective gold mining regions in the world.”
Mining development in WA and beyond
Though, as Bosio points out, the WA gold industry began to decline very early on in the 1900s, the economic development the gold rush brought was laying the foundations for a prosperous Australian mining future.
By the mid-20th century, iron ore would begin to dominate Australian exports, with a decision by the federal government to lift an embargo on the sale of iron ore outside Australia sparking a new wave.
“This decision ultimately led to the second major resources boom in Australia’s history and created, what is today, the largest export industry in the country,” Bosio says.
“The opening of the iron ore market created an enormous opportunity in the Pilbara region of Western Australia as the extent of unmined, high-grade ore became apparent.
“This led to a global rush of investment into Western Australia as the American, British and Japanese dominated the scene, looking to position themselves as key players in the growing global steel markets.
“The global spotlight was on the west and with the attention came significant funding from groups looking for more than just iron ore. The rush from the 60s led to discoveries in nickel, petroleum, copper and bauxite as well as further success within the gold sector.”
- Daniel Paproth