Australia rates second in the world for mineral production value, behind only China, and ahead of the vast United States, according to market researcher Statistia.
This hasn’t happened by accident, and it has taken many years of local knowledge, hard work, technological advancement and a pinch of luck for Australia to become the globally-renowned resource hub that it is today.
Before European colonisation
Evidence for First Nations people living on the land that would come to be known as Australia dates back more than 60,000.
And evidence of their mining prowess continues to be seen today.
First Nations people mined for ochre, a natural clay earth pigment that is a mixture of clay, sand and ferric oxide.
The Western Desert cultural bloc, which stretches across Western Australia, South Australia, Northern Territory and Queensland, as well as the Kimberley and Arnhem Land regions, are particularly well known for ochre.
Ochre has been used for thousands of years on these lands for burial ceremonies, body decoration, sun protection, the preservation of animals and in cave and rock art.
This author recently visited the World Heritage-listed Mungo National Park, in outback New South Wales, which is home to the remains of Mungo Man and Mungo Woman, First Nations people who were buried with red ochre tens of thousands of years ago.
The discovery of coal
Though Australia is known for its gold rushes, coal was discovered and mined very shortly after the arrival of the British in 1788.
“It is widely accepted that coal was first discovered near Newcastle in NSW,” Shaw and Partners Director of Corporate Finance Davide Bosio says.
“The mining of coal provided heating, cooking and the essential fuel to drive the steam engine, enabling the establishment of an early rail transport system and the development of industrial enterprise, reliant on the burning of coal for energy.
“However, the mining industry only played a minor role in the early colonial economy, as wool, agriculture and sandalwood production dominated the landscape until gold was discovered in 1823.”
The rush for gold
That discovery was made by a J McBrien, but it is likely the information was suppressed. There were further small-scale discoveries in 1839 by P E Strzelecki and Rev W B Clarke near Hartley, central NSW, but many Australians sailed for California in the late 1840s when gold was discovered there.
But by 1851, when gold rushes in NSW and Victoria began, Australia would become the envy of the world, as Bosio explains.
“News spread of vast fortunes being made and led to a wave of immigration with people from many parts of the world making the arduous trek to Australia to make their fortune,” he says.
“By the end of the decade, Australia was producing around 40% of the world’s gold and from there, the gold rush continued to spread through the country.
“In 1892 a discovery was made in Coolgardie, WA, sparking the WA gold rush.
“The Kalgoorlie region still operates as a producing gold town and is renowned globally as one of the most lucrative and prospective gold mining regions in the world.”
Gold decline
With such feverous interest, and a lack of technology to explore beyond surface depths, the gold industry began to decline in the early 20th century, Bosio says.
“Governments moved their focus toward the development of the agricultural industry, and many of the miners and prospectors found employment associated with the clearing of millions of acres of land ultimately used for farming,” he says.
“This created a large sandalwood export opportunity and the establishment of a wool industry driven by the creation of farmland, which then matured further into a significant meat and grain industry.”
“Many of the remaining explorers and operating mines were then affected by the First and Second World Wars.
“With the displacement of the male workforce that serviced many of the mining and farming operations, mines were abandoned until after 1945 when the industry began rebuilding and producing more mines and commodities, eventually becoming a major contributor to our economy.”
Iron ore boom
Australia’s reputation as a mining country was also harmed by a belief that Australia lacked a sufficient supply of iron ore reserves, primarily used for steel manufacturing, to adequately supply domestic use, as Bosio points out.
“As a result of this, the government imposed an iron ore export embargo in 1938 to limit the sale of this resource outside of Australia.
“In 1960, and following a significant lobbying period, the government decided to lift the embargo, which ultimately led to the second major resources boom in Australia’s history, following the gold rushes, and created what is today the largest export industry in the country.”
By the 1970s, Australia was producing 100 million tonnes of iron ore per year, with the majority coming from the Pilbara region of WA.
“Commodities now make up a significant portion of Australia’s export revenue, led by iron ore sales,” Bosio said.
Where we are today and the future
“The scale of mining today has increased phenomenally since the days of the early gold rush,” Bosio said.
“With the move to global electrification and the rapid emergence of the battery market, Australia is very well positioned to take advantage of this significant shift, and this is largely thanks to WA, which, as a State, represents close to 50% of global lithium production through its growing spodumene production industry.
“Other battery metals such as nickel, copper and graphite also are highly sought after with WA able to meet the growing demand through the successful discovery and development of mines producing these critical metals.
“With the rise of battery technologies and EVs, the need for magnets has become increasingly important, which has driven the demand for rare earth minerals, essential for the production of magnets as buyers seek to diversify sources of supply given the current reliance on key producers China and Russia.
“Our country has grown alongside our resources industry. With an incredible endowment of natural resources, Australia is positioned as one of the most crucial producers in the world and a country that is perfectly placed in terms of providing the materials needed to satisfy the ever-changing consumer."
- Daniel Paproth