Mining in New Zealand - Industry Market Research Report

Shafted: Volatile Global Commodity Markets Have Eroded Division Revenue and Profitability

The Mining division consists of operators that extract minerals and hydrocarbons, such as oil and gas, and provide support services to mining companies. The division's product mix is diverse, with oil and gas, gold, coal, construction materials and mining support services among the major product segments. Operating conditions have been volatile in the Mining division over the past five years, with volatility in global commodity markets throughout the COVID-19 pandemic significantly affecting division performance. Border closures and lockdowns have also affected division operations, with some firms facing production interruptions and labour shortages over the past two years. Overall, division revenue is expected to fall at an annualised 1.0% over the five years through 2021-22, to $5.4 billion. This trend includes expected growth of 4.2% in the current year, supported by recovering global oil and coal prices. Supply disruptions due to the Russia-Ukraine conflict are also expected to place upward pressure on global commodity prices over the current year.

The Mining division includes firms that engage in mineral or hydrocarbon (oil and gas) extraction and businesses that provide services to these firms.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.