The resilience and future of Australian manufacturing

Image: anankkml/stock.adobe.com

As Tradesales celebrates Australian Made Week, the company is proud to shine a spotlight on the incredible contributions of the Australian manufacturing sector.

May 20–26 is dedicated to recognising and supporting the products made in Australia and their vital role in the country’s economy.

Australian manufacturing has a storied history and continues to be a significant economic driver, providing employment to millions, fostering innovation, and enhancing the quality of life for all Australians.

Historical context and economic contribution

Manufacturing in Australia has a rich history dating back to the 1830s, when small steam engines were produced.

The sector peaked in the 1960s, contributing 25 per cent to the country’s gross domestic product (GDP) and employing almost a third of the workforce. Over the decades, the industry has seen a decline, with its contribution to GDP dropping below 10 per cent.

By 2004–05, the manufacturing industry employed 1.1 million people and exported products worth $67.4 billion. Despite these declines, manufacturing remains a crucial part of Australia’s economy, currently contributing 6.9 per cent to GDP and supporting 862,200 positions.

Manufacturing as an economic driver

Manufacturing remains a significant economic driver in Australia, encompassing various industries such as mining equipment, pharmaceuticals, and textiles.

It provides employment for over one million Australians, directly and indirectly supporting other sectors like transportation and construction.

Supporting other sectors

The manufacturing sector boosts other parts of the economy by supplying raw materials and goods, stimulating growth in agriculture, mining, retail, construction, and healthcare. This interconnection highlights the sector’s role in underpinning the broader economic structure.

An engine of economic growth

Manufacturing is vital for the Australian economy’s growth and future prosperity. It plays a crucial role in GDP and acts as an engine of growth, fostering economic stability and expansion.

The sector’s contributions to GDP underscore its importance in maintaining and enhancing Australia’s economic performance.

Innovation and research

Australian manufacturers, such as Tradesales, are at the forefront of innovation, constantly developing new products and technologies.

This drive for innovation requires significant investment in research and development which, in turn, leads to the creation of efficient and cutting-edge products that benefit consumers and enhance daily life.

Improving everyday life

Manufacturing significantly impacts daily life, producing essential goods such as food, clothing, electronics, and vehicles. The availability of these products ensures a convenient and efficient lifestyle for Australians, underscoring the sector’s role in improving quality of life.

Economic resilience and job quality

Despite a reduction in its share of GDP and workforce, manufacturing remains a resilient sector.

It is the fourth largest sector in terms of employment, with most jobs being full-time and offering benefits like paid leave. This resilience in job quality highlights the sector’s capacity to provide stable and quality employment.

Future prospects

The future of Australian manufacturing looks promising with policies like the Future Made in Australia initiative, which focuses on transitioning to net-zero emissions and developing industries like green hydrogen and critical minerals refining.

These initiatives aim to make Australia a leader in sustainable manufacturing practices. Trends such as automation, micro-training, and a focus on sustainable energy practices are also shaping the sector’s future.

Manufacturing in Australia has undergone significant changes but remains a cornerstone of the economy. Its ability to adapt and innovate provides substantial economic benefits and quality employment.

As the sector embraces new technologies and sustainable practices, it is poised to play an even more critical role in Australia’s economic landscape.

Support Australian manufacturing

To support this vital sector, consumers are encouraged to buy Australian-made products. Research indicates that if every household spent an additional $10 per week on locally made goods, it would inject almost $5 billion into the economy annually, creating 9,000 new jobs.

The commitment to Australian-made products is strong, with 91 per cent of Australians wanting more local options and 72 per cent planning to purchase more locally produced goods in the next year.

For those looking to engage directly with Australian manufacturing, Tradesales manufactures heavy-duty storage systems, workshop equipment and relocatable site solutions for heavy industries such as mining, construction, and defence, ensuring products are made to high standards, on time, and within budget.

By supporting such businesses, individuals can contribute to the growth and sustainability of Australia’s manufacturing industry.

Record mineral exploration in Tasmania

KELSIE HARFORD

Mineral exploration expenditure in Tasmania has hit a new record, with the latest Australian Bureau of Statistics (ABS) figures showing $43.1 million was spent in the 2023 financial year.

The jump marks a 31 per cent boost in mineral exploration in the state, which Tasmanian minister for resources Felix Ellis said is the highest level on record.

“The mining and mineral processing sector is a key pillar of the economy and contributes more than $2.8 billion a year in exports and supports more than 5800 jobs,” he said.

“We know the world will need the key and critical minerals that Tasmania has to help power the global shift to renewable energy and to support defence manufacturing.”

Ellis pointed to programs like the Tasmanian Government’s exploration drilling grant initiative (EDGI) and geoscience initiative as examples of its commitment to growth in the industry.

“The EDGI grants provide co-funding for greenfield targets that may lead to the discovery of Tasmania’s next new mine,” he said.

“Since the program began, there have been eight rounds released, with funding provided facilitating more than 16,000 meters of drilling.

“It is pleasing to see that the greenfield exploration investment of $5.3 million is the highest in a decade.

“The $2 million geoscience initiative is providing new data to underpin and de-risk the next generation of mineral exploration.”

Resource production is ramping up in Tasmania with a recent feasibility study between the Tasmanian Government and the Rotterdam Port Authority marking the state as a potential green hydrogen powerhouse.

The state hopes to begin exporting green hydrogen by 2030, with the study confirming conditions in the island State for production, domestic use and export are world-class.

Bridging the looming graphite deficit

TIM BOND

Renascor Resources’ Siviour graphite project is located on the Eyre Peninsula, South Australia.

With graphite demand outstripping supply, the market is bracing for a 777,000-tonne per year deficit by 2030. But movement in the mining sector – both traditional and innovative – may be set to change this.

One of the key raw materials in the green energy transition is graphite, but while Australia is a key producer of other battery metals such as lithium, nickel and manganese, there are no active Australian graphite mining operations.

Graphite is used as an input for anodes – one of two electrodes that make up a lithium-ion battery, with cathodes – made up of metals such as lithium, nickel and cobalt – the other electrode.

By 2030, demand for graphite is expected to hit four million tonnes (Mt) per year, roughly 75 per cent of which is for the lithium-ion battery market. Currently, the bulk majority of graphite comes from China.

The highest profile Australian-focused company in this sphere is Renascor Resources, which owns the Siviour battery anode material project in SA.

Siviour holds the second largest graphite reserve in the world, and the largest outside of Africa.

As recently as last week, the Renascor increased Siviour’s mineral resource by 25 per cent to an impressive 123.6Mt at 6.9 per cent total graphitic carbon (TGC), for 8.5Mt of contained graphite.

The company predicts the mine, when operational, to produce up to 150,000 tonnes per year for a 40-year life of mine.

“As the demand for graphite grows, long-life, high quality sources of new supply like Siviour are becoming increasingly important to the developing lithium-ion battery supply chain,” Renascor managing director David Christensen said.

In July this year, the company signed a Memorandum of Understanding with Mitsubishi Checmical Corporation for the potential sale of its graphite products from Siviour to the Japanese giant.

Founded in 2018, ASX-listed International Graphite was built on the premise that the industry would need more downstream processing capacity outside of China.

The company is developing a mine-to-market business model, whereby raw materials would be mined from its Springdale project in WA and fed into a downstream processing plant in the emerging renewable energy hub of Collie.

International Graphite similarly announced a significant increase to its graphite deposit at Springdale, which is the second largest in Australia behind Siviour.

The deposit grew from 15.3Mt to 49.3Mt at 6.5 per cent TCG.

Despite the 27 per cent increase, International Graphite managing director Andrew Worland said the company had only scratched the surface at Springdale.

“So far, exploration has been limited to approximately 10 per cent of the Springdale tenement areas. More than 80 per cent of the aeromagnetic anomalies on a portion of our tenure has yet to be tested,” Worland said.

Outside of Australia, interesting developments have been made.

New Zealand-based battery material company CarbonSpace recently secured an $18 million investment from a number of partners to commercialise production of what it calls ‘biographite’.

Biographite is produced from forestry and timber industry by-products, meaning a significant reduction in carbon emissions.

“Biographite has a carbon negative footprint, saving up to 30 tonnes of CO2 emissions per tonne of material compared to synthetic or mined graphite,” the company said.

“This investment represents a strong statement of support for sustainable sourcing of battery materials for global decarbonisation. With these partnerships, CarbonScape is another step closer to bringing biographite to market on a commercial scale.”

Bridging the looming graphite deficit

TIM BOND2 days ago

Renascor Resources’ Siviour graphite project is located on the Eyre Peninsula, South Australia.

Graphite is used as an input for anodes – one of two electrodes that make up a lithium-ion battery, with cathodes – made up of metals such as lithium, nickel and cobalt – the other electrode.

The highest profile Australian-focused company in this sphere is Renascor Resources, which owns the Siviour battery anode material project in SA.

Siviour holds the second largest graphite reserve in the world, and the largest outside of Africa.

As recently as last week, the Renascor increased Siviour’s mineral resource by 25 per cent to an impressive 123.6Mt at 6.9 per cent total graphitic carbon (TGC), for 8.5Mt of contained graphite.

The company predicts the mine, when operational, to produce up to 150,000 tonnes per year for a 40-year life of mine.

“As the demand for graphite grows, long-life, high quality sources of new supply like Siviour are becoming increasingly important to the developing lithium-ion battery supply chain,” Renascor managing director David Christensen said.

In July this year, the company signed a Memorandum of Understanding with Mitsubishi Checmical Corporation for the potential sale of its graphite products from Siviour to the Japanese giant.

Founded in 2018, ASX-listed International Graphite was built on the premise that the industry would need more downstream processing capacity outside of China.

International Graphite similarly announced a significant increase to its graphite deposit at Springdale, which is the second largest in Australia behind Siviour.

The deposit grew from 15.3Mt to 49.3Mt at 6.5 per cent TCG.

Despite the 27 per cent increase, International Graphite managing director Andrew Worland said the company had only scratched the surface at Springdale.

“So far, exploration has been limited to approximately 10 per cent of the Springdale tenement areas. More than 80 per cent of the aeromagnetic anomalies on a portion of our tenure has yet to be tested,” Worland said.

Outside of Australia, interesting developments have been made.

New Zealand-based battery material company CarbonSpace recently secured an $18 million investment from a number of partners to commercialise production of what it calls ‘biographite’.

Biographite is produced from forestry and timber industry by-products, meaning a significant reduction in carbon emissions.

“Biographite has a carbon negative footprint, saving up to 30 tonnes of CO2 emissions per tonne of material compared to synthetic or mined graphite,” the company said.

NSW Budget puts mining in the spotlight

ALEXANDRA EASTWOOD

NSW Treasurer Matt Kean will unveil requirements which force coal companies to reserve 10 per cent of their output exclusively for domestic use.

The 2023-24 NSW Budget has been released, reflecting the Government’s commitment to the mining and resources sector.

The Budget includes $5.2 million to establish Future Jobs and Investment Authorities. This will also assist coal-producing regions to develop new industries and economic opportunities as the state pushes for renewable energy.

Geological surveying has also been included in the Budget, with $27.5 million allocated to encourage critical mineral exploration in the state. It is hoped that the data will define areas of mineral or energy potential.

A total of $142.5 million has been allocated across the Natural Resources portfolio, including $113 million over four years for mine work health and safety. Legacy mine risk reduction has been allocated $48.5 million.

NSW introduced its new Critical Minerals Strategy earlier this month to provide the framework for the critical minerals and high-tech metals mining industry while providing certainty and direction for the growing industry.

The new document will include a sharper focus on domestic manufacturing, skills and training opportunities.

“I’m excited by the opportunities created by critical minerals in NSW. The new strategy will ensure the state is able to best realise the gains of the next mining boom,” NSW Minister for Natural Resources Courtney Houssos said.

“NSW is uniquely positioned to support global supply of critical minerals with our diverse mix of critical mineral and high-tech metal deposits and capacity to promote domestic processing and manufacturing.”

Intergenerational report maps out mining’s future

ALEXANDRA EASTWOOD

bhp, wind farm, wind, electricity, green

The Federal Government has released the 2023 Intergenerational Report, showing that Australia’s mining sector is set to benefit from the critical minerals push.

The Intergenerational Report is a “big picture view” of Australia’s economy over the next 40 years, projecting the outlook of the economy and the Australian Government’s budget to 2062-63.

Climate change and the necessity of net-zero emissions was a big focus in the report.

“Australia is in a strong position to benefit with some of the world’s largest reserves of critical minerals such as lithium, cobalt and rare earth elements, which are key inputs to clean energy technologies,” the report said.

“With abundant wind, sun and open spaces Australia also has the potential to generate green energy more cheaply than many countries.”

The report also said that the country’s mining sector is expected to evolve, as the abundance of critical minerals becomes a key player in the world’s shift to net-zero. However, the report also warns that coal demand is set to drop.

“Global demand for Australian thermal coal exports are expected to decline as our trading partners move toward net-zero emissions,” it said.

“However, Australia has some of the world’s largest reserves of critical minerals such as lithium, cobalt and rare earth elements. These, in combination with traditional strengths such as iron and aluminium are some of the essential ingredients in global emissions reduction as inputs for electric vehicles, batteries and renewable energy generation technologies.”

Australian Vanadium

澳洲钒储量占全球三分之一

一位行业领袖表示，澳洲各地的大型电池有一天可能会由一种鲜为人知的元素钒提供动力，并在澳洲本土制造。

8月9日，在西澳Kalgoorlie举行的Diggers and Dealers矿业论坛上，澳洲钒业（Australian Vanadium）行政总裁阿维森（Graham Arvidson）在一场关于这种矿物的简报会上表示，七年前，锂也处在同一个地位。

澳洲地质局（Geoscience Australia）的数据显示，澳洲拥有全球近三分之一的钒，但没有被开采。全球约80%的钒来自中国和俄罗斯，南非的产量更高。大多数钒被用来制造金属合金，但它也可以用来制造一种越来越受欢迎的电池，这种电池可能是长期储存能量以支持太阳能和风能发电的答案。

领先的钒液流电池制造商，如日本住友电气，在过去20年里一直在大量生产这种电池。

阿维森表示，澳洲可能成为矿物的主要供应国，而且已经有电池项目在进行中，这可能为更多的本土制造商打开大门。

前期成本可能更高，但钒电池的寿命超过20年，易于回收，可以在恶劣条件下生存，支持峰值能源需求，并且不需要其他矿物。它们也可以更紧密地放置在一起，或者堆叠成模块，因为它们不像锂基电池那样易燃。

世界各地都有在建的钒液流电池工厂，包括美国、中国、韩国和印度。

WA Govt outlines resources priorities with strategic report

The Western Australian Government has released its mineral and petroleum resources development strategy, prioritising six points including regional areas, exploration and streamlined approvals.

The first strategic priority is to cement the state as a leading global destination for exploration investment.

The report stated this will be achieved through the Government’s Exploration Incentive Scheme (EIS) which has generated $31 million in benefits to the State for every $1 million invested in the scheme.

Minister for Mines and Petroleum Bill Johnston said the Government must tend to several issues to encourage further investment.

“Central to this strategy is promoting our comparative advantages and investment opportunities, catering for current and future skills gaps, facilitating access to infrastructure, and investing in research and development,” Johnston said.

Research and development are discussed in the report’s fourth strategic priority: an evolving industry.

The report acknowledges the industry’s shift towards different commodities and parts of the supply chain, such as precious metals refinery.

The report uses Alcoa and South32’s alumina operations, IGO/Tianqi Lithium’s Kwinana facility, and BHP’s Nickel West battery metal supply as examples of the state’s ability to facilitate future-focussed mining and minerals operations.

“We expect demand for WA’s minerals to continue to grow, driven by the global transition to a low-carbon future and an increasing demand for electric vehicles,” Johnston said.

A major push to effectively regulate the industry was also a feature of the report, with multiple strategic priorities relying on the state doing so.

“The State Government recognises that an efficient and effective regulatory framework is essential for providing industry with the certainty required to make investment decisions, and is committed to support measures to streamline regulation while not compromising on environmental and social standards,” the report stated.

The most recent of the Government’s efforts in this area came in the form of Streamline WA which was launched in 2018 to enable easier business across the state.

The report also gave examples of major operations given the go-ahead in recent years.

“The ability of Western Australia’s regulatory system to allow for the expeditious approval of new mining operations has been demonstrated in recent years through the development of mines including IGO Limited’s Nova nickel-copper-cobalt project and Beacon Minerals Limited’s Jaurdi gold project,” the report stated.

Western Australian Premier Mark McGowan said the opportunities were significant for the State’s resources sector and wider economy.

“The opportunity to continue to grow and diversify our resources sector as a significant contributor to global advancements in the digital age, and the shift to reducing greenhouse gas emissions, are immense, and are expected to continue to provide outstanding economic and social benefits to the community well into the future,” McGowan said.

To read the report and learn more about WA’s resources strategy, click here.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.

BHP and Rio top PwC global miner report

Five Australian mining companies have been named among the world’s Top 40 miners in Pricewaterhouse Coopers’ (PwC) annual Mine 2021 report, with early forecasts suggesting the industry will record the second highest net profits in 18 years.

According to PwC’s 18^th annual report, BHP and Rio Tinto retained their positions as first and second on the list of the Top 40 global mining companies, while Fortescue Metals Group rose six spots on the list to fourth.

Newcrest Mining fell four spots from 14th to 18th, while South32 came in at 35th on the list, down from 28th last year.

According to PwC, based on production and commodity price forecasts, group revenue (excluding trading) for the Top 40 is expected to rise to US$700 billion ($903 billion), up 29 per cent.

BHP, Rio Tinto and Fortescue have distributed their highest ever dividends for the February 2021 reporting period when iron ore prices were lower, according to the report.

PwC global mining leader Paul Bendall said the Top 40 miners find themselves in an enviable position.

“Just as the world pivots to a more sustainable future reliant on a lower-carbon economy, the miners have a chance to think strategically towards a decarbonisation future and ESG agenda, and reap the long-term benefits,” he said.

“One such way is gaining access to materials necessary for customers to realise their bold net-zero targets.”

The report identified that companies with higher ESG ratings returned an average total shareholder return of 34 per cent over the past three years – 10 per cent higher than the general market index.

Bendall said there was undeniable value in top miners taking ESG seriously.

“This isn’t just about doing the right thing and appeasing shareholders, but there are long-term value creation opportunities at the ready for those who bake ESG into their core operating strategies, such as improved access to capital, and riding the wave of an ever-increasing thirst for low-carbon products,” he said.

“The top 40 mining companies have enjoyed tremendous growth in the face of challenging economic conditions, which begs the question: what will they do with their near record levels of free cash flow? There exists a massive opportunity to make a big, bold pivot towards the future – and reap the benefits of doing so.”

Bendall said the next challenge is to shift from short-term adaptation to long-term transformation.

“Miners need to think about how they’ll succeed in a world undergoing profound change due to the pandemic. These decisions will shape the future of the sector for decades to come,” he said.

彩涂钢材产品供应商 BlueScope 提高业绩预期，股价早盘高开

金属电镀和彩涂钢材产品供应商 BlueScope （ASX：BSL）周二发布公告称，BlueScope目前预计，2021财年下半年的息税前利润将在10亿至10.8亿澳元之间。高于之前7.5亿至8.3亿澳元的指导范围，但仍需取决于期间的外汇汇率和市场条件的变化。

BlueScope的董事总经理兼首席执行官Mark Vassella 说：”公司业务发展得越来越好，受益于强劲的产品利差、价格和需求的增长。BlueScope的所有团队在努力满足客户的特殊需求方面做得非常出色。”

“公司业绩也继续证明了我们业务模式的独特优势和价值。BlueScope是一家非常与众不同的钢铁公司，在利用新兴趋势方面处于令人信服的地位，例如对低密度和区域性住房以及电子商务和物流基础设施的需求。”

公司称，提高业绩预期的主要驱动力来自美国的North Star业务。自2月份提供业绩展望以来，中西部基准热轧卷钢价格强劲上涨–每公吨上涨约250美元。澳大利亚钢铁产品公司也受益于国内和出口钢材利差的改善。

此外，公司的扩建项目仍在进行中，新工厂将在2022财政年度的下半年投入使用。国内发货量目前超过了我们的预期–特别是在建筑和施工领域的高附加值产品。建筑产品部门目前预计将比2021财政年度上半年的收益有所改善，主要是由于北美涂层业务的利润率在钢价快速上涨的推动下有所加强。东盟业务的盈利也好于先前的预期，因为高于预期的钢材价格对利润率产生了有利的影响。

BlueScope钢铁有限公司是油漆和涂层钢材产品的制造商和分销商。其产品包括增值的金属涂层和油漆产品，热轧卷，冷轧卷，钢板以及管材。它在中国，印度，印度尼西亚，泰国，越南，马来西亚和北美拥有覆盖广泛的金属涂料，油漆和钢铁建筑产品业务。它为建筑，建筑，制造，汽车和运输，农业和采矿业的客户提供服务。该公司为整个亚洲的住宅和非住宅建筑业以及北美的非住宅建筑业提供服务。BlueScope 钢铁公司总部位于澳大利亚维多利亚。

公司截至2020年6月的2020财政年度的收入为113.242亿澳元，比2019财政年度减少9.9%。在2020财年，该公司的营业利润率为2.3%，而2019财年的营业利润率为10.2%。在2020财年，该公司的净利润率为0.9%，而2019财年的净利润率为8.1%。

公司股价早盘高开，截止发稿前，股价上涨1.93% 至22.475澳元。

text 【更多BSL股价走势和公告请点击BSL个股页面】

消息来源：

公司公告 BlueScope increases earnings guidance to $1.0Bn to $1.08Bn for 2H FY2021

Infrastructure priority list promises record investment

More than 40 new proposals have been added to the national project pipeline, now worth $59 billion.

Infrastructure Australia has released its priority list for 2021, with a record number of new investments included across the country.

Forty-four new proposals have been added to the project pipeline, now worth $59 billion, while 10 projects have been moved off the list and into the construction phase.

Infrastructure Australia chief executive Romilly Madew said regional investment became a focus for the list this year.

“More than half of the investment opportunities on the 2021 Priority List benefit our regional communities, as we continue to draw focus on equitable service delivery and investments that will deliver affordable and quality infrastructure services for all Australians, regardless of where they live,” she said.

Among the 44 new projects to make the List were the Parkes Bypass to connect Melbourne and Brisbane, Parramatta’s outer ring road capacity, and Melbourne to Adelaide freight rail improvements.

With 180 projects on the list, chief executive officer for Cement Concrete & Aggregates Australia (CCAA) Ken Slattery said there’s a bottleneck between the government’s words and its capacity to act on them.

“There is a concern that the list is fine, but how such a record level of investment actually gets translated into constructed projects is unclear,” Slattery said.

Chief executive officer of the Australian Constructors Association (ACA) Jon Davies said the list plays a key role in supporting the nation up from its knees, post-COVID-19.

“With this record number of new investment opportunities, all levels of government need to work with industry to ensure that projects are delivered in a timely and efficient manner that maximises the social and economic benefits of the government’s investment,” Davies said.

“This will be vital in a post COVID-19 world with high levels of government debt but no less of a requirement to construct productivity enhancing infrastructure.”

Slattery agreed, if the industry could survive COVID, it’s exactly what the nation needs to renew itself in the coming years.

“One of the things we’ve seen is a strong and viable construction sector represents the backbone of the economy and the fact the construction industry has been able to operate throughout [COVID-19] has meant there has been a strong level of support for businesses and employees,” Slattery said.

“We’re talking something like 1.1 million people employed by the building and construction sector who stayed in work and continue to pay taxes and continue to support the economy more broadly, which is vitally important.”

Slattery said the CCAA was pleased its direct consultation with Infrastructure Australia was seen in the list’s considerations.

“We are encouraged by Infrastructure Australia recognising the role of the supply chain in all of this, which is a relatively recent development,” Slattery said.

“In the past we’ve simply seen that big projects were identified, supported and pursued without any real thought on where the materials were going to come from.

“We’re of the view that Infrastructure Australia really are paying due consideration to that. What we need is that to translate in approval processes and approval times.”

Included in the 10 items to leave the list for the construction phases were Nowra Bridge (NSW), the M1 and Bruce Highway works (Queensland), and METRONET works (WA).