Australia is a land rich in natural resources, and we have often benefitted from the richness these resources provide us. As a major trading country, we are also economically dependent on these mineral and energy resources — particularly iron ore, uranium, and natural gas.
Given that we depend on these resources so much, economic downturns and the end of the mining boom in 2012 have shown just how much Australia relies on traditional mining projects.
Concerns about depletions and scarcity of resources, along with environmental considerations, have made it abundantly clear that new mining solutions and technologies are required if Australia is serious about the future of the industry.
The Demand for Resources
Despite the aftershocks felt at the end of the mining boom, Australia is still a world leader in mining and holds a top-five position as a producer of important commodities.
Growth in developing countries, such as China and India, has unsurprisingly led to an increase in demand for mineral and energy resources. This continued agreement with countries like China can only help us in an increasingly globalised sector.
Resources and Mining Investment
There are many new technological innovations that could change the face of the industry. With the electric car revolution coming, the value of metals and minerals like lithium, nickel and cobalt will likely improve. Precious and rare metals will also be in favour as the focus on renewable technology increases.
Australian miners are also changing conventional mining practises with the added use of automation to extract commodities more efficiently.
Despite recent downturns in the commodity market (made more unstable because of China’s slowing economic growth in industry and construction), the previous decline in resource sector investment is set to lift with these ‘green shoots’ and tech advancements.
There are still profitable mining stocks and resource shares out there — you just have to know how, and where, to find them.
Money Morning is a good place to start.