Australia’s mining sector continues to grow, and the mining equipment rental industry is growing with it. Recent studies reveal that mining and its related industries are now and will remain in demand for years to come despite the challenges.

1. Mining Sector Drives Demand
for Mining Equipment Rental
Services
Classic Hire
Address: 421 Carrington Street Hamilton Hill WA
Phone: (08) 9336 2500
E-mail: hamilton@classichire.net.au

2. Australia’s mining sector continues to
grow, and the mining equipment rental
industry is growing with it. Recent studies
reveal that mining and its related
industries are now and will remain in
demand for years to come despite the
challenges.
A Look into Australia’s Mining Industry
Mining is one of Australia’s most profitable sectors, accounting for about 10% of the
economy. The country has around 420 operating mines that produce coal, iron ore,
gold, bauxite and other sought-after mining commodities. While these figures prove
that mining is already a lucrative venture, a study by Frost and Sullivan revealed that
it would be more so in the future.
They revealed that the mining industry grew robustly over the five years to 2011-12.
Prices for most commodities rose and almost doubled the mining industry’s income due
to increase of demand from China and developing countries. Demand will rise further
because of the growth of new mining opportunities like the iron ore sector.
Impacts to Mining Equipment Rental Services
The increase in mining activity spurred a demand for related industries like equipment
rentals. The booming mining sector stimulated the growth of a large METS (mining
equipment, technology and services) industry, which employs about twice the quantity
of workforce of the current mining industry.

3. The hire and rental industry of Australia is currently worth around $4 billion, with
mining equipment contributing to most of the figures. Researchers predicted that
figures would grow further as mining activity expands.
The Australian Mining Equipment Repair and Rental Market report revealed that
expenditure for mining rental and repairs markets would grow by 2019 – 2020.
The increase in commodity production spurred demand and maintenance
requirement of mining equipment rentals.
Challenges and Solutions
Mining and its related industries are not without challenges. Demand for mining
commodities and rental equipment have been unstable in recent years. In
addition, some companies rule out new mining projects, rendering labourers and
equipment providers without sources of income.

4. To address this, mining equipment suppliers are selling or leasing to contractors in
construction projects and other industries that also use heavy equipment.
These findings prove that the mining sector will continue to fuel the Australian
economy and drive mining equipment rental companies despite the occasional
slump. Rental companies diversifying their markets are growing even stronger, and
may well avoid a bust in their primary industry should it come.
Resources:
http://www.classichire.net.au/
http://www.abc.net.au/news/2015-04-28/mining-boom-merely-entering-new-
phase-says-govt-economist/6428956
http://www.worldcoal.com/mining/05062015/Mining-rental-and-repair-markets-to-
grow-to-2020-/
http://www.abc.net.au/news/2015-09-30/wa-mining-equipment-suppliers-suffering-
in-downturn/6818154