Following QBR’s report on financiers being hit-hard by the economic crisis, IBISWorld reports that mining is yet another of its top-10 industries to feel the repercussions of a market collapse.

Australia’s largest export industry is facing dwindling demand and drop in mineral price for at least the next couple of years.

As a result staff are being retrenched by all the mining big-guns, including: OZ Minerals, Macarthur Coal, Xstrata and Rio Tinto.

Around 9,000 jobs have already fallen victim to the tough times, with more cuts in the foreseeable future.

Of BHP Billiton’s near 6,000 global redundancies, more than half will come from Australia – particularly at the loss-making Ravensthorpe nickel mine.

However, new mining projects based on coal seam methane gas may alleviate the pressures facing Queensland.

IBISWorld predicts overall mining revenue will see a fifth consecutive year of growth, with a 50 percent increase.

Higher prices for coal and iron ore and a weaker Australian dollar are key contributors to the windfall.

Despite this revelation, it is still predicted that overall mineral production will show little or no growth next financial year and only weak growth in 2010.

When strong demand from China and India re-emerges, coal and iron ore producers will again be the main beneficiaries.

Industry revenue and gross profit will still fall at average annual rates of around 5 percent until 2014.

While the statistics paint a weakening picture of the Australian mining industry, IBISWorld outlines various opportunities for companies to succeed.

It advises that businesses should take a long-term view and embrace strategies to lower costs.

Those which are not already overleveraged may also find this the ideal time to instigate more aggressive growth strategies.

Mining organisations may benefit from shifting their focus to supplying the expected growth in global infrastructure projects, such as those allocated in the US$1.7 trillion fiscal stimulus packages.

Finally, continuing to divest project interest in conjunction with the offer of commodity off-take rights is also listed as a beneficial move.

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