The Australian mining boom began around 2003 when the price of commodities such as iron ore, copper and coal began to rise. This was very unusual because commodity prices were very low during the 90’s. This increase in commodity prices was spurred on by mainly China and other Asian countries experiencing rapid economic growth.
This economic growth cause a large construction boom in China requiring resources such as iron and coal. The price of iron went from 20$ a tonne to as high as 160$ a tonne. A similar increase occurred for the coal commodity.The main beneficiary of all of this was of course Australia. Australia contains in its resource rich lands 35 percent of all coal deposits. This increase in commodity price placed a huge demand on these resources that were naturally found in Australia.
The mining boom literally propelled the economy of Australia. The value of engineering work tripled from 2003 to 2013, The mining states of Australia contributed over 60% of GDP growth. The demand for resources used in construction allowed the Australian economy to thrive. The Australian mining boom was one of the most significant resource events in history. The rapid industrial development of rising Asian nations created huge wealth for the Australian economy. These energy resources were mined throughout Peel, Pilbara and the Goldfields were sold and shipped to China.
However, as of 2016 many think that the Australian mining boom is over. The main driver of the boom, China, has slowed down construction causing the commodity prices of iron and coal to fall and thus the mining in Australia has come to a halt. The Australian economy continues despite the aftermath of the mining boom. Economists recognize this boom as one of the many booms and busts of resources throughout history. Many compare it to the 1840s gold rush.
Either way the economic impact it left on Australia was huge.