Question

QUESTION 1

Name an Australian industry related to your engineering field. What is the contribution to the Australian GDP. N.B. Try to be as specific as possible. For example, if you are looking at mining see if you can find the contribution of a particular field.

QUESTION 2

Name three of the largest companies within the industry you have discussed in question one. If you can, identify or estimate the contribution of one of those companies towards the Australian GDP. N.B. public companies release annual statements that contain their figures, you can work backwards from there.

QUESTION 3

Identify and discuss a major project, product, or research being undertaken by one of those companies identified in question two. If you can, identify and discuss any funding derived from a government source.

QUESTION 4

Is your chosen industry going through growth or decline over the past decade? Provide a link to a source supporting your answer.

QUESTION 5

Can you identify any macroeconomic factors or government actions that may have impacted the growth of your industry over the last decade

Answer 1

1. Mining Industry

Mining is Australia's leading economy. He is Australia's biggest revenue source, an important employer in regional areas and a leader in innovation. According to the Australian Bureau of Statistics (ABS), mining accounted for 6 per cent of GDP in 2016 to 8 making it the fourth largest contributor to the Australian economy. With the broad economic participation of mining, technology and services (METS), this segment of the Australian economy is up 15 percent.

2. The biggest mining companies in Australia are:

• BHP Group
• Rio Tinto
• Fortescue Metals
• Newcrest Mining
• South32
• Evolution Mining

• BHP Key facts

  Market Cap: 137.5 Billion
  Headquarters: Melbourne
  Operations: Diversified
  Employees: 72,000 +

• Rio Tinto Key facts

  Market Cap: 114.4 Billion
  Headquarters: Melbourne
  Operations: Diversified
  Employees: 47,500 +

• Fortescue Metals Key facts

  Market Cap: 23.0 Billion
  Headquarters: Perth
  Operations: Iron Ore
  Employees: 5,455

• Newcrest Mining Key facts

  Market Cap: 16.2 Billion
  Headquarters: Melbourne
  Operations: Gold

• South32 Key facts

  Market Cap: 9.4 Billlion
  Headquarters: Perth
  Operations: Base Metals
  Employees: 15,545

Evolution Mining Key facts

Market Cap: 4.5 Billlion
Headquarters: Perth
Operations: Gold
Employees: 1,263

3. BHP to make sense of its $ 17bn potash project before February 2021
BHP has already invested US $ 2.7 billion in Jansen, making it the largest development in years.
BHP Group PLC (LON: BHP) has announced that it will make a final decision on saving money for the delay of its US $ 17bn Jansen delay project in Canada in February 2021.

Jansen, located about 140km east of Saskatoon, is expected to produce four tons a year of potassium-filled fertilizer.

In its performance report from September, the Anglo-Australian giant said it had allowed US $ 345mln in additional funding to lay the groundwork for the first phase of the project, with subsidized engineering services, repairing underground infrastructure, the completion of the port solution. , and the project risk continuity.

BHP has already pocketed US $ 2.7bn in Jansen, making it the largest development in years.

Elsewhere, the mining group worldwide posted that third-quarter copper production increased 5% in the last year to 430kt due to continued refinement progress.

However, this was offset by low emissions of key commodities including iron ore, coal, and petroleum, which stood at about 11% due to the Tropical Storm Barry in the Gulf of Mexico and the natural field of its portfolio decline.

The storm means a quarterly decline is faster than analysts' expectations, with BofA Merrill Lynch forecasting a 7% drop in fuel the following year.

By the end of September 2019, BHP had six major projects under development in petroleum, copper, iron ore and potash, with a combined $ 14 billion budget over project life.

Chief executive Andrew Mackenzie called it a "strong start" for the 2020 financial year and said that despite the expected impact of planned conservation and the decline in the natural gas fields ", the annual lead has not changed.

To awaken the future
RBC analysts reckon BHP will be "used to light" fuel for projects like other stages in the Atlantis and Mad Dog fields in Mexico, as well as a recent project approved by Ruby in Trinidad and Tobago. over the next three years, "which will help to offset the c.4-6% portfolio decrease in the coming years".

The Bank of Canada would not say: "Although power comes under criticism from the ESG (environmental, social and administrative) perspective, the production profile for the most part should help to differentiate the issue of equity issues with peers."

RBC called it the "most common quarter", to rate the miners 'Sector Perform'.

4. BHP Group Acquisition on Shared Growth.
As one of my advisors told me, the stock price follows the earnings per share (EPS). That means that EPS growth is considered really good by long-term successful investors. For me, I'm afraid that BHP Group has grown EPS by 59% a year, over the last three years. That kind of growth doesn't last long, but as a shooting star it's worth watching it when it does.

One way to double-check the growth of a company is to look at how earnings, and earnings before interest and tax information (EBIT) change. BHP group participants can expect that EBIT shifts have increased from 37% to 39%, and revenue is rising. It's good to see, in both numbers.

5. BHP Billiton's oil business is distributed in many countries. Oil is mainly found in regions, where there is a potential for conflict. Many oil-producing countries are facing strong political and commercial stability. BHP Billiton is also active in emerging markets, which may include additional risks that could have a material adverse effect on their operating profit.

There are various risk factors associated with fuel supply and demand. These include, escalation of tensions between Iran and the USA due to Iran's nuclear program, possible war between the Arab Nations and Israel, continental invasion of Nigeria, political invasion between Russia and Ukraine, possible terrorist attacks in -OECD or developing countries, high-risk conflicts, inflation, national redistribution, reunification or contracting of existing contracts, leases, concessions or other agreements, and changes in laws and policies, as well as other unforeseen risks. In many developing countries and conflict zones, there is a high risk of fraud due to high profits from the oil business and the involvement of public servants in this lucrative business. As a result of any lower risks associated with oil production can greatly influence BHP Billiton's supply and demand situation and ultimately affect their financial performance. Any oil business such as BHP Billiton's oil business invests in the long term, which requires long-term financial stability.
Due to the recent global financial crisis, many governments are currently facing an increased burden of debt and financial liability and may require additional financial and fiscal resources. They can therefore impose additional tax rates, high taxes or service taxes that are not accessible to oil production. If this happens to other companies BHP Billiton may incur additional deficit in its existence or any BHP Billiton operation affected by this kind of malicious scenario may adversely affect the outcome of the results and reduce expected future returns and overall level of future investment in those countries.

With the care of BHP Billiton, Australia's current Petroleum Resource Rent Tax (PRRT) will be extended to all Australian oil and gas projects, including the North West Shelf. The legislation is proposed to be introduced in the Australian Parliament at the end of 2011, and the date of commencement of the new tax regime will be July 1, 2012. Any increase / decrease in future tax changes may impact their financial performance.

The oil business could be adversely affected by new government regulation, such as export controls, exports and tariffs. Increasing demands regarding regulatory, environmental and social approvals are likely to cause significant delays in construction and could adversely affect the economy of new oil and gas programs, expansion of existing jobs.