Experience
Energy & Resources
Australia is a commodity driven economy. Chinese dependence on Australian iron ore has supported our balance of payments, but there are significant changes which will change that balance.
Our Balance of Payments at a Federal level is dominated by our mining exports. The current energy crisis dominated by Russia’s Ukraine war and the global move to reduce greenhouse emissions has the potential to change Australia’s mining and energy generation.
The demand for solar power will mean significant government investment to the energy grid to realign our power generation and energy distribution footprint.
Key Challenges
- The Chinese construction industry is in turmoil impacting the demand for iron ore and steel. China is also making policy decisions to decrease its reliance on Australian commodities. In the coal sector a number of coal producers have already earmarked mines for closure by 2030 as our own coal fired power plants become obsolete.
- Exports are anticipated to continue accounting for a high proportion of division revenue over the next five years, mainly due to further increases in natural gas and iron ore exports, as foreign demand and production capacity expansions for a range of mineral commodities will continue to influence the sector’s performance over the next five years. Additionally, Australia has signed free agreements (FTAs) with both the UK and India in late 2021, which are due to come into force in early 2023. Both India and the UK represent significant export markets for Australian firms and FTAs, and both countries are anticipated to boost Australian export activity.
- The new Climate Change Act will drive demand for more renewables in an environment where there has been little investment in the past 10 years.
Our experience
The energy and resources sector takes into account both mining an energy generation and all the associated industries.
Olvera completed the restructure and transformation of a number of projects in the mining sector including mine closure planning and determination of rehabilitation costs for financial reporting.
Kate Barnet is an independent director of Gold Hydrogen Limited an ASX listed company focused on new technologies in the extraction of clean hydrogen.
Case Studies
Our case studies only include publicly identified clients.
