Industry analysts blame a 10-year increase in the cost position at existing operations combined with skyrocketing new project capital costs, for the significant loss of global competitiveness by Australia’s mining sector. 

IntierraRMG says early production announcements for the December 2012 quarter demonstrate positive growth in the metals sector compared with the previous three months. 

Australia’s peak industry body for mineral exploration and mining, the Association of Mining & Exploration Companies (AMEC), says changes announced in last week’s Federal budget to the resources industry tax system are of great concern to the mining and exploration sectors. As expected, the budget contained measures to tighten the rules on exploration deductions for miners, aimed at netting $1.1 billion to the government over four years. 

Heavyweight broker Goldman has nickel, zinc and palladium as its top mining commodity picks in 2014, according to Proactive Investors. On the other hand, it is bearish on iron ore and copper forecasts for the next 12 months.