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Australia Resource Investing 101

If you’re curious about the Australia investing buzz that’s been happening in recent years, we’ve got a quick summary of how it started and where it’s going.

If you’re reading this, chances are you’ve seen some of the recent buzz around Australia as a destination for resource investment and potential profit.

Australia ranks as the 13th largest economy in the world, due in no small part to its mineral largess. Between 2010 and 2020, mining contributed an impressive 10.4 percent to Australia’s economy, translating to a gross domestic product of AU$202 billion.

The country is a global mining hotspot, and its abundant natural resources and government incentives have attracted some of the mining industry’s biggest names: BHP (ASX:BHP,LSE:BHP,NYSE:BHP), Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) and Newcrest Mining (ASX:NCM,OTC Pink:NCMGF).


Nearly half of the companies trading on the Sydney-based Australian Securities Exchange (ASX) — the primary stock exchange in Australia — are listed in the basic materials and energy sectors.

The state of Western Australia is one of the world’s premiere mining jurisdictions, coming in fourth after Nevada, Arizona and Saskatchewan. According to the Fraser Institute’s Annual Survey of Mining Companies 2020, three other Australian states and territories rank in the top 20 mining jurisdictions in the world: South Australia (seventh), Queensland (16th) and the Northern Territory (19th).

Australia has been a plentiful provider of diverse commodities in the resource investment space for over a century; if you’re curious about exploring it for yourself, here’s a quick guide on the origins of the country’s resource industry, the current landscape for mining investment and future opportunities.

Australia investing: The beginning

European settlers first arrived in Australia in the 1780s, and by the 1790s whale oil and baleen (whalebone) had become the colony’s first major exports.

When the 1820s rolled around, the economy grew exponentially through fine wool production. By the 1830s, wool had overtaken whale oil as the colony’s biggest export, with New South Wales replacing Germany as Britain’s primary supplier by 1850.

1851 saw the beginning of a major gold rush in Australia, causing the area’s population to surge from 430,000 to a whopping 1.7 million by 1871. In 1901, Australia’s first federal government was formed, and for the next 30 years, agricultural goods remained one of the country’s biggest exports, with wheat and dairy products being added to the roster.

The UK was Australia’s biggest export destination by the early 1960s, but it had begun to enhance its relationship with its European neighbours. At the same time, Australia was working to strengthen its ties with Asia, and by 1966/1967 Japan had become the country’s biggest export destination.

While Australia’s economic roots were formed in the agricultural sector, the 1970s brought a surge of mineral and fuel exports, driven specifically by iron ore and coal.

Fast forward to 2013/2014, and iron ore, coal and natural gas had become the country’s top three exports, with rural commodities falling to the wayside.

During this transitional period, Australia’s trading relationship with the UK further waned as Japan and China became the country’s two primary export destinations. China eventually overtook Japan as Australia’s leading export partner in 2009/2010, and according to a report from Australia’s Department of Foreign Affairs and Trade, the UK made up only 1.4 percent of Australia’s exports by 2013/2014.

Australia investing: Current opportunities

Today, Australia’s mining industry is comprised of more than 350 mines and the production of 19 different mineral commodities. Gold mines are the most common operations, and according to the US Geological Survey, the country is the world’s second largest gold producer.

While Australia’s major gold rush took place over a century and a half ago, current industry trends show that there is still much to be explored, discovered and put towards modern-day industries and technologies. You can find a number of gold investment opportunities to consider in the Investing News Network’s (INN) Best Gold Stocks on the ASX article.

Along with precious metals, Australia’s most valuable mineral exports include base metals, battery metals and energy resources. The country leads the world in iron ore production, and is also an important source of global aluminium, nickel and copper supply.

Western Australia is a key nickel-mining jurisdiction within Australia, and accounts for 90 percent of the country’s economic reserves of the metal. BHP and Glencore (LSE:GLEN,OTC Pink:GLCNF) both have nickel-mining operations in the state. Other important nickel stocks for investors to watch include IGO (ASX:IGO) and Mincor Resources (ASX:MCR,OTC Pink:MCRZF). Those interested in learning more about nickel opportunities should check out INN’s article Nickel Stocks in Western Australia.

Australia is second only to Chile when it comes to copper reserves, and the red metal reigns supreme in the South Australia, which is home to the world’s fourth largest copper-producing mine, BHP’s Olympic Dam. Other nickel operations in South Australia are OZ Minerals’ (ASX:OZL,OTC Pink:OZMLF) Prominent Hill and Carapateena mines. INN’s Copper Stocks in South Australia and Copper in Australia articles offer investors further insight on what to know about the base metal in the country.

Aside from that, Australia is abundant in energy resources such natural gas and uranium. With more than a dozen basins that yield natural gas, Australia hosts significant natural gas reserves. Natural gas is the country’s third most valuable resource export, as per the most recent data from the Department of Foreign Affairs and Trade, earning more than AU$49 billion for the economy. Chevron (NYSE:CVX) and Shell (LSE:RDSA,LSE:RDSB,NYSE:RDS.A,NYSE:RDS.B) are the biggest natural gas producers in the country.

Uranium is another important sector in Australia’s resource industry. The country is the third largest uranium producer globally and hosts more than one-quarter of the world’s known uranium resources. Both of the country’s two producing uranium mines are in South Australia: BHP’s Olympic Dam mine, the largest-known uranium deposit in the world, and the Four Mile mine, owned by Quasar Resources.

In recent years, Australia has also come to dominate the global lithium industry and is well positioned to capitalise on the rapidly growing electric vehicle market. Increased demand for lithium has proved positive for ASX-listed lithium stocks. The nation ranks second in the world for lithium reserves behind Chile, but when it comes to annual lithium production Australia’s output is more than twice as high.

Australia’s largest lithium mine is Greenbushes, which is majority controlled by China’s Tianqi Lithium (SZSE:002466), the largest hard-rock lithium miner in the world. Tianqi owns a 51 percent stake in Talison Lithium, which operates the mine, while major producer Albemarle (NYSE:ALB) owns a 49 percent stake in Talison via its acquisition of Rockwood Holdings.

Rare earths are another important commodity segment for technology, and Australia is set up to take advantage of opportunities in this market too. The country holds the sixth largest-known rare earths reserves in the world, and rare earths production in Australia has been rising over the last few years.

Northern Minerals (ASX:NTU) opened Australia’s first heavy rare earths mine in 2018, producing heavy rare earths products such as dysprosium, which is used in permanent magnet technology. Lynas (ASX:LYC,OTC Pink:LYSCF) operates the Mount Weld mine and concentration plant in Western Australia, and the company recently announced plans to boost production to 10,500 tonnes per year of neodymium-praseodymium products by 2025.

Other rare earths projects in the country include Australian Strategic Metals’ (ASX:ASM) Dubbo project in Central New South Wales, Arafura Resources’ (ASX:ARU,OTC Pink:ARAFF) Nolans project in the Northern Territory as well as Hastings Technology Metals’ (ASX:HAS) Yangibana project in Western Australia.

Australia investing: Investor takeaway

Australia’s abundant natural resources, close proximity to export partners, top-notch mining jurisdictions and plethora of publicly traded mining companies together put the country in a unique position to be a leader in the global economy of the 21st century. Investors with an eye on lucrative opportunities in the resource sector would do well to consider Australian mining stocks and further educate themselves about the Australian mining outlook.

As a resource-intensive economy, the Australian dollar moves with the commodities the country exports. Those who play the Australian market should have an understanding of how the Australian dollar impacts miners and look to where the Australian to US dollar conversion rate is trending.

This is an updated version of an article first published by the Investing News Network in 2018.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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The mining and resources sector now sets its sights on Australia’s largest mining investment forum, Mines and Money @ IMARC, co-located with IMARC from January 31, 2022, to February 2, 2022, at the Melbourne Showgrounds.

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Over the past decade, Rio Tinto has developed a laboratory-proven process that combines the use of raw, sustainable biomass with microwave technology to convert iron ore to metallic iron during the steelmaking process. The patent-pending process, one of a number of avenues the company is pursuing to try to lower emissions in the steel value chain, is now being further tested in a small-scale pilot plant.

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5 Top ASX Robotics Stocks

Emerging Technology Investing
robotic arm above a globe showing Australia

Australia is hoping to lead the way in robotics, and these are some of the country's top robotics stocks by market cap.

Robotics is a growing area of engineering and science technology. Although Australia is hoping to lead the way in robotics, the number of pure-play ASX-listed robotics companies isn't all that big.

Robotics is a broad term covering everything from design to the construction and operation of robots. It also includes the use of robots in roles normally played by humans, often to reduce errors or speed up processes.

This list includes a wide range of ASX-listed companies that employ robotics. Data was sourced using TradingView's stock screener on November 24, 2021, and stocks are listed in order of market cap from largest to smallest.


1. WiseTech Global (ASX:WTC)

Market cap: AU$17.19 billion; current share price: AU$52.90

Technology powerhouse WiseTech Global provides software solutions to logistics businesses in 130 countries around the world. Its CargoWise platforms are designed using workflows, automation and robotics. The WiseTech Global Group includes more than 30 businesses.

The company has performed positively on the ASX over the past year, with its share price rising about 70 percent since the start of 2021. The company expects to continue this momentum in during its 2022 fiscal year, with projected EBITDA growth of 26 to 38 percent.

2. Altium (ASX:ALU)

Market cap: AU$5.47 billion; current share price: AU$41.67

Altium is a leading global software company that focuses on 3D-printed circuit board (PCB) design. Although seemingly obscure, the PCB design tool Altium Designer is used by robotics companies like Robotics Kanti. The company also sponsors student robotics design competitions that focus on PCB design.

The 2021 fiscal year was strong for Altium, which reported a revenue increase of 6 percent, to AU$180.2 million, and announced a final dividend of AU$0.21 per share.

3. Vection Technologies (ASX:VR1)

Market cap: AU$249.49 million; current share price: AU$0.25

Vection Technologies is a multinational software company with offices in Western Australia, as well as Subiaco and Casalecchio di Reno in Italy. The company uses robotics technology in addition to 3D, virtual reality, augmented reality, industrial internet of things and CAD solutions.

The business is split into two sections: information technology development and outsourced services. The company also collaborates with Autodesk Technology Centres, the Microsoft Mixed Reality Team and Cisco Systems Italy.

4. FBR (ASX:FBR)

Market cap: AU$116.95 million; current share price: AU$0.05

FBR designs, develops and builds robots for the global construction market. The company's dynamically stabilised offerings are made to work outdoors using FBR's Dynamic Stabilisation Technology.

This technology was first used in the Hadrian X, a brick-laying robot that can build structural walls more efficiently than traditional methods and with less waste. The first commercial building to have its structural walls built by Hadrian X in 2020 was completed and tenanted in 2021.

5. Bill Identity (ASX:BID)

Market cap: AU$44.18 million; current share price: AU$0.25

Previously known as BidEnergy, Bill Identity provides a series of bill management solutions leveraged using its Robotic Process Automation (RPA). The RPA system helps clients increase their efficiency and serves customers across Australia, New Zealand, the UK, the US and Europe. The company had a strong year, with total operating revenue growth of 55 percent year-on-year to AU$14.6 million in its 2021 fiscal year.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article

Sydney Opera House at night

Robotics is an area of investing that is growing in Australia ― but is it a sector worth investing in?

The global robotics industry is expected to grow at a compound annual growth rate of 7.8 percent through 2028 according to the Global Industrial Robotics Market Analysis 2020. Robotics is an area of investing that is growing in Australia ― but is it a sector worth investing in?

Broadly speaking, robotics is the design and construction of robots. This can include core automation and production, industrial software, robot technology and integration of robotics. From drones to self-driving cars to toys ― robotics is a growing industry that is beginning to permeate our daily lives.


The distinction between robotics and AI can be a little confusing, but essentially think of robotics like the body and AI like the brain. Both can exist separately, and they are powerful when combined. The goal of a robot is to complete a task faster and more efficiently than a human.

What does the market look like?

The COVID-19 pandemic has seen technology sectors such as robotics accelerate as businesses have faced global challenges. Robotics has been able to help keep spaces safer by replacing humans with robots on factory lines, in eCommerce warehouses or on healthcare frontlines taking temperatures or disinfecting spaces.

What is Australia doing to support the robotics sector?

In early 2020, the Robotics Australia Network was formed to accelerate growth of the domestic robotics industry. The network aims to strengthen global competitiveness and cement Australia as a global leader in robotics.

How does the Australian robotics sector stack up?

According to the International Federation of Robotics, in a ranking of the world's most automated countries it's not even in the top 10. Number one is Singapore, followed by South Korea then Japan.

The investment space for pure robotics companies is relatively small, with greater opportunities to invest in more broader technology, AI and automation stocks.

Who are the big players in robotics stocks?

Robotics stocks in Australia are companies with a strong crossover to other technology sectors like artificial intelligence and virtual reality.

Vection Technologies (ASX:VR1)
Market Cap AU$77.56 million

Vection is a multinational software company with offices in Western Australia as well as Subiaco and Casalecchio di Reno in Italy. The company uses robotics technology as well as 3D, virtual reality, augmented reality, industrial IoT and CAD solutions. The business is split into two sections: IT development and outsourced services. The company also collaborates with Autodesk Technology Centers, the Microsoft Mixed Reality Team and Cisco Systems Italy.

Bill Identity (ASX:BID)

Market Cap AU$52.97 million

Previously known as BidEnergy, Bill Identity is a series of bill management solutions leveraged using robotic process automation, which helps clients increase efficiency. The company serves customers across Australia, New Zealand, the UK, the US and Europe. Bill Identity had a strong year, with total operating revenue growth of 55 percent year-on-year to US$14.6M in FY21.

What are the other ways to invest in robotics?

Another way to get into the robotics sector is investing in robotics exchange traded funds (ETFs), a popular choice that offers exposure to the industry of robotics and artificial intelligence rather than a single company. Two major ETFs in the robotics sector are:

  • BetaShares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ)
  • The ROBO Global Robotics and Automation ETF (ARCA:ROBO)

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.