This follows on from a sharp 14.0% decline in revenue in 2014-15.

As commodity prices have fallen, many mining firms have ceased expansion and exploration projects, and instead shifted their focus to production, according to IBISWorld senior industry analyst Spencer Little.

“This has been to the detriment of contract miners in the industry, as many services that were previously contracted out have been brought back in house,” he said.

Demand for industry services is typically driven by the relative cost savings and output advantages that mining companies derive from outsourcing these processes, compared with keeping production in-house. Industry revenue has fluctuated significantly over the past five years due to shifting operating conditions in the mining division.

Contract miners generally have access to a large pool of mining machinery and equipment, and skilled employees to meet client needs.

“The industry is highly dependent on trends in mining activity, particularly black coal and iron ore mining activity, as these are Australia’s largest resources in terms of both volume and value,” Little said.