Analyzing the efficiency performance of major Australian mining companies using bootstrap data envelopment analysis

Ahmad Hosseinzadeh, Russell Leigh Smyth, Abbas Valadkhani, Viet Le

Research output: Contribution to journalArticleResearchpeer-review

20 Citations (Scopus)

Abstract

We identify the balance of efficiency gains and losses for 33 Australian mining firms over the period 2008–2014 using bootstrap data envelopment analysis (DEA). We ascertain which companies climbed the efficiency ladder and which companies slipped back in efficiency over time. We find that mining companies involved in metal processing or mining services have been more efficient than those involved in exploration and extraction activities. Assuming variable returns to scale (VRS), on average, we find that mining firms could improve their performance between a minimum of 17% in 2010 and a maximum of 34% in 2008, relative to the best practice performers. We find that, overall, most mining companies became more efficient over time, with the top performers generally maintaining a ranking in the top third of companies in terms of efficiency throughout the period.
Original languageEnglish
Pages (from-to)26 - 35
Number of pages10
JournalEconomic Modelling
Volume57
DOIs
Publication statusPublished - 2016

Keywords

  • Australia
  • mining companies
  • efficiency
  • Data envelopment analysis
  • bootstrap

Cite this

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abstract = "We identify the balance of efficiency gains and losses for 33 Australian mining firms over the period 2008–2014 using bootstrap data envelopment analysis (DEA). We ascertain which companies climbed the efficiency ladder and which companies slipped back in efficiency over time. We find that mining companies involved in metal processing or mining services have been more efficient than those involved in exploration and extraction activities. Assuming variable returns to scale (VRS), on average, we find that mining firms could improve their performance between a minimum of 17{\%} in 2010 and a maximum of 34{\%} in 2008, relative to the best practice performers. We find that, overall, most mining companies became more efficient over time, with the top performers generally maintaining a ranking in the top third of companies in terms of efficiency throughout the period.",
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Analyzing the efficiency performance of major Australian mining companies using bootstrap data envelopment analysis. / Hosseinzadeh, Ahmad; Smyth, Russell Leigh; Valadkhani, Abbas; Le, Viet.

In: Economic Modelling, Vol. 57, 2016, p. 26 - 35.

Research output: Contribution to journalArticleResearchpeer-review

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AU - Le, Viet

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AB - We identify the balance of efficiency gains and losses for 33 Australian mining firms over the period 2008–2014 using bootstrap data envelopment analysis (DEA). We ascertain which companies climbed the efficiency ladder and which companies slipped back in efficiency over time. We find that mining companies involved in metal processing or mining services have been more efficient than those involved in exploration and extraction activities. Assuming variable returns to scale (VRS), on average, we find that mining firms could improve their performance between a minimum of 17% in 2010 and a maximum of 34% in 2008, relative to the best practice performers. We find that, overall, most mining companies became more efficient over time, with the top performers generally maintaining a ranking in the top third of companies in terms of efficiency throughout the period.

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KW - mining companies

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