It is aid that in Australia one mining tire cost more than a Mercedes. In 2011 the cost jumped to 93,500 on the spot market. The increase is due to the demand by the other countries for Australian goods like iron and coal. This is forcing companies to compete against each other for equipment that is needed to do the jobs. According to Managing Director or Tire Innovators Paul Roesler, the industry is concerned the cost of tires will become almost unaffordable again. This happened before in 2007 and it was a while before the industry was able to recover. Another reason for the price increase is due to the rise is cost for raw materials. Rubber prices have raised six fold making the cost about two dollars a pound. The rise of gas and raw crude prices has also had an impact on the cost of tires; this is because companies use these products in large amounts to make the black carbon needed for tire carcasses and threads. These tires are made to last 4,000-7,000 hours but with the short supply and high cost many companies are pushing them to last longer. They are using a forum of tarp to put over the hot sand to help prevent the heat form wearing out the tires sooner. By doing this and pushing the tires and equipment they are putting many lives in danger.
One tire uses about 2,000 pounds of rubber with rubber costing about two dollars a pound that makes just one tire worth 4,460 just in rubber there is another 800 pounds of steal that cost one dollar a pound. So with just those to materials 5,260 dollars is needed to make the tire that does not include the oil and other products that are needed, this is the cost for just one tire. If we bring in our tires at a lower price and sell them to the companies it would be a win, win situation for both parties.
Australia uses the Australian dollar which comes in denominations of five, ten, twenty, fifty, and one hundred. Right