The report, Mining Business Outlook 2011-12 by operational management consultancy Newport Consulting, draws on a series of interviews with 45 mining executives from junior through to major mining companies.

According to the report's findings, 57% of those interviewed are very optimistic about their future growth in the year ahead while 52% are seeking to ramp up spending and investment in the sector.

"From our discussions this year with mining leaders, it appears the industry is bracing itself for a busy growth period over the next 12 months, with a number of executives citing increased spending on the expansion of mines as well as development of new mine projects," the report said.

"Companies have growing project pipelines and a number of environmental and other development plan approvals that they are waiting on in order to further expand and capitalise on the next mining boom."

The interview responses are a significant turnaround from last year when only 38% were very optimistic and only 35% planned to increase capital expenditure.

Meanwhile, 31% of interviewed executives said they would moderately increase spending and investment while 17% planned to cut their spending this financial year, compared with 57% last year.

"Those companies who are not increasing spending or investment are instead focusing on improved business efficiency and profitability," the report said.

According to the report, 57% of those interviewed said increased sales were driving their optimistic outlook, while 21% said it was due to increased prices and 11% said it was increased demand.

Despite the positive outlook, the report revealed staff retention and recruitment had emerged as the critical challenge facing the industry, with the increased investment in production and exploration exacerbating the skills shortage.