Australia’s resources and energy commodity export earnings are set to hit a record $206 billion in 2011 - 2012. This figure comes from the Bureau of Resources and Energy Economics’ (BREE) report - Resources and Energy Quarterly - December quarter 2011.
As BREE’s Executive Director and Chief Economist Professor Quentin Grafton commented, “The 15 % increase in Australia’s minerals and energy export earnings will be underpinned by strong growth in export volumes for iron ore and coal and high gold prices.”
This expected 15 % increase comes down to increased earnings in the areas of iron ore, coal, oil, gas and gold minining.
The growth in earnings in 2011 - 2012 is expected to be underpinned by the following increases in export values for:
- Gold mining, which should increase to $19 billion (up 45 %)
- Thermal coal, which should increase to $19 billion (up 34 %)
- Iron ore, which should increase to $60 billion (up 11 %)
- Metallurgical coal, which should increase to $34 billion (up 13 %)
- Crude oil and condensate, which should increase to $14 billion (up 21 %)
- Liquefied natural gas, which should increase to $12 billion (up 15 %)
Over the past quarter, risks to the outlook for Australia’s mining and energy exports have risen. This explains why the forecast value of exports was revised down by 4 %, when compared to the previous forecast in the Resources and Energy Quarterly - September quarter 2011.
Professor Grafton says, “Despite the uncertainty surrounding the outlook for some European economies, Australia’s export volumes for most commodities have remained strong in the second half of 2011, while prices for many commodities have remained at historically high levels.”