Resource Exports Soar Towards New Australian Record
SYDNEY — Australia’s resources and energy exports are expected to hit AU$334 billion ($253.62 billion) in the next financial year, a new study shows.
The federal industry department’s Resources and Energy Quarterly report released on June 28 said commodity prices had gained momentum in the first half of 2021.
Iron ore, liquefied natural gas, thermal coal, and base metals have reached multi-year highs.
In 2020/21, Australia’s resources and energy exports are estimated to reach AU$310 billion ($235.40 billion), up more than six percent on the record set in 2019/20.
This figure is forecast to rise to AU$334 billion ($253.62 billion) in 2021/22.
Iron ore export earnings are estimated to rise by 45 percent to AU$149 billion ($113.14 billion) in 2020/21, accounting for almost half of Australia’s resources and energy exports.
Australian metallurgical coal miners are benefiting from a surge in world steel production.
Informal import restrictions by China have seen thermal coal miners pivot to other customers hit by the very cold Northern Hemisphere winter.
Thermal coal exports fell from 213 million tonnes in 2019/20 to a forecast of 194 million tonnes in 2020/21, but are expected to recover to 212 million tonnes by 2022/23 as Asian economies recover.
Thermal coal export values are forecast to be AU$17 billion ($12.91 billion) in 2021/22, down from AU$20 billion ($15.19 billion) in 2019/20.
Liquefied Natural Gas export earnings are forecast to increase from an estimated AU$33 billion ($25.06 billion) in 2020/21 to AU$49 billion ($37.21 billion) in 2021/22.
However, an easing of global economic growth and softer prices are expected to result in total resources export earnings dropping to AU$304 billion ($230.84 billion) in 2022/23.
“Australia’s energy and resources sector has remained safe and reliable suppliers to domestic and global markets throughout the pandemic, helping to underpin economic growth and overcome the challenging trade conditions of the past year,” Resources Minister Keith Pitt said.
Keith John Pitt is an Australian politician who has been the Minister for Resources, Water and Northern Australia in the Morrison Government since February 2020. He is a member of the National Party and has represented the Division of Hinkler in Queensland since the 2013 federal election.
The Division of Hinkler is an Australian Electoral Division in Queensland. The National Party of Australia, also known as The Nationals or The Nats, is an Australian political party. Traditionally representing graziers, farmers, and rural voters generally, it began as the Australian Country Party in 1920 at a federal level.
(Edited by Vaibhav Pawar and Ritaban Misra)