Export earnings for coal and iron ore were lower during the September quarter, reflecting the full effect of lower contract prices and the appreciation of the Australian dollar. However, export volumes of coal and iron ore reached record levels.

“Strong demand for coal and iron ore from Japan, the Republic of Korea and China underpinned record export volumes in the September quarter,” said Dr Terry Sheales, ABARE Deputy Executive Director, on releasing the report.

The index of export prices of Australian energy and mineral resources declined by 11 per cent in the September quarter. The energy export price index declined by 14 per cent, while prices for metals and other minerals remained steady.

Commodities recording significant increases in export earnings in the September quarter include: liquefied petroleum gas (LPG), up $94 million (47 per cent) to $292 million; nickel, up $199 million (31 per cent) to $833 million; crude oil and condensate, up $388 million (23 per cent) to $2.1 billion and liquefied natural gas (LNG), up $133 million (8 per cent) to $1.7 billion. 

However, this was offset by commodities which recorded declines in export earnings in the September quarter including: diamonds, down $17 million (22 per cent) to $59 million; gold, down $414 million (13 per cent) to $2.7 billion; metallurgical coal, down $684 million (11 per cent) to $5.5 billion and thermal coal, down $296 million (9 per cent) to $3.2 billion.

Production of around two-thirds of Australia’s major mineral and energy commodities was higher in the quarter. Significant increases in production were observed for diamonds, iron and steel, refined gold, iron ore, mined nickel and coal.