“The record earnings reflect a 16 per cent depreciation of the Australian dollar and higher contract prices for bulk commodities in the first nine months of the financial year,” noted Dr Sheales.

The index of export prices of Australian mineral resources increased by 35 per cent in 2008-09. The energy export price index increased by 68 per cent, which mainly reflects higher contract prices for thermal coal and metallurgical coal in the first nine months of the financial year. The index of metals and other minerals prices increased by 12 per cent, as higher export prices for iron ore were offset by lower export prices for most other commodities.

There were significant increases in export earnings in 2008-09 for: metallurgical coal, up $20.7 billion (129 per cent) to $36.7 billion; thermal coal, up $9.5 billion (114 per cent) to $17.9 billion; liquefied natural gas (LNG), up $4.2 billion (72 per cent) to $10.1 billion; iron ore, up $13.7 billion (67 per cent) to $34.2 billion; and gold, up $5.2 billion (48 per cent) to $16.1 billion.

Commodities recording significant declines in export earnings in 2008-09 included: nickel, down $3 billion (53 per cent) to $2.7 billion; zinc, down $1.5 billion (45 per cent) to $1.9 billion; petroleum refinery products, down $541 million (41 per cent) to $782 million; lead, down $424 million (21 per cent) to $1.6 billion; crude oil, down $1.7 billion (16 per cent) to $8.8 billion; copper, down $964 million (14 per cent) to $5.8 billion; and liquefied petroleum gas (LPG), down $161 million (14 per cent) to $1 billion.

Australian production of energy and mineral commodities declined in 2008-09, with the index of mine production falling by 1 per cent.

“In particular, production of nickel, iron and steel, zinc, gold and black coal declined in 2008-09,” said Dr Sheales.