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In 2008-09, the index of export prices for Australian mineral resources (export unit returns) increased by 35 per cent compared with the previous year. Export unit returns for energy minerals 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 partly offset by lower export prices for most other commodities.
In the June quarter of 2009, the index of export prices declined by 23 per cent compared with the previous quarter, as prices for energy minerals decreased by 33 per cent and prices for metals and other minerals decreased by 19 per cent. Export prices for energy minerals declined as lower export prices for metallurgical (43 per cent) and thermal coal (31 per cent) offset higher export prices for crude oil (8 per cent). Export prices for metals and other minerals also declined as lower export prices for iron ore (31 per cent) more than offset higher export prices for some base metals such as copper and nickel.
Total earnings from Australia’s mineral resource exports increased by 37 per cent to $159.7 billion
in 2008-09. Increased export earnings primarily reflected higher contract prices for bulk commodities in the first nine months of 2009 and the effect of a 16 per cent depreciation of the Australian dollar.
In 2008-09, there were significant increases in export earnings 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. Except for metallurgical coal, which recorded lower export volumes, increased export earnings reflected increased volumes shipped and higher export prices.
Commodities recording significant declines in export earnings in 2008-09 include: nickel, down $3.0 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.
Lower export values for lead, oil and copper reflected lower export unit values more than offsetting moderate increases in export volumes. Export values for nickel, zinc, petroleum refinery products and LPG declined as a result of both lower export volumes and export prices.
Australian production of energy and minerals was lower in 2008-09 with the index of mine production falling by 1 per cent. Production of energy commodities was flat with metals and other minerals accounting for most of this decline.
Significant production declines occurred for intermediate nickel (53 per cent); iron and steel (31 per cent); manganese (31 per cent); refined nickel (8 per cent); zircon (8 per cent); and zinc ores and concentrates (8 per cent).
Intermediate nickel production declined in 2008-09, reflecting the closure of significant mine capacity. Mines closed in the financial year included: BHP Billiton’s Ravensthorpe; Norilsk’s Waterloo, Lake Johnson, Black Swan and Cawse; Australian Mines’ Blair; Palmary’s Kambalda; and Fox Resources’ Radio Hill. Refined nickel production was lower as maintenance at BHP Billiton’s Kalgoorlie smelter in the second half of 2008 led to lower production at their Kwinana refinery. Manganese production was lower primarily reflecting reduced production at BHP Billiton’s Northern Territory operations. Iron and steel production declined, reflecting lower production at BlueScope Steel’s Port Kembla Steelworks and OneSteel’s Whyalla operations. Lower production of zircon concentrates reflected significant production cuts at Iluka’s mineral sands operations. Zinc mine production was lower in the financial year as a number of mines were closed as a result of falling zinc prices in the second half of 2008. Mines which closed in the financial year include Teck Resources’ Lennard Shelf, Intec’s Hellyer and Xstrata’s Handlebar Hill mine.
Increased production was observed for tin (138 per cent); refined silver (24 per cent); refined copper (12 per cent); iron ore (9 per cent); crude oil (9 per cent); and refined gold (6 per cent).
Tin production increased in 2008-09, reflecting the start-up of Metals X’s Renison operation in the September quarter. Refined silver production was higher as a result of increased production at the Port Pirie refinery in South Australia. Production of refined copper increased reflecting higher production at Xstrata’s Townsville refinery and BHP Billiton’s Olympic Dam. Production of iron ore increased, being underpinned by increased output from Australia’s largest producers, Rio Tinto, BHP Billiton and Fortescue Metals Group. Australia’s crude oil production was higher in 2008-09 reflecting the start up of the Angel and Vincent fields and the continued ramp up of capacity at the Stybarrow field. Production of refined gold increased primarily because of an increased availability of overseas scrap for refining in Australia.
In 2008-09, Australia’s crude oil and condensate production totalled 27.8 gigalitres, which was an increase of 9 per cent from 2007-08. The increased production reflects the start up of the North West Shelf Joint Venture’s Angel oil and gas field and Woodside’s Vincent project, as well as increased production from Woodside’s Lamarina-Corallina operation following improved field performance. In line with higher production, export volumes of crude oil and other refinery feedstock increased by 4 per cent to 16.7 gigalitres. Export earnings for the year decreased by 16 per cent to $8.8 billion, as a decline in oil prices more than offset higher export volumes.
Natural gas production increased in 2008-09 by 2 per cent to 40.1 billion cubic metres. This increased production largely reflects the start up of the Angel gas field, which will support expanded LNG production at the North West Shelf project. LNG production from the fifth train at the North West Shelf contributed to a 13 per cent increase in exports in 2008-09. Export earnings from LNG increased by 72 per cent to $10.1 billion, underpinned by increased export volumes as well as a higher average unit value compared with 2007-08.
Australian production of both raw and saleable black coal declined in 2008-09. Estimated lower production of metallurgical coal in Queensland accounted for most of this decline, with production in New South Wales estimated to have remained steady. Export earnings for black coal increased by 124 per cent to $54.6 billion. The large increase in export value reflects higher contract prices for both metallurgical and thermal coal in the first nine months of the financial year.
Australia’s uranium production (U3O8) increased by 197 tonnes (2 per cent) in 2008-09, as higher production at Energy Resources of Australia’s Ranger mine was partially offset by lower production at BHP Billiton’s Olympic Dam and Heathgate Resource’s Beverley operations. Despite steady export volumes, the value of Australia’s uranium exports increased by 12 per cent to $990 million reflecting a depreciation of the Australian dollar and higher export prices for uranium sold from Ranger.
Iron ore production increased by 9 per cent to 353.8 million tonnes in 2008-09, reflecting increased production at BHP Billiton’s and Rio Tinto’s Pilbara operations and a full year of production at Fortescue Minerals Cloud Break operation. In line with higher production and export prices, the value of Australia’s iron ore exports increased by 67 per cent to $34.2 billion.
Australia’s gold mine production fell by 11 tonnes (5 per cent) to 218 tonnes in 2008-09, the lowest since 1989. This fall reflects lower production from large established mines and the closure of several older mines. Export earnings from gold increased by 48 per cent to $16.1 billion in 2008-09, supported by a 15 per cent increase in export volumes and a 29 per cent increase in the Australian dollar denominated gold price.
Copper mine production increased by 26 000 tonnes (3 per cent) to 889 000 tonnes as increased production at BHP Billiton’s Olympic Dam and the commissioning of OZ Minerals’ Prominent Hill project offset mine closures in the second half of 2008. Refined copper production increased by 55 000 tonnes (12 per cent) to 499 000 tonnes as higher production at Xstrata’s Townsville refinery and BHP Billiton’s Olympic Dam offset closures to SX-EW capacity. Despite exports of mine and refined copper increasing, the value of copper exports declined by 14 per cent to $5.8 billion in 2008-09, which reflects a sharp fall in average export prices.
Australian nickel mine production declined by 3 per cent in 2008-09 to 185 000 tonnes. This reflects the closure of some mines as a result of the lower nickel prices. The production decline was moderated by increased production from Xstrata’s nickel operations in the first half of 2009. Refined nickel production declined by 8 per cent in 2008-09 to 110 000 tonnes, largely attributable to the shutdown at BHP Billiton’s Kalgoorlie smelter in Western Australia. Nickel export volumes declined in 2008-09 by 8 per cent to 194 000 tonnes. Significantly lower world prices and export volumes more than offset the effects of a depreciation of the Australian dollar resulting in the value of nickel exports declining by 53 per cent to $2.7 billion.
Zinc mine production decreased by around 160 000 tonnes (10 per cent) to 1.4 million tonnes in 2008-09 reflecting mine closures and production cuts in late 2008 and early 2009. Closures included Teck Resources’ Lennard Shelf, Intec’s Hellyer and Xstrata’s Handlebar Hill mine. Refined zinc production was largely unchanged, reflecting that there were no new additions to capacity during the year. Export earnings from zinc were 45 per cent lower at $1.9 billion in 2008–09 as a result of both lower zinc prices and export volumes.
Fiscal year export summary |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
export volume |
export value |
|||||||||
 |
|
|||||||||
2007-08 |
2008-09 |
change |
2007-08 |
2008-09 |
change |
|||||
% |
% |
|||||||||
| Bauxite | kt |
7 917 |
7 470 |
–6 |
||||||
| Alumina | kt |
15 739 |
16 395 |
4 |
Bauxite s | $m |
206 |
192 |
–7 |
|
| Aluminium (ingot metal) |
kt |
1 650 |
1 749 |
6 |
Alumina a | $m |
5 809 |
6015 |
4 |
|
| Coal, black | Aluminium (ingot metal) |
$m |
4 967 |
4726 |
–5 |
|||||
| Coking | Mt |
137 |
125 |
–9 |
Coal, black | |||||
| Steaming | Mt |
115 |
136 |
18 |
Coking | $m |
16 038 |
36690 |
129 |
|
| Copper | kt |
732 |
816 |
11 |
Steaming | $m |
8 365 |
17901 |
114 |
|
| Diamonds | ‘000 ct |
16 528 |
16 279 |
–2 |
Copper f | $m |
6 730 |
5766 |
–14 |
|
| Gold | t |
382 |
437 |
14 |
Diamonds cs | $m |
625 |
676 |
8 |
|
| Iron | Gems, other than diamonds | $m |
52 |
43 |
–17 |
|||||
| Iron ore and pellets | kt |
294 293 |
323 338 |
10 |
Gold, refined | $m |
10 903 |
16146 |
48 |
|
| Iron and steel | kt |
2 131 |
1 741 |
–18 |
Iron | |||||
| Lead | kt |
588 |
645 |
10 |
Iron ore and pellets | $m |
20 511 |
34249 |
67 |
|
| Iron and steel | $m |
1 562 |
1363 |
–13 |
||||||
| Manganese ore and concentrate s | kt |
5 105 |
3 226 |
–37 |
Lead f | $m |
2 027 |
1603 |
–21 |
|
| Nickel | kt |
210 |
194 |
–8 |
Magnesia | $m |
72 |
82 |
14 |
|
| Petroleum | Manganese ore | |||||||||
| Crude oil and other | and concentrate s | $m |
1 532 |
1406 |
–8 |
|||||
| refinery feedstock | ML |
15 975 |
16 665 |
4 |
Nickel fs | $m |
5 716 |
2705 |
–53 |
|
| LNG | Mt |
14 |
16 |
13 |
Petroleum | |||||
| LPG | ML |
2 589 |
2 427 |
–6 |
Crude oil and other | |||||
| Refinery products | ML |
1 807 |
1 136 |
–37 |
refinery feedstock | $m |
10 484 |
8758 |
–16 |
|
| Salt | kt |
10 686 |
10 978 |
3 |
LNG | $m |
5 854 |
10086 |
72 |
|
| Tin | t |
3 079 |
4 159 |
35 |
LPG | $m |
1 182 |
1021 |
–14 |
|
| Titanium | Refinery products | $m |
1 323 |
782 |
–41 |
|||||
| Ilmenite concentrate | kt |
894 |
1 538 |
72 |
Salt | $m |
232 |
237 |
2 |
|
| Leucoxene concentrate | kt |
56 |
20 |
–64 |
Silver, refined | $m |
187 |
245 |
31 |
|
| Rutile concentrate | kt |
399 |
550 |
38 |
Tin f | $m |
42 |
70 |
67 |
|
| Synthetic rutile s | kt |
513 |
512 |
0 |
Titanium | |||||
| Titanium dioxide pigment | kt |
175 |
141 |
–19 |
Ilmenite concentrate d |
$m |
104 |
171 |
64 |
|
| Leucoxene concentrate |
$m |
15 |
12 |
–20 |
||||||
| Uranium oxide (U3O8) | t |
10 139 |
10 114 |
0 |
Rutile concentrate | $m |
277 |
335 |
21 |
|
| Zinc | kt |
1 507 |
1 470 |
–2 |
Synthetic rutile s | $m |
305 |
258 |
–15 |
|
| Zircon concentrate | kt |
637 |
685 |
8 |
Titanium dioxide pigment | $m |
375 |
396 |
6 |
|
| Uranium oxide (U3O8) | $m |
887 |
990 |
12 |
||||||
| Zinc f | $m |
3 350 |
1853 |
–45 |
||||||
| Zircon concentrate e | $m |
421 |
540 |
28 |
||||||
| Other mineral resources g | $m |
6 147 |
4505 |
–27 |
||||||
| Total mineral resources h | $m |
116 238 |
159746 |
37 |
||||||
| Total merchandise | $m |
182 818 |
231728 |
|||||||
| Total goods and services | $m |
233 853 |
285701 |
22 |
||||||
| a Includes aluminium hydroxide. b Metallic content of all ores, concentrates, intermediate products (where applicable) and refined metal. c Unsorted and sorted. d Includes metal content of ores and concentrates, intermediate products and nickel metal. e Value of all ores, concentrates, intermediate products (where applicable) and refined metal. f Derived as the difference between total mineral resources exports, below, and the sum of the above items. g Total mineral resource exports on an ABARE balance of payments basis. p Preliminary. s ABARE estimate. Sources: Australian Bureau of Statistics, Canberra; ABARE. |
||||||||||
Fiscal year production summary |
||||
|---|---|---|---|---|
2007-08 |
2008-09 |
% change |
||
| Bauxite | kt |
63 463 |
64 418 |
2 |
| Alumina | kt |
19 359 |
19 597 |
1 |
| Aluminium (ingot metal) | kt |
1 964 |
1 974 |
1 |
| Coal | ||||
| Black, raw | Mt |
421 |
414 |
–2 |
| Black, salable | Mt |
327 |
318 |
–3 |
| Brown as | Mt |
72 |
73 |
1 |
| Copper | ||||
| Mine bs | kt |
863 |
889 |
3 |
| Blister c | kt |
395 |
459 |
16 |
| Refined | kt |
444 |
499 |
12 |
| Diamonds | ‘000 ct |
16 528 |
15 430 |
–7 |
| Gold | ||||
| Mine bs | t |
229 |
218 |
–5 |
| Refined | t |
364 |
386 |
6 |
| Iron | ||||
| Iron ore and concentrate | kt |
324 693 |
353 800 |
9 |
| Iron | kt |
6 488 |
4 410 |
–32 |
| Raw steel | kt |
8 121 |
5 587 |
–31 |
| Lead | ||||
| Mine bs | kt |
641 |
596 |
–7 |
| Bullion c | kt |
152 |
155 |
2 |
| Refined | kt |
203 |
213 |
5 |
| Manganese | kt |
5 436 |
3 749 |
–31 |
| Nickel | ||||
| Mine bs | kt |
190 |
185 |
–3 |
| Intermediate | kt |
45 |
21 |
–53 |
| Refined, class 1 | kt |
105 |
95 |
–10 |
| Refined, class 2 | kt |
15 |
15 |
0 |
| Petroleum, field | ||||
| Crude oil and condensate | ML |
25 789 |
27 789 |
8 |
| LPG (naturally occurring) | ML |
3 971 |
3 929 |
–1 |
| Natural gas | Mm3 |
39 283 |
40 109 |
2 |
| Petroleum, refinery | ||||
| LPG | ML |
1 515 |
1 477 |
–3 |
| Automotive gasoline | ML |
17 079 |
17 159 |
0 |
| Aviation turbine fuel | ML |
5182 |
5 494 |
6 |
| Automotive diesel oil | ML |
12 177 |
12 231 |
0 |
| Other | ML |
3 622 |
3 184 |
–12 |
| Total | ML |
39 575 |
39 546 |
0 |
| Salt | kt |
11 243 |
11 202 |
0 |
| Silver | ||||
| Mine bs | t |
1 867 |
1 785 |
–4 |
| Refined | t |
605 |
751 |
24 |
| Tin | ||||
| Mine bs | t |
1 631 |
3 879 |
138 |
| Refined | t |
0 |
0 |
na |
| Titanium | ||||
| Ilmenite concentrate | kt |
2 205 |
1 950 |
–12 |
| Leucoxene concentrate | kt |
156 |
164 |
5 |
| Rutile concentrate | kt |
333 |
318 |
–5 |
| Synthetic rutile s | kt |
672 |
716 |
7 |
| Titanium dioxide pigment | kt |
201 |
221 |
10 |
| Uranium oxide (U3O8) | t |
10 114 |
10 311 |
2 |
| Zinc | ||||
| Mine bs | kt |
1 571 |
1 411 |
–10 |
| Refined | kt |
507 |
506 |
0 |
| Zircon concentrate | kt |
580 |
534 |
–8 |
| a Total metallic content of minerals produced. b Metallic content. p Preliminary. s ABARE estimate. na Not available. Sources: Australian Bureau of Statistics, Canberra; Coal Services Pty Limited; Queensland Government, Department of Natural Resources and Mines; ABARE. |
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