“The record earnings reflect increased export volumes for most commodities and significantly higher prices for crude oil, LNG, thermal coal, iron ore, copper and gold,” noted Mr Glyde.

The index of export prices of Australian mineral resources increased by 25 per cent in 2007-08. The energy export price index increased 54 per cent, reflecting higher oil prices and increased thermal and metallurgical coal contract prices which took effect from April 2008.

Metals and related minerals prices also increased by 8 per cent largely attributable to higher contract prices for iron ore and higher world prices for gold, silver, lead and copper.

Commodities that recorded large increases in export earnings included: iron ore, up $4.8 billion (31 per cent) to $20 billion; crude oil and condensate, up $2.2 billion (26 per cent) to $10.5 billion; thermal coal, up $1.6 billion (23 per cent) to $8.3 billion; manganese ore, up $1 billion (218 per cent) to $1.5 billion; liquefied natural gas (LNG), up $632 million (12 per cent) to $5.9 billion; refined gold, up $582 million (6 per cent) to $10.9 billion; and metallurgical coal, up $755 million (5 per cent) to $15.8 billion.

Major commodities that recorded declines in export earnings in 2007-08 were: nickel, down $2.1 billion (33 per cent) to $4.2 billion; zinc, down $932 million (22 per cent) to $3.4 billion; aluminium, down $679 million (12 per cent) to $5 billion; and alumina, down $432 million (7 per cent) to $5.8 billion.    

Australian production of energy and minerals was steady in 2007-08, with a small rise in metallic minerals compensating for a decline in the production of energy commodities.

“In particular, production of iron ore, silver and zinc increased while crude oil declined in 2007-08,” Mr Glyde concluded.