abare.gov.au - Australian mineral statistics

Main features

Overview

2007-08 highlights

The index of Australian mineral export prices increased by 25 per cent in 2007-08, with the growth underpinned by a 54 per cent increase in the index of energy export prices.

In 2007-08, earnings from Australia’s mineral resource exports increased by 11 per cent to $116 billion.

Export volumes were higher for most major commodities including iron ore, thermal and metallurgical coal, zinc, copper and aluminium.

Australian production of energy and minerals was steady in 2007-08, with higher production of metallic metals broadly offsetting lower production of energy minerals.

Prices

In 2007-08, the index of export prices of Australian mineral resources (export unit returns) increased by 25 per cent compared with 2006-07. Record price increases for energy minerals during the year, such as oil (53 per cent), thermal coal (19 per cent) and liquefied natural gas (LNG) (16 per cent), underpinned this rise, with the index of energy export prices increasing by 54 per cent. Prices for metals and other minerals also increased by nearly 8 per cent as higher world prices for gold, silver, lead and copper offset price declines for zinc, nickel and aluminium.

A significant proportion of the growth in the index of export prices occurred in the June quarter with total mineral export prices increasing by 21 per cent compared with 4 per cent in the previous quarter. The growth in the June quarter reflects the increase in contract prices of metallurgical and thermal coal, and iron ore, which took effect from April, as well as higher crude oil and gold prices.

Exports

Total earnings from Australia’s mineral resource exports increased by 11 per cent to $116 billion in 2007-08. This result reflects the combination of higher prices for energy and some mineral commodities and growth in export volumes for most commodities. These factors more than offset the effect of a 14 per cent appreciation of the Australian dollar.

In 2007-08, there were significant increases in export earnings for: 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 $1.1 billion (218 per cent) to $1.5 billion; metallurgical coal, up $755 million (5 per cent) to $15.8 billion LNG, up $632 million (12 per cent) to $5.9 billion; refined gold, up $582 million (6 per cent) to $10.9 billion and uranium, up $227 million (34 per cent) to $887 million. Apart from gold, LNG and lead, which recorded declining export volumes, higher export values for the other commodities reflect both increased volumes shipped and higher export prices.

Commodities which recorded a decline in export earnings in 2007-08 include: 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.

The decline in the export values for zinc, aluminium and alumina reflect lower prices more than offsetting higher export volumes, while the fall in the value of nickel earnings is the result of both lower export volumes and lower world prices.

Fiscal year export summary

export volume

unit

2006–07

2007–08

export value

unit

2006–07

2007–08

Bauxite

5 700

7 917

Bauxite

153

206

Alumina d

15 056

15 739

Alumina d

6 243

5 811

Aluminium (ingot metal)

1 638

1 650

Aluminium (ingot metal)

5 650

4 971

Coal, black

Coal, Black

Metallurgical

132

137

Metallurgical

15 039

15 794

Thermal

112

115

Thermal

6 758

8 336

Total

244

252

Total

21 797

24 129

Copper bs

699

732

Copper b

6 526

6 698

Diamonds es

‘000 ct

24 632

16 544

Diamonds cs

726

664

Gold bs

400

381

Gems, other than diamonds

Iron

Gold, refined

10 320

10 902

Iron ore and pellets

257 365

293 753

Iron

Iron and steel

2 648

2 134

Iron ore and pellets

15 512

20 273

Lead bs

635

567

Iron and steel

1 743

1 562

Manganese ore

Lead b

1 579

2 105

and concentrate

4 667

5 142

Manganese ore

Nickel bs

166

and concentrate

482

1 532

Petroleum

Nickel bs

6 372

4 239

Crude oil and other

Petroleum

refinery feedstock

15 965

15 971

Crude oil and other

LNG

refinery feedstock

8 317

10 489

LPG

2 824

2 588

LNG

5 222

5 854

Refinery products

1 762

1 811

LPG

1 038

1 181

Salt

10 749

10 686

Refinery products

1 098

1 296

Tin b

1 867

3 075

Salt

239

232

Titanium

Silver, refined

221

187

Ilmenite concentrate

999

894

Tin b

Leucoxene concentrate

123

Titanium

Rutile concentrate

307

399

Ilmenite concentrate

113

104

Synthetic rutile s

508

513

Leucoxene concentrate

Titanium dioxide pigment

171

175

Rutile concentrate

259

277

Uranium oxide (u₃o₈)

9 519

10 139

Synthetic rutile s

361

305

Zinc b

1 321

1 506

Titanium dioxide pigment

408

375

Zircon concentrate

555

637

Uranium oxide (u₃o₈)

660

887

Zinc b

4 298

3 366

Zircon concentrate

478

421

Other mineral resources f

4 657

7 739

Total mineral resources g

104 587

115 925

Total merchandise

169 535

184 148

Total goods and services

215 647

235 110

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.

Production

In June 2008, a fire at Apache Energy’s Varanus Island, off the coast of Western Australia, cut the state’s domestic gas supply by 30 per cent. Varanus Island is a major supplier of energy to Western Australia’s mining and processing industry. The incident left a number of mines and processing facilities with reduced gas supplies, forcing these operations to switch to higher priced diesel or alternative gas supplies. Most companies were able to source alternative energy supplies, meaning production was affected at only a small number of operations. Those affected included Minara Resources’ nickel project, Iluka’s mineral sands operations and Newcrest Mining’s Telfer operation. In mid-August, partial supply from Varanus Island had resumed with full supply scheduled to resume by the end of the year.
Australian production of energy and minerals was steady in 2007-08, with higher production of metallic metals broadly offsetting lower production of energy minerals.

Commodities for which production increased included: lead bullion (33 per cent), rutile concentrate (19 per cent), zinc ores and concentrates (14 per cent), iron ore (13 per cent) and silver ores and concentrates (12 per cent).

Lead bullion production increased in 2007-08 as recent expansions to the Mt Isa zinc-lead concentrator in Queensland and the mining of higher grade ores increased smelter output. Rutile concentrate production was also higher as a result of increased production at Consolidated Rutile and Iluka’s Queensland Douglas operation, offsetting lower production at Iluka’s Western Australian operations. Silver ores and concentrates production recovered in 2007-08, as annual production at BHP Billiton’s Cannington mine in Queensland returned to capacity following maintenance in 2006-07. Zinc production was higher as a result of one-off production at Perilya’s Beltana mine in South Australia and increased production at Century, Cannington and Mt Isa mines in Queensland. Iron ore production was also higher as BHP Billiton, Rio Tinto and Fortescue Minerals increased output from new mines in Western Australia.

Commodities which recorded a decline in production included: refined tin (100 per cent), diamonds (33 per cent), intermediate nickel (22 per cent), crude oil and condensate (10 per cent) and mined gold (9 per cent).

Production from Australia’s only refined tin project, Sons of Gwalia’s Greenbushes project in Western Australia, ceased in early 2007 when the company’s administrators closed the mine. This meant no refined tin was produced in Australia in 2007-08.

Diamond production was lower as a result of variability in mine production at Rio Tinto’s Argyle mine in Western Australia where the open pit operation is approaching the end of its life and the company continues its transition toward an underground operation. Production at Argyle was also affected by cyclone activity in the March quarter which increased water levels at the mine, restricting access to higher grade ores.

Intermediate nickel production was lower as a result of reduced output from the Kalgoorlie nickel refinery in Western Australia. Production of crude oil and LPG declined in 2007-08 because of technical difficulties at a number of oil fields and natural field decline. Gold production was also lower as a result of the closure of a number of gold operations with lower production also reflecting the mining of lower grade ores.

Fiscal year production summary

unit

2006-07

2007-08 p

change %

Bauxite

62 684

63 131

0.7

Alumina

18 506

19 359

4.6

Aluminium (ingot metal)

1 954

1 965

0.6

Coal

Black, salable

324

325

0.3

Copper

Mine bs

859

862

0.3

Blister c

389

393

Refined s

435

442

1.6

Diamonds

‘000 ct

24 632

16 544

–32.8

Gold

Mine bs

249

227

–8.8

Refined

360

364

1.1

Iron

Iron ore and concentrate s

287 653

324 705

12.9

Iron and steel s

8 010

8 121

1.4

Lead

Mine bs

642

641

–0.2

Bullion c

114

152

33.3

Refined

191

203

6.3

Manganese s

5 071

5 436

7.2

Nickel

Mine bs

191

190

–0.5

Intermediate

–21.1

Refined, class 1

104

105

Refined, class 2

Petroleum, field

Crude oil and condensate s

28 557

25 647

–10.2

LPG (naturally occurring)

4 550

3 971

–12.7

Natural gas

Mm³

39 331

39 281

–0.1

Petroleum, total refinery

38 795

39 575

Salt s

10 857

11 243

3.6

Silver

Mine bs

1 674

1 867

11.5

Refined

618

606

–1.9

Tin

Mine bs

3 367

1 631

–51.6

Refined s

321

–100.0

Titanium

Ilmenite concentrate s

2 383

2 205

–7.5

Leucoxene concentrate

169

156

–7.7

Rutile concentrate s

279

333

19.4

Synthetic rutile s

729

672

–7.8

Titanium dioxide pigment s

207

201

–2.9

Uranium oxide (U₃O₈)

9 594

10 151

5.8

Zinc

Mine bs

1 375

1 571

14.3

Refined

496

508

2.4

Zircon concentrate

557

580

4.1

a Quarterly data are not available. b Total metallic content of minerals produced. c Metallic content. p Preliminary. s ABARE estimate.
Sources: Australian Bureau of Statistics, Canberra; Coal Services Pty Limited; Queensland Government, Department of Natural Resources and Mines; ABARE.

Commodity highlights

Energy

Oil and gas

In 2007-08, Australia’s oil production totalled 25.6 gigalitres, 10 per cent less than the previous year. Naturally occurring LPG production declined by 13 per cent to 3971 million litres and natural gas remained steady at around 39 000 million cubic metres. This was despite the temporary shutdown of the Varanus Island plant in early June. The lower oil and LPG production reflects a combination of equipment failures at a number of fields, including Mutineer-Exeter and Lamarina-Corallina in Western Australia, as well as natural field decline. Cyclones also disrupted production at a number of fields off the north-western Australian coast at the end of 2007. Some of the production losses were partly offset by increased production from the Enfield, Cossack-Pioneer and Stybarrow fields located off the coast of Western Australia.

Export earnings from petroleum products increased by 20 per cent to $18.8 billion in 2007-08. With a high crude oil price being the main reason for higher export earnings.

Coal

Australian production of both raw and saleable black coal was steady in 2007-08. Estimated higher production in New South Wales was offset by lower production in Queensland during the March quarter as a result of heavy rainfall which forced a number of mines in the Bowen Basin to declare force majeure.

Export earnings from black coal increased by 11 per cent to more than $24 billion in 2007-08. The higher export value partially reflects increased contract prices for both thermal and metallurgical coal which took effect from April.

Uranium

Australia’s uranium production (U₃O₈) increased 557 tonnes (6 per cent) to 10 151 tonnes in 2007-08, as production increased at BHP Billiton’s Olympic Dam mine in South Australia and Energy Resources Australia’s Ranger mine in the Northern Territory. In line with higher export volumes and higher assumed contract prices, the value of Australian uranium exports increased by 34 per cent to $887 million.

Metals and other minerals

Iron ore

Iron ore production was higher for 2007-08 as BHP Billiton successfully completed its Rapid Growth 3 project and Rio Tinto increased production at recently commenced projects, Yandicoogina and Hope Downs both in Western Australia. In addition, the start-up of Fortescue Minerals Cloud Break operation, also in Western Australia, helped to further boost production. Export earnings from iron ore and pellets increased by 31 per cent to $20.3 billion, reflecting higher export volumes and prices.

Gold

Australia’s gold mine production fell by 22 tonnes (9 per cent) to 227 tonnes in 2007-08, the lowest since 1989. This fall reflects lower production from established mines, under performance of new projects and the closure of several older mines. Export earnings from gold increased by 6 per cent to $10.9 billion in 2007-08, as a 29 per cent increase in world prices more than offset lower export volumes.

Copper

Copper mine production remained flat at around 862 000 tonnes in 2007-08, with lower production at established mines being offset by higher production at new operations such as the Lady Annie mine in Queensland and the Jaguar mine in Western Australia. Refined production of copper was slightly higher in 2007-08, reflecting higher output at the Townsville refinery and CopperCo’s new SX-EW project both in Queensland. Copper export values in 2007-08 increased by 3 per cent to 6.7 billion, reflecting higher export prices.

Nickel

Australian nickel mine production was stable at around 190 000 tonnes in 2007-08. Lower production in Western Australia at mines such as Minara Resources’ Murrin Murrin and BHP Billiton’s Nickel West was offset by the commencement of Western Areas’ Forrestania project. Intermediate nickel production was 22 per cent lower in 2007-08, partly reflecting the closure of the Kalgoorlie nickel refinery in Western Australia. The refinery is being rebuilt and is expected to be in operation by November 2008. Despite the refinery closure, Australian refined nickel production remained stable. The value of nickel exports declined by 33 per cent to $4.2 billion in 2007-08, reflecting a 25 per cent decline in world prices.

Zinc

Zinc mine production increased by almost 200 000 tonnes (14 per cent) to 1.6 million tonnes in 2007-08. The largest contributor to this increase was Perilya’s Beltana zinc mine in South Australia, which operated for a period of twelve months to take advantage of high zinc prices.
Operations at the mine ceased in February 2008. Increased production also occurred at the Century and Cannington mines in Queensland. Refined zinc production was largely unchanged, reflecting no new additions to capacity during the year. Export earnings from zinc were 22 per cent lower at $3.4 billion in 2007–08, as lower zinc prices more than offset higher volumes shipped.