main features production Almost two-thirds of Australia’s major minerals and energy commodities recorded production decreases in the March quarter 2007 compared with the December quarter 2006. Substantial decreases in production of minerals and energy commodities occurred for diamonds (down 56 per cent), leucoxene concentrate (42 per cent), refined tin (30 per cent), uranium oxide and other petroleum refinery products (both 22 per cent), refined lead (20 per cent) and refined nickel class 1 (18 per cent). Other significant decreases occurred for crude oil and condensate and salt (both 13 per cent), aviation turbine fuel (12 per cent), and refinery LPG and tin mine production (both 11 per cent). Production decreases of 5–10 per cent were recorded for zinc mine, naturally occurring LPG, refined zinc, iron ore and concentrate, natural gas, intermediate nickel, gold mine, nickel mine, automotive gasoline and alumina. Minerals and energy commodities for which production rose significantly were refined nickel class 2 (up 67 per cent), silver mine (39 per cent), blister copper (17 per cent) and refined copper (13 per cent). Production increases of 5–10 per cent were recorded for automotive diesel oil, lead mine, copper mine, lead bullion and refined gold. exports Australia’s export earnings from mineral resources fell to $25.5 billion in the March quarter 2007, a decrease of just under $1.5 billion or 5.5 per cent compared with the previous quarter. This weaker performance mainly reflected decreased export volumes for more than two-thirds of the minerals and energy commodities. The reduction in export volumes resulted from disruption to both production and port operations following adverse weather conditions — both cyclonic conditions in Western Australia and heavy monsoonal conditions in the Northern Territory. Compared with the March quarter 2006, export earnings were 16 per cent higher. The commodity that had the largest decrease in export earnings in the March quarter 2007 was iron ore and pellets, down $496 million (12 per cent) to $3520 million. This was as a result of decreases in both export volumes and export unit values. Other commodities that recorded significant decreases in export earnings in the March quarter 2007 were: alumina, down $292 million (17 per cent) to $1418 million; zinc, down $225 million (18 per cent) to $988 million; copper, down $176 million (10 per cent) to $1511 million; crude oil and other refinery feedstock, down $147 million (7 per cent) to $1923 million; LNG, down $130 million (9 per cent) to $1270 million; diamonds, down $96 million (56 per cent) to $76 million; LPG, down $57 million (21 per cent) to $218 million; and uranium oxide, down $52 million (27 per cent) to $142 million. Major commodities that recorded increases in export earnings in the March quarter 2007 included: refined gold, up $161 million (7 per cent) to $2522 million; nickel, up $150 million (7 per cent) to $2210 million; aluminium, up $62 million (4 per cent) to $1446 million; lead, up $28 million (7 per cent) to $415 million; and steaming coal, up $9 million (0.5 per cent) to $1713 million. The index of export prices of Australian minerals resources (export unit returns) fell by less than 1 per cent in the March quarter 2007 compared with the previous quarter. Prices for energy minerals fell by 2 per cent, while metals and related minerals prices remained stable. Compared with the March quarter 2006, the Mach quarter 2007 index was 6 per cent higher, with higher world prices for mineral commodities (up 21 per cent year on year) more than offsetting a decline in energy commodity prices(down 12 per cent). ABARE’s most recent forecasts of minerals production, exports and prices for 2006-07 and 2007-08, and analysis of key factors affecting the outlook for minerals and energy markets and the Australian commodity industries, will be published in the June issue of ABARE’s quarterly journal, Australian Commodities, to be released electronically on 25 June 2007.