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production
Almost two-thirds of Australia’s major minerals and energy commodities recorded production increases in the December quarter 2006 compared with the September quarter 2006.
Substantial increases in production of minerals and energy commodities occurred for refined lead (up 146 per cent), tin mine (52 per cent), other petroleum refinery products (41 per cent) and uranium oxide (28 per cent).
Other significant increases occurred for mineral sands (leucoxene) and refined silver (both up 17 per cent), automotive diesel (15 per cent), nickel mine (14 per cent), intermediate nickel (13 per cent), titanium dioxide pigment (12 per cent) and refinery LPG (11 per cent).
Increases of 5–10 per cent were recorded for zircon, aviation turbine fuel, zinc mine, both refined and blister copper and refined zinc.
Minerals and energy commodities for which production fell significantly were lead bullion (down 32 per cent), silver mine (14 per cent), naturally occurring LPG (12 per cent) and rutile (11 per cent).
Decreases of 5–10 per cent were recorded for refined tin, ilmenite and natural gas.
exports
Australia’s export earnings from mineral resources rose by 2 per cent in the December quarter 2006 compared with the previous quarter — up by $602 million to $27.1 billion, another record level.
This stronger performance mainly reflected higher export prices and increased export volumes for over half of the minerals and energy commodities. Compared with the December quarter 2005, export earnings were 19 per cent higher.
The commodity that had the largest increase in export earnings in the December quarter 2006 was nickel, up $358 million (21 per cent) to $2034 million. This was as a result of increases in both export volumes and export unit values.
Other commodities that recorded significant increases in export earnings in the December quarter 2006 were: zinc, up $236 million (25 per cent) to $1182 million; iron ore and pellets, up $194 million (5 per cent) to $4102 million; alumina, up $107 million (7 per cent) to $1657 million; lead, up $87 million (30 per cent) to $381 million; copper, up $85 million (5 per cent) to $1772 million; and uranium, up $69 million (55 per cent) to $194 million.
Major commodities that recorded falls in export earnings in the December quarter 2006 included: coking coal, down $317 million (8 per cent) to $3746 million; crude oil, down $218 million (9 per cent) to $2103 million; aluminium, down $87 million (6 per cent) to $1369 million; LNG, down $75 million (6 per cent) to $1287 million; refined petroleum products, down $64 million (19 per cent) to $278 million and refined gold, down $61 million (3 per cent) to $2351 million.
The index of export prices of Australian minerals resources (export unit returns) fell by 3 per cent in the December quarter 2006 compared with the previous quarter. Prices for energy minerals fell by 9 per, cent while metals and related minerals prices rose by 2 per cent. Compared with the December quarter 2005, the December quarter 2006 index was 13 per cent higher. This mainly reflects higher world prices for most commodities compared with a year ago.
ABARE’s most recent forecasts of minerals production, exports and prices for 2006-07 and 2007-08, along with projections to 2011-12, and analysis of key factors affecting the outlook for minerals and energy markets and Australian commodity industries, were published in the March issue of ABARE’s quarterly journal, Australian Commodities, released on 6 March 2007. |
