Australia flags record mining earnings

SYDNEY: Australia on Tuesday forecast record mining earnings of Aus$215 billion (US$219.5 billion) for 2011-12 due to booming iron ore and steelmaking coal prices and project expansions.

The Bureau of Resource and Energy Economics said mining and energy export earnings would jump 21 percent in the 12 months to June 2012 as iron ore grew 26 percent to $68 billion and coking coal put on 29 percent to $37 billion.

"The 21 percent increase in resources and energy export earnings reflects strong increases for most commodities including coal, iron ore, oil and gas, base metals and gold," said bureau chief Quentin Grafton.

Electricity coal would be worth 29 percent more at $18 billion, with gold to increase 49 percent to $9 billion, crude oil and condensate up 13 percent at $13 billion and liquefied natural gas 11 percent firmer at $12 billion.

However prices were expected to drop due to "assumed weak economic growth, particularly in North America and Europe" for iron ore, steelmaking and power-generating coal, aluminium and nickel, Grafton said.

"While prices for a number of commodities are forecast to ease in 2012, it should be noted that in some cases they are coming off record high levels and still indicate a very positive outlook for the industry," he added.

Output volumes were likely to increase in the year due to boosted capacity, particularly for iron ore and coal.

Mining exports to industrialising Asian nations, chiefly China, helped Australia weather the global crisis without entering recession and have sent its export values rocketing to record highs.

Copyright AFP (Agence France-Presse), 2011