It is no doubt an exciting time for Western Australian exporters, with the state exporting $47.35 billion worth of commodities and goods in the year ending June 30, reflecting growth of 21.9 per cent from the previous corresponding period.
During the past quarter, exports jumped 16.4 per cent from the June quarter in 2005 to $12.85 billion.
According to data provided by WA’s Treasury & Finance Department, the big jump has been attributed to strong demand for minerals and energy, which has pushed the unit value of exports higher and prompted producers to increase capacity.
That trend is expected to continue, with export values forecast to rise again.
The impact of increased prices and production is evident in certain individual commodities, especially iron ore, which is a key driver of the state’s exports.
Iron ore exports were up 10.4 per cent, or more than $300 million, in the June quarter alone. Production increases represented about a third of that growth.
It is a significant development which can be observed in the accounts of Australia’s two biggest mining houses – BHP Billiton Ltd and Rio Tinto Ltd.
According to statements from BHP, it generated $4.17 billion in revenue from iron in the year ending June 30, up more than 41 per cent from the previous year. Earnings before interest, tax, depreciation and amortisation from WA iron ore were up more than 68 per cent to $2.35 billion.
At Rio Tinto’s 100 per cent owned Hamersley operations, revenue was up 33 per cent to $1.89 billion for the six months ending June 30. EBITDA gained 42 per cent to $1.09 billion for half year, compared with the previous corresponding period.
It was a similar picture for the first half of calendar 2006 at Rio’s 53 per cent owned Robe River, with revenue up 49 per cent to $608 million and EBITDA jumping 30 per cent to $393 million.
It is a story told across much of WA’s minerals sector, though energy exports dropped off in the last quarter by more than $300 million.
Diamonds also slipped during the period. Rio’s Argyle diamond operation in the Kimberley generated about 18 per cent less revenue for the half year, and 16 per cent less EBITDA.
Balancing the ledger somewhat was plant and equipment imports for the quarter, which grew 20.1 per cent compared with the June 2005 quarter, an increase of about $800 million.
WA’s imports jumped significantly for the year, up 35 per cent to $19.11 billion – though this figure is markedly affected by gold imports due to Perth’s central role in the region’s refining process.
