It's a great time to be in the minerals industry with net profits up 74 per cent and average mineral prices up 45 per cent from 2004-05, according to the Minerals Council of Australia 2006 Minerals Industry Survey.
It's a great time to be in the minerals industry with net profits up 74 per cent and average mineral prices up 45 per cent from 2004-05, according to the Minerals Council of Australia 2006 Minerals Industry Survey.
Governments are also benefiting, with tax revenue up 250 per cent to $4.3 billion and royalties paid to state and territory governments rising almost 50 per cent to $2.2 billion. The total taxes payable to all governments increased by 120 per cent to $7 billion.
The abundance of work available in the mining sector has led to total employment increasing by 19 per cent to 82,588 persons, while net cash used in investing activities was up 29 per cent to $10.1 billion relative to 2004-05.
Mine production was up 7 per cent in volume terms and smelting and refining production was up 3 per cent, while the value of mineral resources exports increased by 32 per cent in 2005-06 to $91.8 billion.
The report predicts domestic production will continue to increase in 2006-07 ranging from bulk commodities, up 9 per cent, to base metal production, up 10 per cent.
Base metal prices are predicted to increase by approximately 50 per cent, while bulk commodity prices are forecast to increase except for metallurgical coal.
The MCA release is below:
Driven by higher export prices and volumes, Australia's export earnings from mineral resources rose to $26.5 billion in the September quarter 2006, an increase of $829 million, or 3 per cent from earnings in the previous quarter.
The result is contained in the September quarter Australian Mineral Statistics report, released today by Phillip Glyde, Executive Director of ABARE.
'This stronger performance mainly reflects higher export prices and increases in export volumes for over half of the mineral and energy commodities,' Mr Glyde stated.
'Commodities that recorded the largest increases in export earnings in the September quarter 2006 were: crude oil (up $951 million); nickel (up $664 million); iron ore and pellets (up $404 million); and petroleum refinery products (up $126 million),' Mr Glyde said.
The index of export prices of Australian mineral resources (export unit returns) rose by 4 per cent in the September quarter 2006, compared with the previous quarter. When compared with the September quarter 2005, the index was around 20 per cent higher.
'This reflects higher world prices for most commodities compared with a year ago,' Mr Glyde said.
Mr Glyde also noted that export earnings for some major export commodities decreased during the September quarter 2006, including steaming coal, copper, coking coal, lead and zinc, although earnings still remain significantly higher than twelve months ago, apart from coal.
ABARE's most recent short term (to 2006-07) forecasts of production, exports and prices for the full range of Australia's key mineral resource commodities, will be published in the December issue of ABARE's quarterly journal, Australian Commodities, to be released electronically at 10am on 18 December 2006.
