Resources drive trade surplus

Australia’s resources industry has posted record exports of $220 billion for the 2018 financial year, as the country’s trade surplus rose to $1.87 billion, according to new data from the Australian Bureau of Statistics.

Australia’s exports of goods and services surpassed $400 billion for the first time in 2017-18, due mainly to growth in resources exports, which accounted for 55 per cent of total exports.

Resources exports were up 11 per cent from the previous year due to rising sales of gold, coal, base metals and LNG.

Despite lower prices, iron ore remained Australia’s largest source of export revenue with $61.4 billion of the raw material shipped in 2017-18.

Gold exports including mined and refined gold set another record for export values with $20.1 billion of the precious metal shipped in FY18.

Exports of base metals and other minerals showed strong growth as a result of higher commodity prices and totalled $38 billion for the year.

Minerals Council of Australia chief executive Tania Constable said export revenues were a significant benefit to the economy.

“The minerals industry and mining equipment, technology and services (METS) sector continue to provide high-paying jobs for more than one million Australians, particularly those in regional areas,” she said.

“And Australia is also poised to seize future opportunities for minerals resources that will come from growth in new consumer, energy and transportation technologies around the world.

“We have extensive resources of the rare earth elements, base metals, lithium and precious metals that are the essential materials in smart phones, electric vehicles, modern energy systems and industrial machinery.

“This means maintaining a competitive minerals sector is essential for Australia’s continuing economic prosperity, jobs and regional communities.”

The trade surplus rose from $725 million in May to $1.87 billion in June, representing the 11th surplus in 13 months for Australia.