Australia predicts record rise in mining & energy export sales for 2023

By Sakina Raj  | Date: 2022-07-04

Australia predicts record rise in mining & energy export sales for 2023

Australia's mining and energy export sales are reportedly expected to increase 3% to a record USD 288 billion (A$419 billion) by 2023.

This price surge is supported by rising gas and coal prices owing to the Russa-Ukraine conflict.

Sanctions imposed on Russia for its attempt to disarm Ukraine have burgeoned the prices of coal and LNG (liquefied natural gas). This underpins the record sales for the second and third-largest exports in Australia.

In a quarterly report on resources and energy, the Department of Industry remarked that the prices for energy entities are anticipated to stay stronger and longer than previously predicted as Western countries are seeking alternatives to Russia-sourced oil and gas.

The report also stated that global economic activity could be severely affected due to higher global interest rates for combating inflation.

The LNG export value is predicted to increase by 19% to USD 57.81 billion (A$84 billion) by June 2023 although volumes are forecasted to decrease by 3% with declining outputs from gas fields sourcing the Darwin LNG plants and the Northwest Shelf.

Furthermore, the thermal cost exports are forecast to increase by 15% to USD 30.28 billion (A$44 billion) on a small rise in volume and robust pricing as Australia-source coal is considered the primary option for the higher coal grades sourced by Russia.

Sales from steelmaking metallurgical coal are predicted to soar by 3% to USD 41.30 billion (A$60 billion).

The report, while pointing to a possible decrease in coal outcomes owing to heavy rainfall, has noted that any supply disruptions will cause price surges with energy inventories in the Northern Hemisphere well below the normal level.

Countering coal and LNG gains, the value of iron ore, Australia's top export earner, is anticipated to decline by 12% to USD 79.88 billion (A$116 billion) in June 2023, with the average price declining to USD 99 per tonne from USD 119.

Source credit:

About Author

Sakina Raj

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles relating to diverse domains for BonafideNews and vari...

Read More