Australia mineral export earnings up, nickel leads with 21% rise

Australia's mineral export earnings rose by 2% to A$27.1 billion ($21.2 billion) in the December quarter of 2006 compared with the previous quarter, and nickel led the way as the commodity with the largest increase in export earnings, according to the Australian Bureau of Agricultural and Resource Economics.

ABARE's Executive Director Phillip Glyde said: "The commodity that had the largest increase in export earnings in the December quarter 2006 was nickel, up A$358 million (21%) to $2,034 million. This was a result of increases in both export volumes and export prices."

Other commodities that recorded significant increases in export earnings in the December quarter 2006 were: zinc, up A$236 million (25%) to A$1.2 billion; iron ore and pellets, up A$194 million (5%) to A$4.1 billion; and alumina, up A$107 million (7%) to A$1.7 billion.

The index of export prices of Australian mineral resources (export unit returns) fell by 3% in the December quarter 2006, compared with the previous quarter. "This reflects a reduction in energy minerals prices of 9% while metals and related minerals prices rose by 2%," Glyde explained.

He also noted that export earnings for some major export commodities decreased during the quarter. Earnings from coking coal, aluminium and refined gold decreased due mainly to lower export volumes, while export earnings from crude oil, LNG and petroleum refinery products decreased because of lower prices. Export earnings, however, remain considerably higher than a year ago, except for coking coal and petroleum products.

Australia mineral production mostly up for Dec quarter

In terms of production for the December 2006 quarter, almost two-thirds of Australia's major minerals and energy commodities recorded production increases compared with the September quarter 2006. Substantial increases in production of minerals and energy commodities occurred for refined lead (up 146%), tin mine (52%), other petroleum refinery products (41%) and uranium oxide (28%). Other significant increases occurred for mineral sands (leucoxene) and refined silver (both up 17%), automotive diesel (15%), nickel mine (14%), intermediate nickel (13%), titanium dioxide pigment (12%) and refinery LPG (11%).

Increases of 5-10% were recorded for zircon, aviation turbine fuel, zinc mine, both refined and blister copper and refined zinc.

Minerals and energy commodities for which production fell significantly were lead bullion (down 32%), silver mine (14%), naturally occurring LPG (12%) and rutile (11%). Decreases of 5?10% were recorded for refined tin, ilmenite and natural gas.