BENEFITS of the resource industry transition from construction into production phase are beginning to reflect in Australia’s economy with latest data showing a surge in commodity export earnings over the past 12 months.
According to the latest Resources and Energy Quarterly from the Bureau of Resources and Energy Economics (BREE), commodity export earnings have increased by 12% in the past year to reach a record $195 billion.
This marks an increase of 260% over the past decade for mineral and energy exports, however LNG is expected to lead growth in the near future with forecasts predicting an increase from $16.4bn to $57.1bn by 2019.
“Australia is moving decisively from the investment phase of the mining boom to the production phase,” said BREE deputy executive Wayne Calder.
“We will continue to see expansions in capacity from the Australian resources and energy sectors with increasing supply of iron ore and coal as well as the commencement of major new LNG projects across Australia.
“First LNG shipments from the East coast are expected to start by the end of 2014, rapidly ramping up over the period to 2019 to make Australia the world’s largest LNG producer.”
In the next 12 months, resource and energy exports may drop by 1.4% in line with softer commodity prices resulting from oversupply in key markets, but a rebound is also expected, with totals likely to reach $274 billion in the next five years.
The report also pay homage to the past contributions of the resource industry to the Australian community.
“The mining boom has had broad, positive effects on the Australian economy,” the report reads
“The growth in exports and investment over the past ten years have supported increased employment, regional development and increased revenues for both federal and state governments.
“The mining sector accounted for around 11% of Australia’s GDP in 2013-14, up from 7.8% in 2003-04.
“Over the past decade the mining industry has grown, in aggregate terms, more than any other industry in Australia with its industry gross value added increasing by $72bn in that time – more than 50% higher than the second largest contributor to growth.”
Mr Calder also adds that ‘the prospects for the resources and energy industry remain positive’.
“Continued economic growth in highly populated emerging economies will sustain increased demand for both resources and energy commodities into the future,” he said.
To read the report in full, click here.