Iron backbone supports Australian trade health

New trade figures have highlighted the importance of mining in keeping Australia's economy afloat, with iron ore standing out in a record $100 billion result. Australian Bureau of Statistics (ABS) preliminary international trade in goods figures show the total value of exports and imports of goods both increased in June 2020, following declines in May and April 2020. The preliminary figures show that the value of exports increased by $2.35 billion, or 8 per cent, driven by strong exports of iron ore. Metalliferous ores in general were up 11 per cent on May - reaching a record high export value of $12.5 billion. Exports of iron ore (lumps and fines) accounted for $9.92 billion of that $12.5 billion total, with an 8 per cent jump in trade. This pushed the total exports of iron ore for 2019-20 to over $100 billion - representing more than a quarter of Australia’s total goods exported for this period. Adding to the increase in exports in June 2020 were non-monetary gold, up $916 million or 67 per cent to $2.29 billion, and petroleum, up $208 million or 47 per cent to $651 million. The ABS report is part of a suite of products that body is producing to help the community and governments understand the impact of, and economic responses to COVID-19. Coal and gas accounted for more than $7 billion in exports in June. Resources, Water and Northern Australia Minister Keith Pitt said the figures highlighted the importance of the resources sector to the Australian economy. “Iron ore exports in the 2019-20 financial year reached $101.7 billion, which is a great achievement at a time when our economy needs all the support it can get,” Mr Pitt said. “It smashes the previous annual export benchmark of $77.5 billion, also set by iron ore in the previous financial year. “The recent Resources Energy Quarterly revealed total industry exports will reach around $293 billion for the 2019-20 financial year, despite the challenges posed by the global coronavirus pandemic.” Mr Pitt acknowledged the resources industry was not immune to the economic downturn caused by COVID-19 but said it was still making an enormous contribution. “The slowdown in industrial activity around the world is having an impact on coal and gas demand, however they still managed to generate over $7 billion in exports in June alone,” Mr Pitt said. “Demand for both will return as we emerge from this pandemic and while some are using the downturn to make exaggerated claims about the future of some resources, the International Energy Agency confirms coal will remain a key player in energy generation for at least the next two decades. “The resources sector has gone to extraordinary lengths to remain operating through the pandemic and ensure the safety of its workers and the communities where they operate. “I thank all those resources workers who have adapted to the changing working environment and pull on their boots and put on their hard hats each day to keep the industry going to support our national economy at a time when it needs most needs them.” .

Iron backbone supports Australian trade health

Industry Queensland

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