https://www.miningweekly.com
Coal|Energy|Export|Financial|Gas|Gold|Industrial|Iron Ore|Manufacturing|Mining|Steel|Equipment|Manufacturing
Coal|Energy|Export|Financial|Gas|Gold|Industrial|Iron Ore|Manufacturing|Mining|Steel|Equipment|Manufacturing
coal|energy|export|financial|gas|gold|industrial|iron-ore|manufacturing|mining|steel|equipment|manufacturing-industry-term

Australia trims mining, energy export revenue for 2019/20 on trade war

30th September 2019

By: Reuters

  

Font size: - +

MELBOURNE – Australia has scaled back its expectations for record export revenue from mining and energy in the 2019/20 financial year as trade tariffs chill global economic growth, the government said on Monday.

Australia forecast mining sector revenue at $282-billion, down $3-billion from its June forecast, but still ahead of a record $279-billion in 2018/19.

"The outlook for the world economy remains uncertain. Global cutbacks in manufacturing production are already flowing through into commodity markets and the outlook for world industrial production has deteriorated," Australia's Department of Industry said in its latest quarterly report.

"The signs are that a further modest slowdown is likely. The US-China trade tensions have played a significant part in this world slowdown."

Resource and energy exports accounted for almost 60% of  Australia's total export earnings last financial year.

The country has reaped record revenues in recent years, with last year underpinned by higher iron-ore and liquefied natural gas exports, stronger iron ore and gold prices, and a lower Australian dollar.

Iron-ore is expected to be the top export earner in 2019/20 at A$81.5-billion, followed by coal at A$57.2-billion and liquefied natural gas at $52.1-billion.

Revenue from exports of gold, popular in times of economic uncertainty, are expected to surge by a third to A$25-billion.

Higher commodity prices have encouraged local mining companies to increase their annual spend on investment for the first time in six years, looking to replace ageing plant and equipment and expand their fleets, the report said.

Miners are expected to raise capital expenditure by about 14% in 2019/20, to just over $38-billion.

However, the report said Australia is particularly vulnerable to a slowdown in global economic growth, with China unlikely to stimulate its property sector - a major steel consumer - for fear of oversupply.

Export earnings are expected to fall to $258-billion in 2020/21 due to a rising exchange rate, slowing industrial production, and the steady return of Brazilian iron-ore production after supply disruptions.

Edited by Reuters

Comments

Projects

Image of lithium ore
Bougouni lithium project, Mali – update
Updated 2 hours 42 minutes ago By: Sheila Barradas

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.107 0.141s - 103pq - 2rq
Subscribe Now