PERTH (miningweekly.com) – Federal Resources Minister Keith Pitt has paid tribute to the role iron-ore is playing in boosting the Australian economy, congratulating the sector on its resilience and reliability during the Covid-19 pandemic.
“Australia’s iron-ore miners are some of the most efficient in the world, delivering record volumes of high quality Australian iron-ore to major trading partners across the globe.
“Our major miners have made a concerted effort to bring down production costs over the last 10 years, and those efforts are paying off,” Pitt said.
He noted that the resources sector and exports have helped to underpin Australia’s continued economic growth throughout the Covid-19 downturn, accounting for around 10% of Australia’s gross domestic product and directly employing around 262 000 Australian men and women, mostly in regional areas.
Iron-ore is Australia’s single largest commodity export and is forecast to earn Australia around A$70-billion over the six years to 2025/26. Iron-ore supports 45 600 direct Australian jobs and is a major employer of Indigenous Australians.
In Western Australia, iron-ore royalties alone topped A$5-billion in the six months to December 2020.
Pitt pointed out that last week’s Budget said higher iron-ore and resources prices have improved the outlook for company profits, leading to an increase in company tax forecasts of A$11.8-billion over the four years to 2023/24.
“I congratulate our iron-ore sector for its strength, reliability and resilience during the Covid-19 pandemic, and for its continued support of Australia’s economy,” Pitt said.
“Increased royalties and tax revenues are continuing to support our economy, and to help pay for essential services that Australians rely on such as schools and hospitals, roads, infrastructure and the defence force, for the benefit of all Australians.”
Pitt’s comments come as major BHP produced first ore at its $3.6-billion South Flank mine, in the Pilbara.