Australia’s resources and energy export earnings are forecast to surge to a record-high $425 billion for 2021-22, according to the latest report from the Department of Industry, Science, Energy, and Resources’.
Minister for Resources and Water Keith Pitt said the latest forecast is up a stunning 12 percent on the December 2021 quarterly projection of $379 billion.
“The March 2022 REQ has found that soaring demand and high prices for Australia’s gas, coal and oil are a key contributor to our record export earnings. In short, our resources sector is knocking it out of the park and underpinning our economic growth, our energy security, and our national security,” Pitt said in a statement.
“Critical global shortages in energy and resource commodities have led to record prices for many of our commodities. The REQ notes that with international coal prices at record levels – as the war in Ukraine and the ongoing La Niña weather conditions affect supply and demand – Australia’s combined coal export earnings are forecast to rise to about $110 billion in 2021–22,” he added.
According to the report, coal becomes only the second Australian commodity after iron ore to break through the $100 billion annual export mark. The combined export earnings for lithium, nickel and copper will likely exceed $23 billion in 2021-22, which would be an increase of 38 percent on the 2020-21 earnings.
“These forecasts again confirm just how important Australia’s resources and energy sector is to the nation’s economic and energy security,” PItt said, adding that these record earnings will keep the benefits flowing to all Australians, including through company taxes, the taxes paid by the more than 270,000 people in high paying resources jobs, the more than one million in indirect jobs generated by the sector and the royalties the states and the Northern Territory use to pay for services such as the hospitals, roads and schools across regional Australia.
The report also says the further outlook, for 2022-23, could see resources and energy export earnings easing off record levels to $370 billion as bulk commodity prices return to more familiar levels. However global uncertainty and strong global demand sees plenty of upside in this forecast.