Mining Technology

Daily Newsletter

08 August 2023

Daily Newsletter

Australia’s mining sector hits record high of A$455bn national export revenue

The A$455bn represents two-thirds of all export revenue for the nation and is a 10.5% increase on 2021–22, which was the previous record year.

Mining contributed a record A$455bn ($298.64bn) in export revenue for Australia in the 2022–23 financial year, according to recent data from the Australian Bureau of Statistics (ABS).

This figure represents two-thirds of all export revenue for the nation and is a 10.5% increase on 2021–22, which was the previous record year.

According to the data, Australia's export revenue from all coal totalled A$128bn. Iron ore exports came in close second, yielding A$125bn, while gold contributed A$27.4bn to total national export revenue, aluminium A$14.9bn and copper A$12.5bn.

The data also showed export growth in clean energy technology metals such as nickel (51%), zinc (30%) and copper (17%), while coal exports also continued to grow 11%, and gold performed, growing 5% for the financial year.

A report published in April by the Australian Government’s Department of Industry, Science and Resources predicted that the country’s revenue from critical minerals will match that of coal by 2028. Growth in renewable technology materials including lithium, nickel, cobalt and rare earth metals will see a significant increase this decade, while interest in coal has already reached its peak, the report said. It also predicted that export revenue from thermal coal will fall to A$19bn, down one third from current levels by 2027–28.

According to the Minerals Council of Australia, a partisan industry association representing Australia’s major mining companies, over the past decade the total contribution of minerals, metals and energy commodities to export revenue has totalled A$2.7trn.

According to separate statistics from the ABS, despite record contributions to export revenue for the year in May, the mining industry reported the largest fall in business turnover of the 13 selected industries.

Robert Ewing, ABS head of business indicators, said: “Mining turnover fell 6% in May, following a 12.1% fall in April, as demand and prices for commodities such as iron ore and coal come off recent highs.

“Increased monthly turnover was seen in 11 of the 13 selected industries in May, after most industries saw falls in turnover in the previous month. Electricity, gas, water and waste services recorded the largest monthly percentage rise, increasing 12.8% after falling 7.5% in April.”

The decrease in turnover was driven by a 0.5% fall in iron ore mining, largely caused by planned maintenance and shutdowns. A 2.6% fall in the mining of other materials due to wet weather disrupting gold and copper production in key areas also contributed to the decline.

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.