INTERNATIONAL COAL NEWS

Coal export volumes up but earnings down

AUSTRALIA'S coal exports increased to record levels in the December quarter as a result of strong...

Lou Caruana

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However, export earnings for both metallurgical and thermal coal were down during the period as a 9% higher Australian dollar kicked in, according to the Australian Bureau of Agricultural and Resource Economics’ Australian mineral statistics, December quarter 2009 report.

While coal exports exceeded 74 million tonnes for the quarter, metallurgical coal export earnings were down 7% to $5.3 billion and thermal coal down 9% to $2.9 billion.

The index of export prices of Australian energy and mineral resources declined by 5% in the period. The energy export price index declined by 9% and prices for metals and other minerals declined by 1%.

Overall, Australia's energy and mineral resources export earnings increased by 1% to $31 billion in the quarter.

“The record volumes of bulk commodity exports in the December quarter were underpinned by demand from steel mills and power stations in Japan, the Republic of Korea and China,” ABARE deputy executive director Paul Morris said.

Production of more than half of Australia’s major mineral and energy commodities was higher during the quarter. Commodities for which production increased included iron ore, gold, nickel and aluminium. Iron ore export volumes for the quarter were more than 98Mt.

Higher world prices for metals and other minerals, such as aluminium, copper, gold and zinc, largely offset the effect of the higher Australian dollar.

Commodities which recorded significant increases in export earnings included: silver, up 31% to $67 million; bauxite, up 50% to $45 million; diamonds, up 51% to $89 million; manganese ores and concentrates, up 33% to $315 million; gold, up 13% to $3 billion; and iron and steel, up 12% to $225 million.

Commodities recording significant declines in export earnings included uranium oxide, down 37% to $182 million, and iron ore, down 5% to $6.8 billion.

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