The Australian Resources Export Earnings for FY23 Have Been Revised to $308 Billion

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Australia’s Department of Industry, Science, Energy, and Resources announced on Monday that the country’s resources and energy export earnings had been revised to a record A$459 billion ($308 billion).

This revised forecast comes as the war in Ukraine is causing an uptick in prices for energy commodities. As a result, Australia will likely see growth in its revenue from thermal coal and liquified natural gas (LNG) exports through the year ending June 2023.

Department of Industry, Science and Resources said in a quarterly report, “Many Western nations are having to pay substantially more for energy, on the high chance that sanctions on Russia will see some Russian production — particularly gas and coal — become stranded from world markets.”

The Department of Industry, Science, Energy, and Resources had predicted an annual value of resources exports at A$450 billion in its most recent September report.

Iron ore is still Australia’s most valuable commodity export, with its total value estimated at A$113 billion for the ongoing financial year. Iron ore prices have experienced significant volatility due to global economic uncertainty associated with the COVID-19 pandemic and geopolitical tensions such as the US-China trade war.

Thermal coal exports are expected to be the biggest winner from this recent surge, with annual revenue growth of 65%, bringing its total value up to A$76 billion from A$46 billion.

The value of liquified natural gas exports is expected to reach an astonishing A$90 billion this financial year, a whopping increase of 27% from the A$71 billion earned last year. This growth comes amidst rising demand for energy commodities due to the ongoing conflict in Ukraine and other geopolitical tensions impacting global markets.

Many industry experts are optimistic about forecasts and believe that with solid production rates coupled with rising prices of energy commodities due to geopolitical tensions in Ukraine and other parts of Europe, Australia’s export earnings will continue growing throughout FY 23 until June 2023, when we can expect them to peak at an all-time high level this financial year.

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