Demand for materials used in low-emissions technology is helping to drive Australiaโs forecast resources and energy export earnings to new highs, on top of ongoing strong global demand and prices for energy.
Theย Resources and Energy Quarterlyย publication for the December quarter, published by the Department of Industry, Science and Resources, forecasts Australian resources and energy exports will earn a record $459 billion in 2022โ23, before easing to $391 billion in 2023โ24.
The publication forecasts combined export earnings for resources critical to low-emissions energy technologies, such as copper, nickel and lithium will reach almost $33ย billion in 2022โ23 compared with $22 billion in 2021โ22.
Also released today, the 2022ย Resources and Energy Major Projectsย report highlights trends in project development and the scope of the potential pipeline of future investment.
This yearโs major projects report shows significant growth in planned investment, including 134ย projects in Australiaโs new energy pipeline, up from 92 projects last year, with an estimated value of $312 billion.
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Minister for Resources and Northern Australia Madeleine King said the reports underlined how Australia resources and energy exports continue to support the Australian economy at a time of slowing global growth.
โThe results underline the importance of the resources and energy sector to Australiaโs economic wellbeing, accounting for around 10 per cent of GDP and directly employing more than 250,000 men and women, mostly in regional Australia,โ Minister King said.
Minister King said while energy prices have eased in recent months, they generally remain well above levels prior to Russiaโs war on Ukraine.
Domestically, the volatility in energy prices across the economy are putting unsustainable pressure on Australian households and industry.
โDemand for minerals crucial to new low-emissions technology, such as lithium, copper and nickel, remains strong and is supporting prices,โ Minister King said.
โThese materials, along with other critical minerals and rare earths, will be crucial to low-emissions technologies such as batteries, solar panels and electric vehicles, and will help Australia and the world to meet net-zero commitments by 2050.
โDemand for Australiaโs lithium remains strong. Theย Resources and Energy Quarterlyย forecasts lithium export earnings to increase more than ten-fold in two years, from $1.1ย billion in 2020โ21 to $16 billion in 2022โ23 and $17ย billion in 2023โ24, making lithium Australiaโs sixth largest resources and energy export commodity.โ
LNG earnings are expected to rise to $90ย billion in 2022โ23 from $71 billion last year, driven by a surge in international spot prices.
Theย Resources and Energy Quarterlyย forecasts total iron ore export earnings to be around $113 billion in 2022โ23. With prices easing since June, the benchmark price for iron ore in 2022 is forecast to average around $100 a tonne. In 2022โ23, Australiaโs export tonnages of iron ore are forecast to rise to 875 million tonnes, a 2.5% increase compared with the previous year.
International coal prices have declined from record levels but remain historically high. Australiaโs combined coal exports are forecast to earn $132 billion in 2022โ23.