Australia’s resources sector is still a major contributor to the Australian economy despite the rapid slowdown in the country’s mining investment boom.
According to the article on The Herald Sun, the Bureau of Resources and Energy Economics (BREE) said on Wednesday that Australia’s earnings from resources and energy exports will rise to $201 billion next fiscal year despite falling commodity prices and a persistently strong dollar impacting export values, which prompted many mining companies to shelve or scale back new investments.
The bureau further said while there were indications of improvements in non-mining sectors of the economy, the mining sector remained the main source of Australia’s economic growth in the first three months of the year, with low iron prices triggering a sharp increase in shipments to Asian buyers.
According to the article on Nasdaq, exports of raw materials like iron ore, used in steelmaking, are forecast to increase as mining operations planned when prices were high finally enter production.
The bureau estimates iron-ore shipments, much of which are destined for Chinese steel mills, to increase by 13% over the next year. Shipments of uranium are expected to rise 19%, while exports of liquefied natural gas are forecast to increase nearly 14%.