PERTH (miningweekly.com) – Australia’s resources and energy commodity export earnings are estimated to increase 11% in 2013/14 to A$196-billion, despite tighter commodity market conditions and lower margins for domestic producers, the Bureau of Resources and Energy Economics (Bree) reported on Wednesday.

Mineral commodity export earnings are forecast to increase 15% to A$122.9-billion, mainly owing to substantial growth in iron-ore export volumes, while export earnings from energy commodities are forecast to increase 6% to A$73.2-billion, underpinned by higher earnings from liquefied natural gas (LNG), crude oil and metallurgical coal.

“Australia is continuing to see the transition from the investment phase of the mining boom to the production phase. Throughout 2013/14 the production of key resources and energy commodities has increased, supported by continuing demand growth in key markets,” said Bree deputy executive director Wayne Calder.

He noted that while there were indications of improvements in nonmining sectors of the economy, the mining sector remained the principal source of Australia’s economic growth in the March quarter of 2014.

In seasonally adjusted terms, mining industry gross value added increased 8.6% and was by far the largest contributor to gross domestic product growth in the quarter. Iron-ore export volumes have been the main driver of this growth and were 27% higher year-on-year.

“Looking forward, price pressures will continue to impact on domestic producers in 2014/15 with falling commodity prices and a persistently strong dollar impacting on export values. This will draw a sharp focus towards managing costs and enhancing productivity in the sector,” Calder said.

Bree noted that lower iron-ore prices were unlikely to affect the production rates of most iron-ore mines in the Pilbara, which have some of the lowest production costs in the world. Iron-ore export volumes were expected to increase by 17% in 2014, to 680-million tonnes.

Australia’s exports of thermal coal are forecast to increase by 2% to 190-million tonnes in 2014 and a further 3% to 197-million tonnes in 2015, supported by higher output from new capacity and producers seeking to reduce unit costs.

Total export volumes for LNG during 2013/14 are estimated to be relatively flat at 23.8-million tonnes, compared with 23.9-million tonnes in 2012/13. However, export volumes are forecast to grow by 13% in 2014/15, to 27-million tonnes, with the start-up of the Queensland Curtis LNG, Gladstone LNG and Gorgon projects.

In 2014/15, Australia’s mineral and energy commodity export earnings are forecast to increase 2.6% to A$201-billion.