1301.0 - Year Book Australia, 2004

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 27/02/2004

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Contents >> Mining >> Major commodities

Mineral production

Tables 16.25 and 16.26 show the quantity and value produced for selected minerals. Over the period 1997-98 to 2001-02 the most significant increases in production were for nickel in mine products (55%), copper ore and concentrates (54%), zinc ore and concentrates (38%) and uranium (38%). The sharp increase in nickel production in 2000-01 was driven by increased production in Western Australia which accounts for all Australian production. Increased production was the result of expanded operations and capacity of existing producers, and the start up of new projects.

Diamonds and ilmenite experienced significant production decreases, falling by 29% and 23% respectively between 1997-98 and 2001-02. The production of gold in mine products also fell from 317 t to 264 t (down 17%). In Western Australia, which accounts for about 70% of Australia's gold production, continued rationalisation and amalgamation of gold companies to reduce costs, and closure of projects due to depletion of reserves and/or high operating costs, contributed to the fall in gold production.

16.25 VOLUME OF MINERAL PRODUCTION, Selected minerals
		Units	1997-98	1998-99	1999-2000	2000-01	2001-02	Percentage change from 1997-98 to 2001-02

Metallic minerals
	Bauxite	Mt	44	46	51	55	54	22.7
	Copper ore and concentrates	’000 t	1,677	1,864	2,340	2,577	2,590	54.4
	Gold in mine products(a)	t	317	303	299	296	264	-16.7
	Iron ore and concentrates	Mt	161	153	160	176	185	14.9
	Lead ore and concentrates	’000 t	838	963	988	1,000	1,020	21.7
	Manganese ore and concentrates	’000 t	1,647	1,630	1,755	1,948	1,779	8.0
	Nickel in mine products(a)	’000 t	134	127	141	197	207	54.5
	Ilmenite	’000 t	2,392	2,156	2,134	2,092	1,843	-23.0
	Rutile	’000 t	247	214	185	209	207	-16.2
	Synthetic rutile	’000 t	662	569	566	650	612	-7.6
	Titanium dioxide pigment	’000 t	162	164	168	181	186	14.8
	Uranium	t	5,788	6,387	8,217	9,549	7,964	37.6
	Zinc ore and concentrates	’000 t	1,973	2,139	2,343	2,697	2,715	37.6
	Zircon concentrate	’000 t	409	385	372	377	389	-4.9
Coal
	Black coal (saleable)	Mt	222	225	239	258	273	23.0
	Brown coal	Mt	64	66	66	65	65	1.6
Oil and gas
	Crude oil and condensate	ML	33,961	27,897	37,447	38,705	36,100	6.3
	Natural gas and ethane	Gm³	31	32	33	34	36	16.1
	LPG (naturally occurring)	ML	4,901	4,368	4,832	4,558	4,647	-5.2
Other minerals
	Diamonds	'000 ct	43,046	35,948	29,672	22,475	30,676	-28.7
	Salt	'000 t	9,035	9,203	9,610	9,492	9,213	2.0

(a) 'in mine products' relates to the metal content of the mineral.

Source: ABARE, 'Australian Mineral Statistics' for figures on copper ore and concentrates, lead ore and concentrates and zinc ore and concentrates; ABARE, 'Australian Commodity Statistics, 2002', for other figures.

Changes in the value of production for selected minerals over the period 1997-98 to 2000-01 are given in table 16.26. The largest increases in the value of production are for zinc ore and concentrate (113%) and lead ore and concentrate (111%), followed by uranium (88%), and copper ore and concentrate (67%). The increases in the value of production for zinc ore and concentrate, and lead ore and concentrate were more than three times the increases in the quantity produced, reflecting the price increases of these minerals over the period.

16.26 VALUE OF MINERAL PRODUCTION, Selected minerals(a)
		1997-98	1998-99	1999-2000	2000-01	Change from 1997-98 to 2000-01
		$m	$m	$m	$m	%

Metallic minerals
	Copper ore and concentrates	1,376	1,397	1,503	2,303	67.4
	Gold bullion	4,972	4,532	3,851	1,189	-76.1
	Iron ore and concentrates	3,922	4,307	3,605	4,938	25.9
	Lead ore and concentrates	402	525	469	849	111.2
	Ilmenite(b)	189	212	288	169	-10.6
	Nickel ore and concentrates	n.a.	n.a.	n.a.	1,865	n.a.
	Rutile	186	182	184	117	-37.1
	Uranium	225	266	325	423	88.0
	Zinc ore and concentrates	695	739	934	1,483	113.4
	Zircon concentrate	218	179	284	202	-7.3
Coal
	Black coal	9,609	11,611	10,228	11,621	20.9
	Brown coal	385	328	n.a.	520	35.1
Petroleum(c)		9,523	8,118	11,295	12,127	27.3
Diamonds		n.a.	n.a.	n.a.	634	n.a.

(a) Gross value ex mine. (b) Excludes value of ilmenite use for beneficiated ilmenite. (c) Includes crude oil and condensate, LPG (naturally occurring), natural gas and ethane.

Source: ABARE, 'Australian Commodity Statistics, 2002'.

Mineral processing and treatment

As few minerals can be directly used in the form in which they are mined, most minerals undergo processing and treatment before use. Most processing and treatment occurs away from the mine site.

Table 16.27 shows the production of the main manufactured products of mineral origin.

16.27 PRODUCTION OF PRINCIPAL MANUFACTURED PRODUCTS OF MINERAL ORIGIN
		Units	1997-98	1998-99	1999-2000	2000-01	2001-02

METALS

Non-ferrous
	Alumina	’000 t	13,581	14,207	15,037	16,098	16,417
	Refined aluminium	’000 t	1,589	1,686	1,742	1,788	1,809
	Refined copper	’000 t	283	306	477	517	563
	Lead bullion	’000 t	171	157	165	153	201
	Refined lead	’000 t	185	199	235	215	276
	Refined zinc	’000 t	304	323	405	534	572
	Refined tin	t	650	595	602	1,039	829
Ferrous
	Raw steel	’000 t	9,143	8,549	8,053	8,003	8,311
Precious
	Refined gold	t	349	419	382	360	347
	Refined silver	t	227	410	543	532	616

FUELS

Petroleum products
	Diesel automotive oil	ML	13,183	12,968	12,737	13,212	13,064
	Industrial and marine fuel	ML	48	32	60	98	105
	Fuel oil	ML	1,673	1,635	1,839	1,951	1,684
	Petrol	ML	18,592	18,705	18,652	17,887	18,000

BUILDING MATERIALS

Clay bricks		m	1,532	1,594	1,735	1,448	1,514
Portland cement		’000 t	7,236	7,704	7,937	6,821	7,236

CHEMICALS

Superphosphates		’000 t	1,819	1,464	1,429	1,379	1,585

Source: Manufacturing Production, Australia (8301.0); ABARE, 'Australian Mineral Statistics', various issues.

Exports of major minerals

Export earnings of minerals from the Australian resources sector fell to $54.7b in 2001-02, a decrease of $0.9b on the previous year. The resources sector (which includes minerals and energy resources) includes some products which are refined outside the mining industry (as defined by ANZSIC).

As shown in table 16.28, black coal (including coking and steaming) was the greatest export earner, earning $13.6b in 2001-02, followed by crude oil and other refinery feedstock ($6.4b), iron ore and pellets ($5.2b), refined gold ($5.0b) and alumina ($4.1b).

16.28 EXPORTS OF MAJOR MINERALS, Value and quantity
		Units		1998-99		1999-2000		2000-01		2001-02

		Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value

Alumina		kt	$m	11,059	2,910	11,654	3,471	12,721	4,507	13,091	4,114
Aluminium (ingot metal)		kt	$m	1,365	2,840	1,364	3,302	1,471	4,229	1,490	3,965
Coal, black
	Coking	Mt	$m	85	5,472	97	5,184	106	6,597	106	8,308
	Steaming	Mt	$m	84	3,767	79	3,114	88	4,204	92	5,294
Copper		kt	$m	529	1,366	582	1,616	694	2,286	749	2,160
Diamonds		'000 ct	$m	51,244	598	51,095	601	25,313	634	25,242	555
Gold, refined		t	$m	421	6,317	330	4,803	302	4,887	280	4,950
Iron and steel
	Iron ore and pellets	Mt	$m	135	3,844	149	3,779	157	4,903	156	5,160
	Iron and steel	kt	$m	3,332	1,316	2,941	1,268	2,931	1,543	3,147	1,381
Lead		kt	$m	620	537	727	607	672	637	731	729
Magnesia		t	$m	122,777	46	174,854	45	161,236	53	151,760	56
Manganese ore and concentrate		kt	$m	1,125	165	1,301	185	1,522	261	1,589	290
Petroleum
	Crude oil and other refinery feedstock	ML	$m	14,291	1,881	20,877	5,292	24,044	8,137	23,936	6,390
	LNG	Mt	$m	8	1,425	8	1,949	8	2,671	8	2,613
	LPG	ML	$m	2,486	297	2,857	648	2,785	830	3,211	721
Salt		kt	$m	8,710	222	8,389	221	8,636	253	8,912	267
Tin		t	$m	10,002	73	9,934	70	9,660	76	8,026	49
Titanium minerals
	Ilmenite concentrate	kt	$m	1,216	142	1,133	151	1,012	154	914	138
	Rutile concentrate	kt	$m	188	148	179	131	190	161	190	167
Uranium oxide		t	$m	5,989	288	8,025	367	9,722	497	7,367	361
Zinc		kt	$m	1,126	1,133	1,120	1,233	1,456	1,882	1,488	1,529
Zircon concentrate		kt	$m	364	187	374	180	375	228	388	274

Source: ABARE, 'Australian Commodity Statistics, 2002'.

Graph 16.29 shows the value of Australia's five largest mineral exports during the period 1994-95 to 2001-02. The value of crude oil and other refinery feedstock exported increased four-fold between 1998-99 and 2000-01 due to a 68% increase in the volume exported combined with an increase in the world trade weighted average crude oil price from US$12.31 to US$26.82 per barrel.

The value of black coal exports rose significantly in both 2000-01 and 2001-02. The increases for coking coal were 26% in 2000-01 and 27% in 2001-02, while steaming coal rose 35% in 2000-01 and 26% in 2001-02. These increases were mainly due to increases in the unit values of exports particularly in 2001-02. In this year, the unit value of coking coal rose by 26% from $62 to $78 per Mt with the volume exported remaining at 106 Mt. The unit value of steaming coal also rose by 20% from $48 to $58 per Mt.

Graph - 16.29 Exports of selected minerals

The major markets for Australian mineral exports are Japan, Singapore, United States of America, Taiwan and the Republic of (South) Korea (graph 16.30). Asia is the most significant region for exports of Australian mineral resources, accounting for 68% ($32b) of all Australian mineral exports in 2000-01. Of the countries in this region, Japan is the main destination for Australian minerals, with $15b of export earnings entering the Australian economy in 2000-01. Its share of total exports of minerals was 27%. After Japan, the Republic of (South) Korea, Taiwan and Singapore are the main export destinations. The other significant market is the United States of America, which purchased $2.1b worth of Australian minerals (4% of the total) in 2000-01.

The main mineral exported to Japan is coal. In 2000-01, 50 Mt of steaming coal and 43 Mt of coking coal were sent to Japan (57% and 41% respectively of total Australian exports for these commodities). Japan also imported considerable quantities of crude oil and other refinery feedstock (4,068 megalitres (ML)), LPG (2,241 ML) and iron ore and pellets (67,834 kilotonne (kt)) from Australia. The volumes of LPG, and iron ore and pellets exported to this country were respectively 80% and 43% of Australia's total exports for these commodities.

The Republic of (South) Korea and Taiwan were also important markets for Australia's black coal. The steaming coal sent to these destinations amounted to 13 Mt (12% of total exported steaming coal) and 9 Mt (8%) respectively in 2000-01. The Republic of (South) Korea's imports of iron ore and pellets, and crude oil and other refinery feedstock accounted respectively for 14% (22,626 kt) and 18% (4,358 ML) of Australia's exports.

Singapore was one of the major destinations for Australian gold, buying 94 t of Australian gold in 2000-01. This amount was 31% of Australia's gold exports. Singapore was a major market for Australian crude oil and other refinery stock, importing 6,079 ML from Australia in 2000-01, 25% of the total volume exported.

In 2000-01, the United States of America imported a number of minerals from Australia including refined zinc metal (132 kt) and crude oil and other refinery feedstock (2,962 ML). Imports of zinc metal, and crude oil and other refinery feedstock respectively accounted for 29% and 12% of Australia's exports (in quantity terms) for these commodities.

Graph - 16.30 Exports of minerals, By country of destination

Imports of major minerals

Many imported mineral commodities have had a certain amount of manufacturing applied to their raw forms. Table 16.31 provides details of the major commodities imported over the past five years. In terms of value, the largest imports for 2001-02 were for crude oil and other refinery feedstock ($7b) followed by gold ($2b). The major sources of Australian imports of crude oil and other refinery feedstock were Indonesia and Vietnam with a combined value of $3b (or 45% of the total import value for this commodity).

16.31 IMPORTS OF MAJOR COMMODITIES, Value and quantity
		Units		1997-98		1998-99		1999-2000		2000-01		2001-02

		Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value

Diamonds		'000 ct	$m	2,777	170	2,827	162	2,528	210	2,598	249	2,431	255
Gold		n.a.	$m	n.a.	1,991	n.a.	2,351	n.a.	2,390	n.a.	1,686	n.a.	2,207
Iron and steel
	Iron ore and pellets	kt	$m	5,351	127	4,429	85	4,460	107	4,658	122	3,880	104
	Iron and steel	kt	$m	1,134	1,061	1,127	940	1,128	1,034	896	923	1,354	1,099
Petroleum
	Crude oil and other refinery feedstock	ML	$m	25,017	3,707	29,729	3,794	26,936	6,313	26,343	8,753	27,308	7,458
	LPG	ML	$m	511	68	496	64	519	108	633	160	588	116
	Automotive gasoline	ML	$m	483	93	890	134	1,065	321	1,189	432	1,436	448
	Diesel fuel	ML	$m	918	149	1,561	225	2,574	377	1,363	438	823	414
	Other refinery products	ML	$m	1,128	393	581	312	648	325	902	463	n.a.	953
Phosphate rock		kt	$m	452	30	884	64	756	54	823	62	933	72
Platinum and platinum group metals		kg	$m	3,536	61	8,329	148	3,199	55	2,158	30	1,652	42

Source: ABARE, 'Australian Commodity Statistics, 2002'.

Graph 16.32 shows imports of selected major minerals during the period 1995-96 to 2001-02. A significant amount was spent on crude oil and other refinery feedstock compared to other imported commodities particularly from 1999-2000 to 2001-02. In 2000-01, the import value of crude oil and other refinery feedstock was $8.8b while the value of the next largest import, gold, was $1.7b.

While the volumes of imports of crude oil and other refinery feedstock fluctuated over the period 1997-98 to 2001-02, the large changes in the value of imports between 1998-99 and 2001-02 were mainly due to significant unit value rises in 1999-2000 (up 84%) and 2000-01 (up 42%), and a decline in unit value in 2001-02 (down 18%).

Graph - 16.32 Imports of selected mineral minerals