1301.0 - Year Book Australia, 2005

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 21/01/2005

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Contents >> Mining >> Production and trade of major minerals, oil, gas and petroleum

Mineral, oil and gas production

Table 16.20 shows the quantity produced for selected minerals, oil and gas. In the period 1998-99 to 2002-03 the most significant increases in production were for nickel in mine products (65.4%), manganese ore and concentrate (51.7%), uranium (44.4%), zinc ore and concentrate (31.2%) and iron ore (30.1%). 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. Production continued to increase in the next two years spurred by the rise in metal prices and strong growth in demand, particularly from China.

Production of diamonds, gold, ilmenite and rutile decreased between 1998-99 and 2002-03 with the largest falls recorded for diamonds and gold, 11.0% and 8.3% respectively. Diamond production changed significantly during the period with an increase of 36.5% in 2001-02 after falling by 17.5% in 1999-2000 and 24.3% in 2000-01.

16.20 VOLUME OF MINERAL, OIL AND GAS PRODUCTION, Selected minerals, oil and gas
		Units	1998-99	1999-2000	2000-01	2001-02	2002-03	Percentage change from 1998-99 to 2002-03

Metallic minerals
	Bauxite	Mt	46	51	55	54	54	17.3
	Copper ore and concentrate	’000 t	2,088	2,340	2,577	2,590	2,555	22.4
	Gold in mine products(a)	t	303	299	296	265	278	-8.3
	Iron ore and concentrate	Mt	153	160	176	185	199	30.1
	Lead ore and concentrate	’000 t	963	974	1,000	1,020	970	0.7
	Manganese ore and concentrate	’000 t	1,630	1,755	1,948	1,850	2,472	51.7
	Nickel in mine products(a)	’000 t	127	141	197	205	210	65.4
	Ilmenite	’000 t	2,156	2,134	2,092	1,843	2,069	-4.0
	Rutile	’000 t	214	185	209	207	208	-2.8
	Synthetic rutile	’000 t	569	566	650	612	673	18.3
	Titanium dioxide pigment	’000 t	164	168	181	186	189	15.2
	Uranium	t	6,387	8,217	9,549	7,964	9,222	44.4
	Zinc ore and concentrates	’000 t	2,139	2,343	2,697	2,715	2,806	31.2
	Zircon concentrate	’000 t	385	372	377	389	458	19.0
Coal
	Black coal (saleable)	Mt	225	239	258	273	274	21.8
	Brown coal	Mt	67	67	65	68	67	0.0
Other minerals
	Diamonds	'000 ct	35,948	29,672	22,475	30,676	32,006	-11.0
	Salt	'000 t	9,203	9,610	9,492	9,213	10,305	12.0
Oil and gas
	Crude oil and condensate	ML	27,897	37,447	38,705	36,100	33,321	19.4
	Natural gas	Mm³	30,681	31,180	31,524	32,136	33,162	8.1
	LPG (naturally occurring)	ML	4,368	4,832	4,056	4,612	4,682	7.2

(a) 'In mine products' relates to the metal content of the mineral. Source: ABARE, 'Australian Mineral Statistics' for figures on copper ore and concentrate, lead ore and concentrate, zinc ore and concentrate and natural gas; ABARE, 'Australian Commodity Statistics, 2003', for other figures.

Mineral and oil processing and treatment

As few minerals, oil and gas can be directly used in the form in which they are mined, most of these undergo processing and treatment before use.

Table 16.21 shows the production of the main manufactured products of mineral and oil origin.

16.21 PRODUCTION OF PRINCIPAL MANUFACTURED PRODUCTS OF MINERAL AND OIL ORIGIN
		Units	1998-99	1999-2000	2000-01	2001-02	2002-03

METALS

Non-ferrous
	Alumina	’000 t	14,207	15,307	16,098	16,417	16,413
	Refined aluminium	’000 t	1,686	1,742	1,788	1,809	1,855
	Refined copper	’000 t	306	477	517	561	537
	Lead bullion	’000 t	157	165	153	201	181
	Refined lead	’000 t	199	233	215	275	267
	Refined zinc	’000 t	323	405	534	572	570
	Refined tin	t	595	602	1,039	829	708
Ferrous
	Raw steel	’000 t	8,549	8,053	8,003	8,311	9,399
Precious
	Refined gold	t	419	383	361	346	386
	Refined silver	t	410	543	532	616	672

PETROLEUM

Petroleum products
	Diesel automotive oil	ML	12,968	12,737	13,212	13,064	13,335
	Industrial and marine fuel	ML	32	60	98	105	117
	Fuel oil	ML	1,634	1,839	1,951	1,684	1,441
	Petrol	ML	18,705	18,652	17,887	18,000	17,984

BUILDING MATERIALS

Clay bricks		m	1,609	1,711	1,436	1,516	1,639
Portland cement		’000 t	7,704	7,937	6,821	7,236	7,517

CHEMICALS

Superphosphates		’000 t	1,464	1,429	1,379	1,585	1,205

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

Exports of major minerals, oil and gas

Export earnings of minerals, oil and gas from the Australian resources sector fell to $54.9b in 2002-03, a decrease of $1.1b on the previous year. The resources sector covering minerals and energy production includes some commodities which are processed outside the mining industry (as defined by ANZSIC).

As shown in table 16.22, black coal (including coking and steaming) was the greatest export earner in 2002-03 ($11.9b), followed by crude oil and other refinery feedstock ($6.4b), iron ore and pellets ($5.3b), refined gold ($5.1b), aluminium ($3.7b) and alumina ($3.7b).

16.22 EXPORTS OF MAJOR MINERALS, OIL AND GAS, Value and quantity
		Units		1999-2000		2000-01		2001-02		2002-03

		Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value	Quantity	Value

Alumina		kt	$m	11,654	3,471	12,721	4,507	13,091	4,114	13,168	3,660
Aluminium (ingot metal)		kt	$m	1,364	3,302	1,471	4,229	1,490	3,965	1,551	3,696
Coal, black
	Coking	Mt	$m	97	5,184	106	6,597	106	8,038	108	7,448
	Steaming	Mt	$m	79	3,114	88	4,204	92	5,294	100	4,449
Copper		kt	$m	582	1,616	694	2,286	749	2,159	689	2,006
Diamonds		'000 ct	$m	51,095	601	25,513	634	25,811	512	32,274	649
Gold, refined		t	$m	330	4,803	302	4,887	280	4,950	282	5,133
Iron and steel
	Iron ore and pellets	Mt	$m	149	3,779	157	4,903	156	5,160	181	5,342
	Iron and steel	kt	$m	2,941	1,265	2,931	1,484	3,297	1,484	3,599	1,853
Lead		kt	$m	727	607	672	637	731	729	735	660
Magnesia		t	$m	174,854	45	161,236	53	151,760	56	143,372	52
Manganese ore and concentrate		kt	$m	1,301	185	1,522	261	1,660	299	1,999	316
Oil and gas
	Crude oil and other refinery feedstock	ML	$m	20,877	5,292	24,044	8,137	23,936	6,390	20,949	6,402
	LNG	Mt	$m	8	1,949	8	2,671	8	2,613	8	2,607
	LPG	ML	$m	2,857	648	2,785	830	3,211	721	3,194	855
Salt		kt	$m	8,389	221	8,636	253	8,912	267	10,168	233
Tin		t	$m	9,934	70	9,660	76	8,026	49	5,963	38
Titanium minerals
	Ilmenite concentrate	kt	$m	1,133	151	1,012	154	914	138	1,020	135
	Rutile concentrate	kt	$m	179	131	190	161	190	167	193	148
Uranium oxide		t	$m	8,025	367	9,722	497	7,367	361	9,593	427
Zinc		kt	$m	1,120	1,233	1,456	1,882	1,488	1,529	1,549	1,424
Zircon concentrate		kt	$m	374	180	375	228	388	274	445	281

Source: ABARE, 'Australian Commodity Statistics, 2003'.

Graph 16.23 shows the value of Australia's four largest mineral and oil exports during the period 1995-96 to 2002-03. The export values of black coal, crude oil and other refinery feedstock, and iron ore and pellets have been growing with crude oil and other refinery feedstock recording the largest increase (282%) followed by iron ore and pellets (87%) and black coal (53%). Black coal export value peaked in 2001-02 mainly as a result of an increase in unit values of coking and steaming coal exports. A similar peak was observed for the export value of crude oil and other refinery feedstock although it occurred in 2000-01. Since then, the export value of crude oil and other refinery feedstock has remained around $6.4b in the past two years.

Graph 16.23: EXPORTS OF SELECTED MINERALS AND OIL

The major markets for Australian mineral and oil exports are Japan, Republic of (South) Korea, United Kingdom, Singapore and Taiwan (graph 16.24). Asia is the most significant region for exports of Australian minerals and oil, accounting for 66% ($35b) of all Australian mineral and oil exports in 2002-03. Of the countries in this region, Japan is consistently the main destination for Australian minerals and oil for the period 1988-89 to 2002-03. Its share of total exports of minerals and oil was 27% ($14b) in 2002-03. The main minerals and oil exported to this country are coal, crude oil and other refinery feedstock, LPG, iron ore and pellets. Of this, coal is the most significant. In 2002-03, 52 Mt of steaming coal and 41 Mt of coking coal were exported to Japan (52% and 38% respectively of total Australian exports for these commodities). In the same year, 3,402 megalitres (ML) of crude oil and other refinery feedstock, 2,786 ML of LPG and 75,747 kilotonne (kt) of iron ore and pellets were also exported to this country. These exports respectively accounted for 16%, 87% and 42% of Australia's total exports of crude oil and other refinery feedstock, LPG and iron ore and pellets.

After Japan, the Republic of (South) Korea, Singapore and Taiwan are the main export destinations. The Republic of (South) Korea and Taiwan were other main markets for Australia's black coal. The steaming coal sent to these destinations amounted to 14 Mt (14% of total exported steaming coal) and 11 Mt (11%) respectively in 2002-03. Iron ore and pellets, and crude oil and other refinery feedstock were also exported to the Republic of (South) Korea. Singapore was a major market for Australian crude oil and other refinery stock, importing 6,564 ML from Australia in 2002-03, 30% of the total volume exported.

In the period 1988-89 to 2002-03 exports to United Kingdom had more than doubled. In 2002-03 the exports to this country were valued at $3b. Gold was the most significant mineral exported and amounted to 116 tonnes, 41% of Australia's total gold exports.

Graph 16.24: EXPORTS OF MINERALS AND OIL, By country of destination

Imports of major minerals and petroleum

Many imported mineral and petroleum commodities have had a certain amount of manufacturing applied to their raw forms. Table 16.25 provides details of the major commodities imported in the period 1998-99 to 2002-03. In terms of value, the largest imports for 2002-03 were for crude oil and other refinery feedstock ($9b) followed by gold ($3b). The major sources of Australian imports of crude oil and other refinery feedstock were Indonesia and Vietnam with a combined value of $4b (or 44% of the total import value for this commodity).

16.25 IMPORTS OF MAJOR MINERALS AND PETROLEUM, Value and quantity
		Units		1998-99		1999-2000		2000-01		2001-02		2002-03

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

Diamonds		'000 ct	$m	2,827	162	2,528	210	2,598	249	2,431	255	3,218	302
Gold		n.a.	$m	n.a.	2,351	n.a.	2,390	n.a.	1,686	n.a.	2,207	n.a.	2,957
Iron and steel
	Iron ore and pellets	kt	$m	4,429	85	4,460	107	4,658	122	3,880	104	4,667	114
	Iron and steel	kt	$m	1,127	940	1,128	1,034	896	923	1,354	1,099	1,306	1,226
Petroleum
	Crude oil and other refinery feedstock	ML	$m	29,729	3,794	26,936	6,313	26,343	8,753	27,308	7,458	27,958	8,610
	LPG	ML	$m	496	64	519	108	633	160	588	116	299	76
	Automotive gasoline	ML	$m	890	134	1,065	321	1,189	432	1,436	448	1,673	569
	Diesel fuel	ML	$m	1,435	225	1,400	377	1,129	438	1,280	414	1,627	561
	Other refinery products	ML	$m	581	312	648	325	902	463	n.a.	953	n.a.	1,971
Phosphate rock		kt	$m	884	64	756	54	823	62	933	72	711	50
Platinum and platinum group metals		kg	$m	8,329	148	3,199	55	2,158	30	1,652	42	2,319	64

Source: ABARE, 'Australian Commodity Statistics, 2003'.

Graph 16.26 shows imports of selected major minerals and petroleum during the period 1996-97 to 2002-03. The imports of crude oil and other refinery feedstock were significantly larger than the imports of other minerals particularly in 2000-01.

While the volumes of imports of crude oil and other refinery feedstock fluctuated over the period 1997-98 to 2002-03, the large changes in the value of imports between 1998-99 and 2002-03 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 16.26: IMPORTS OF SELECTED MINERALS AND PETROLEUM