1301.0 - Year Book Australia, 2006

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006

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Contents >> Chapter 16 - Mining >> Production and trade of major minerals, oil, gas and petroleum

PRODUCTION AND TRADE OF MAJOR MINERALS, OIL, GAS AND PETROLEUM

MINERAL, OIL AND GAS PRODUCTION

Table 16.16 shows the quantity produced for selected minerals, oil and gas. Between 1999-2000 and 2003-04 the most significant increases in production were for manganese ore and concentrate (75%), iron ore (38%) and nickel in mine products (29%). The steady increase in iron ore and concentrate production over this period was driven by increased production in Western Australia, which accounts for 97% of Australian production.

Production of diamonds, gold, lead, ilmenite, rutile, crude oil and LPG decreased between 1999-2000 and 2003-04 with the largest falls recorded for crude oil and diamonds, 26% and 18% respectively. Diamond production changed significantly during the period with increases of 36% in 2001-02 and 4% in 2002-03; and decreases of 24% in both 2000-01 and 2003-04.

16.16 VOLUME OF MINERAL, OIL AND GAS PRODUCTION, Selected minerals, oil and gas
		Units	1999-2000	2000-01	2001-02	2002-03	2003-04	Percentage change from 1999-2000 to 2003-04

Metallic minerals
	Bauxite	Mt	51	55	54	54	56	9.8
	Copper ore and concentrate	’000 t	2,340	2,577	2,590	2,555	2,340	0.0
	Gold in mine products(a)	t	299	296	265	278	267	-10.7
	Iron ore and concentrate	Mt	160	176	185	198	221	38.1
	Lead ore and concentrate	’000 t	974	1,000	1,020	970	960	-1.4
	Manganese ore and concentrate	’000 t	1,755	1,948	1,850	2,472	3,062	74.5
	Nickel in mine products(a)	’000 t	144	195	193	183	185	28.5
	Ilmenite	’000 t	2,134	2,092	1,843	2,069	1,910	-10.5
	Rutile	’000 t	185	209	207	208	154	-16.8
	Synthetic rutile	’000 t	566	650	612	673	696	23.0
	Titanium dioxide pigment	’000 t	172	181	186	189	196	14.0
	Uranium	t	8,217	9,549	7,964	9,263	9,538	16.1
	Zinc ore and concentrates	’000 t	2,343	2,697	2,715	2,806	2,536	8.2
	Zircon	’000 t	372	377	389	458	448	20.4
Coal
	Black coal (saleable)	Mt	239	258	273	275	286	19.7
	Brown coal	Mt	67	65	68	67	67	0.0
Other minerals
	Diamonds	'000 ct	29,672	22,475	30,676	32,006	24,310	-18.1
	Salt	'000 t	9,610	9,492	9,233	10,438	10,705	11.4
Oil and gas
	Crude oil and condensate	ML	37,447	38,705	36,100	33,321	27,716	-26.0
	Natural gas	Mm³	31,180	31,524	32,136	33,162	33,279	6.7
	LPG (naturally occurring)	ML	4,832	4,056	4,647	4,681	4,639	-4.0

(a) 'In mine products' relates to the metal content of the mineral. Source: ABARE, 'Australian Mineral Statistics'; ABARE, 'Australian Commodity Statistics, 2004'.

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

16.17 PRODUCTION OF PRINCIPAL MANUFACTURED PRODUCTS OF MINERAL AND OIL ORIGIN
		Units	1999-2000	2000-01	2001-02	2002-03	2003-04

METALS

Non-ferrous
	Alumina	’000 t	15,037	16,098	16,417	16,413	16,796
	Refined aluminium	’000 t	1,742	1,788	1,809	1,855	1,877
	Refined copper	’000 t	477	517	561	537	458
	Lead bullion	’000 t	165	153	201	181	143
	Refined lead	’000 t	233	215	275	267	247
	Refined zinc	’000 t	405	534	572	570	502
	Refined tin	t	602	1,039	829	708	553
Ferrous
	Raw steel	’000 t	8,053	8,003	8,311	9,399	9,445
Precious
	Refined gold	t	383	361	346	386	397
	Refined silver	t	543	532	616	672	619

PETROLEUM

Petroleum products
	Diesel automotive oil	ML	12,737	13,212	13,064	13,335	12,544
	Industrial and marine diesel fuel	ML	60	98	105	117	84
	Fuel oil	ML	1,839	1,951	1,684	1,441	1,105
	Automotive gasoline	ML	18,652	17,887	18,000	17,984	17,375

BUILDING MATERIALS

Clay bricks		m	1,710	1,441	1,516	1,639	1,685
Portland cement		’000 t	7,937	6,821	7,236	7,731	8,460

CHEMICALS

Single superphosphates		’000 t	1,670	1,837	2,052	1,423	1,446

Source: Manufacturing Production, Australia (8301.0); ABARE, 'Australian Mineral Statistics', various issues and 'Australian Commodity Statistics 2004', Department of Industry, Tourism and Resources, 'Australian Petroleum Statistics'.

EXPORTS OF MAJOR MINERALS, OIL AND GAS

Export earnings of minerals, oil and gas from the Australian resources sector fell to $52 billion (b) in 2003-04, a decrease of $3b 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).

Table 16.18 provides details of the quantity and value of the main minerals, oil and gas commodities exported from Australia. In 2003-04, black coal (including coking and steaming) was the largest export earner ($11b), followed by refined gold ($6b), iron ore and pellets ($5b), crude oil and other refinery feedstock ($5b), alumina ($4b) and aluminium ($3b).

16.18 EXPORTS OF MAJOR MINERALS, OIL AND GAS, Value and quantity
			2000-01		2001-02		2002-03		2003-04

		Units	Quantity	$m	Quantity	$m	Quantity	$m	Quantity	$m

Alumina		kt	12,721	4,507	13,091	4,114	13,168	3,660	13,572	3,781
Aluminium (ingot metal)		kt	1,471	4,229	1,490	3,965	1,551	3,696	1,546	3,440
Coal, black
	Coking	Mt	106	6,597	106	8,038	108	7,448	112	6,510
	Steaming	Mt	88	4,204	92	5,294	100	4,448	107	4,372
Copper		kt	694	2,286	749	2,159	687	2,005	652	2,172
Diamonds		'000 ct	25,513	634	25,811	512	32,274	789	26,667	531
Gold, refined		t	302	4,887	280	4,950	282	5,133	315	5,510
Iron and steel
	Iron ore and pellets	Mt	157	4,903	156	5,160	181	5,342	195	5,272
	Iron and steel	kt	2,931	1,484	3,297	1,484	3,589	1,855	3,793	1,682
Lead		kt	672	637	731	729	735	657	688	726
Magnesia		t	161,236	53	151,760	56	143,372	52	154,620	51
Manganese ore and concentrate		kt	1,522	261	1,660	299	2,014	313	2,603	383
Oil and gas
	Crude oil and other refinery feedstock	ML	24,044	8,137	23,936	6,390	20,950	6,402	17,526	5,055
	LNG	Mt	8	2,671	8	2,613	8	2,607	8	2,174
	LPG	ML	2,785	830	3,211	721	3,194	855	2,916	647
Salt		kt	8,636	253	8,912	267	10,172	233	10,285	186
Tin		t	9,660	76	8,026	49	5,963	38	143	1
Titanium minerals
	Ilmenite concentrate	kt	1,012	154	914	138	1,020	135	783	82
	Rutile concentrate	kt	190	161	190	167	195	149	146	95
Uranium oxide		t	9,722	497	7,367	361	9,593	427	9,099	364
Zinc		kt	1,456	1,882	1,488	1,529	1,548	1,427	1,369	1,235
Zircon concentrate		kt	375	228	388	272	445	281	426	240

Source: ABARE, 'Australian Commodity Statistics, 2004'.

Graph 16.19 shows the value of Australia's four largest mineral and oil exports during the period 1996-97 to 2003-04. Exports 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 (139%) followed by iron ore and pellets (67%) and black coal (37%). Black coal exports 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 of crude oil and other refinery feedstock although it occurred in 2000-01. Over the three years following this peak the export value of crude oil and other refinery feedstock dropped $3b.

Graph 16.19: EXPORTS OF SELECTED MINERALS AND OIL

The major markets for Australian mineral and oil exports were Japan, Republic of (South) Korea, United Kingdom, Singapore and Taiwan for the period 1989-90 to 2003-04 (graph 16.20).

Japan was consistently the main destination among the Asian countries for Australian minerals and oil, receiving 21% ($10b) of total exports in 2003-04. The main minerals and oil exported to Japan were coal, crude oil and other refinery feedstock, LPG, iron ore and pellets. Of this, coal was the most significant. In 2003-04, 59 megatonnes (Mt) of steaming coal and 41 Mt of coking coal were exported to Japan (55% and 37% respectively of total Australian exports for these commodities). In the same year, 2,079 megalitres (ML) of crude oil and other refinery feedstock, 2,109 ML of LPG and 75,353 kt of iron ore and pellets were also exported to this country. These exports respectively accounted for 12%, 72% and 39% of Australia's total exports of crude oil and other refinery feedstock, LPG and iron ore and pellets.

The Republic of (South) Korea, Singapore and Taiwan were the other main export destinations. After Japan, the Republic of (South) Korea and Taiwan were the main markets for Australia's black coal. The steaming coal sent to these destinations amounted to 16 Mt (15% of total exported steaming coal) and 10 Mt (9%) respectively in 2003-04. 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 feedstock, importing 3,948 ML from Australia in 2003-04, 23% of the total volume exported.

In the period 1989-90 to 2003-04 exports to the United Kingdom had more than doubled. In 2003-04, the exports to this country were valued at $2b. Gold was the most significant mineral exported and amounted to 71 tonnes, 23% of Australia's total gold exports.

Graph 16.20: 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 16.21 provides details of the major commodities imported in the period 2000-01 to 2003-04. In terms of value, the largest imports for 2003-04 were for crude oil and other refinery feedstock ($6.6b), followed by other refinery products ($3.4b). The major sources of Australian imports of crude oil and other refinery feedstock were Indonesia, Malaysia and Vietnam with a combined value of $3.9b (59.5% of the total import value for this commodity).

16.21 IMPORTS OF MAJOR MINERALS AND PETROLEUM, Value and quantity
			2000-01		2001-02		2002-03		2003-04

		Units	Quantity	$m	Quantity	$m	Quantity	$m	Quantity	$m

Diamonds		'000 ct	2,598	249	2,431	255	3,218	302	2,229	309
Gold		n.a.	n.a.	1,686	n.a.	2,207	n.a.	2,957	n.a.	2,541
Iron and steel
	Iron ore and pellets	kt	4,658	122	3,880	104	4,667	114	5,417	140
	Iron and steel	kt	896	923	1,354	1,099	1,306	1,226	1,583	1,353
Petroleum
	Crude oil and other refinery feedstock	ML	26,343	8,753	27,308	7,458	27,958	8,610	23,498	6,594
	LPG	ML	633	160	588	116	299	76	785	166
	Automotive gasoline	ML	1,189	432	1,436	448	1,673	569	3,242	1,168
	Diesel fuel	ML	1,129	438	1,280	414	1,627	561	3,374	1,133
	Other refinery products	ML	902	463	2,327	953	5,194	1,971	9,762	3,427
Phosphate rock		kt	823	62	933	72	711	50	723	41
Platinum and platinum group metals		kg	2,158	30	1,652	42	2,319	64	2,984	86

Source: ABARE, 'Australian Commodity Statistics, 2004'.

Graph 16.22 shows imports of selected major minerals and petroleum during the period 1997-98 to 2003-04. 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 2003-04, 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%).

Graph 16.22: IMPORTS OF SELECTED MINERALS AND PETROLEUM