SALES AND SERVICE INCOME
Sales and service income for total mining was $96.1b in 2005-06, an increase of $24.6b (34%) over the previous year. All mining industries presented increased their sales and service income in 2005-06. Sales and service income for the 'core' mining industries of Coal mining, Oil and gas extraction, and Metal ore mining increased by $21.7b (35%) to $83.2b.
The largest contributor to sales and service income was Coal mining, at $28.7b. This was an increase of $8.4b (or 42%). According to ABARE, the average export unit value of coking coal rose by 64% to A$141.13 in 2005-06, while steaming coal rose by 9% to A$65.02. Prices were not as favourable for businesses reporting for the year ended 31 December 2005 (see Explanatory Notes paragraphs 22 and 23 for more details), when the price of coking coal was on average 16% lower, and steaming coal 2% lower, than in 2005-06.
Sales and service income for the Oil and gas extraction industry increased by $4.7b (27%) to $22.6b, despite declining crude oil production. In Australian dollar terms the world trade weighted average price of crude oil increased by 40% in 2005-06 to A$76.80 per barrel. Businesses reporting for the 2005 calendar year experienced a similar increase in crude oil prices (39%). However, the average price of A$65.24 during this period was 15% lower than in the financial year ended June 2006.
Continuing a pattern first established in 2004-05, Coal mining's sales and service income exceeded that of Oil and gas extraction.
Iron ore mining and Copper ore mining recorded the largest percentage increases (59%) in sales and service income. In absolute terms this equated to a $4.8b increase in Iron ore mining and a $1.4b increase in Copper ore mining. ABARE reported the average Australian dollar export price of iron ore increased by 51% in 2005-06, coupled with a 5% increase in export volumes. The average US dollar price of copper rose by 61%.
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