Resources
and Energy Statistics
September quarter 2011
BREE 2011, Resources and Energy Statistics, September Quarter 2011, BREE, Canberra, 01/12/2011.
© Commonwealth of Australia 2011
This work is copyright, the copyright being owned by the Commonwealth of Australia. The Commonwealth of Australia has, however, decided that, consistent with the need for free and open re-use and adaptation, public sector information should be licensed by agencies under the Creative Commons BY standard as the default position. The material in this publication is available for use according to the Creative Commons BY licensing protocol whereby when a work is copied or redistributed, the Commonwealth of Australia (and any other nominated parties) must be credited and the source linked to by the user. It is recommended that users wishing to make copies from BREE publications contact the Chief Economist, Bureau of Resources and Energy Economics (BREE). This is especially important where a publication contains material in respect of which the copyright is held by a party other than the Commonwealth of Australia as the Creative Commons licence may not be acceptable to those copyright owners.
The Australian Government acting through BREE has exercised due care and skill in the preparation and compilation of the information and data set out in this publication. Notwithstanding, BREE, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data set out in this publication to the maximum extent permitted by law.
ISSN 1839-4892 (Print)
ISSN 1839-4906 (Online)
Vol. 1, no. 2
From 1 July 2011, responsibility for resources and energy data and research was transferred from ABARES to the Bureau of Resources and Energy Economics (BREE).
Postal address:
Bureau of Resources and Energy Economics
GPO Box 1564
Canberra ACT 2601 Australia
Phone: +61 2 6276 1000
Email:
Web:
Foreword
The Bureau of Resources and Energy Economics (BREE) is a professionally independent, economic and statistical research unit within the Department of Resources, Energy and Tourism. Key mandates of BREE are to provide high quality data, forecasts and research on resources and energy for Australia from an economic perspective.
Resources and Energy Statistics is a quarterly publication produced by BREE that covers the previous quarter, and year, and tables the prices, production, value and exports of key Australian energy and mineral commodities. The data in this authoritative and up-to-date publication comes from a wide variety of sources and provides a snapshot of the state of play of the resources and energy sectors in Australia.
If you are interested in other publications or would like further information about BREE and its activities, please visit
Quentin Grafton
Executive Director/Chief Economist
Bureau of Resources and Energy Economics
BREE contacts
Executive Director / Chief Economist – BREE / Quentin Grafton /(02) 6243 7483
General Manager / Jane Melanie /
(02) 6243 7502
Micro & Industry Performance Analysis – Theme Leader / Arif Syed /
(02) 6243 7504
Macro & Markets Analysis – Theme Leader / Jin Liu /
(02) 6243 7513
Resources Program – Program Leader / Alan Copeland /
(02) 6243 7501
Quantitative Economic Analysis – Theme Leader / Nhu Che /
(02) 6243 7539
Energy Program – Program Leader / Allison Ball /
(02) 6243 7500
Data & Statistics Program – Program Leader / Geoff Armitage /
(02) 6243 7510
Acknowledgements
BREE gratefully acknowledges the contribution of the BREE staff who have worked directly on the statistics in this publication, including Geoff Armitage of the Data and Statistics Program, and other BREE staff who include George Stanwix, Alan Copeland, Adam Bialowas, Rubhen Jeya, Tom Shael, Adrian Waring, Kate Penney, Nina Hitchins and Clare Stark.
The Data and Statistics Program of BREE is responsible for Resources and Energy Statistics.
Other BREE publications
- Resources and Energy Statistics 2011 (annual).
- Resources and Energy Quarterly.
- Australian Energy Projections.
- Mining Industry Major Projects, October 2011.
- Major Electricity Generation Projects, November 2011.
Contents
Foreword
BREE contacts
Acknowledgements
Other BREE publications
Contents
Data sources
Note on mine production data
Definitions
Definitions and explanations
Common abbreviations and conversions
Overview
Prices
Production
Exports
Commodity highlights
Energy
Oil and gas
Coal
Uranium
Metals and other minerals
Iron ore
Gold
Copper
Nickel
Zinc
Data sources
The statistics in this publication are obtained from several sources, as follows.
- The majority of mine production data (other than petroleum) is obtained from companies, published company reports and BREE estimates. Data are supplemented where necessary by information from state mines departments (or their equivalents).
- Petroleum production and sales are based on data obtained from the Resources Division of the Australian Government Department of Resources, Energy and Tourism.
- Smelter and refinery production data are provided by companies operating the major smelters and refineries.
- Trade data are obtained from official Australian Bureau of Statistics compiled statistics, supplemented by BREE estimates where necessary.
- Price information is from published sources.
The assistance of the organisations supplying data is gratefully acknowledged by BREE.
Note on mine production data
In most instances, data refer to actual mine output. However, in a small number of cases, despatches or sales data are used as proxies for production.
Quantities of minerals produced are reported in terms of the product in which they leave each mine site. This includes various stages of ore dressing, processing and elementary smelting where these are carried out in an associated plant at, or near, the mine. The output is recorded as ore where no treatment is undertaken at the mine, or as a concentrate where ore dressing operations are carried out.
Definitions
Definitions and explanations
Small discrepancies in totals are generally because of the rounding of components.
zero is used to denote nil or a negligible amount
p denotes a preliminary figure
s denotes a BREE estimate
Australian merchandise exports: are valued on a free on board (fob) basis at the Australian port of export. The costs of freight, insurance and other distributive services beyond the Australian customs border are not included.
Australian merchandise imports: are valued on a customs value for duty (vfd) basis that is identical to a free on board (fob) basis. The customs vfd is the price actually paid at the port of origin, including inland freight and insurance costs incurred in delivering the commodity to the port of origin. The freight and insurance costs of delivering the commodity(s) to the Australian port of destination are excluded.
Accounting of international merchandise trade: the valuation of Australian merchandise exports and imports used in the accounting of international trade in the Australian Balance of Payments and the international trade statistical system are in accordance with the definitions published in the harmonised international standards determined by the International Monetary Fund, Balance of Payments Manual (version 5), 1993 and the United Nations, System of National Accounts, 1993.
Common abbreviations and conversions
kg kilogram 2.20462 lb (pounds)
t tonne 1000 kilograms
kt kilotonne 1000 tonnes
Mt megatonne 1000000 tonnes
mtu metric ton unit 10 kilograms
ct metric carat
L litre 1.761 pints
kL kilolitre 1000 litres
ML megalitre 1000000 litres
Mm3 million cubic metres 1000000 cubic metres
bbl barrel 159 litres
oz troy ounce 0.031 kilograms
$m million dollars (Australian)
fob free on board
for free on rail
fot free on truck
cif cost, insurance and freight
Overview
- The index of export prices of energy and mineral resources was flat in the September quarter compared with the June quarter of 2011, as a 4 per cent increase in energy prices was offset by a 2 per cent decrease in metals and other minerals.
- In the September quarter, Australia’s export earnings from energy and mineral resources increased by 4 per cent to $48.8 billion compared with the previous quarter.
- Export volumes were higher for around 60 per cent of the major commodities, including for iron ore, uranium oxide (U3O8), iron and steel, aluminium, gold, thermal and metallurgical coal, and nickel.
- Australian production of energy and mineral resources was higher in the September quarter compared with the June quarter, with around 60 per cent of the commodities analysed recording increased production.
Prices
In the September quarter, the index of export prices of Australia’s energy and mineral resources (export unit values) rose by 13 per cent compared with the June quarter 2011. Export unit values for energy minerals increased by 15 per cent, mainly reflecting higher prices for thermal coal. Metals and other minerals prices increased by 11 per cent as higher gold, rutile and zircon export unit values were offset by declines in zinc, nickel, copper, and iron ore export unit values.
Compared with the September quarter 2010, the index of export prices for energy and mineral resources was 6 per cent higher. Export unit values for energy commodities increased by 15 per cent while export unit values for minerals and other metals was flat.
Production
Production was higher in the September quarter compared with the June quarter, with around 60 per cent of commodities recording production increases. The largest increase was in uranium oxide (U3O8) production, which increased by an estimated 75 per cent. Increased production was also observed for diamonds (45 per cent); refined silver (18 per cent); refined nickel class 2 (17 per cent); saleable black coal (11 per cent); liquid petroleum gas (LPG) (12 per cent); iron ore and concentrate (9 per cent); refined gold (7 per cent); bauxite (5 per cent); and iron and steel (3 per cent).
The increase in uranium oxide (U3O8) production in the September quarter 2011 was associated with significantly higher production at the Ranger mine compared to the previous quarter during which operations were limited to 15 days. Diamond production increased significantly in the September quarter associated with higher production from the Argyle diamond mine. Black coal production increases were supported by the recovery of production in Queensland following floods earlier in the year. Increased refined silver production was supported by the commissioning of new capacity at the Western Australian Government’s Perth Mint. The increase in refined gold production largely reflected a rise in the amount of refined gold produced from imported scrap and recycled gold during the quarter.
Declines in production occurred for blister copper (7 per cent); refined copper (5 per cent); mined lead (5 per cent); and, manganese ore and concentrate (2 per cent). Decreases in blister and refined copper reflected planned maintenance activities at BHP Billiton’s Olympic Dam operations. Mined lead production decreased as a result of lower ore grades at the Cannington mine in Queensland.
Exports
Export earnings from energy and mineral resources increased by 4 per cent to $48.8 billion in the September quarter 2011 compared with the June quarter. Commodities that recorded significant increases in export earnings over the September quarter include: iron ore, up $717 million (5 per cent) to $15 billion; thermal coal, up $613 million (17 per cent) to $4.2 billion; refined gold, up $773 million (25 per cent) to $3.9 billion; liquefied natural gas (LNG), up $388 million (15 per cent) to $3 billion; copper, up $158 million (7 per cent) to $2.3 billion; aluminium ingots, up $75 million (8 per cent) to $1.1 billion; and iron and steel, up $47 million (16 per cent) to $344 million.
Higher prices and export volumes for gold and thermal coal supported higher export earnings. Higher export volumes underpinned an increase in iron ore and metallurgical coal export earnings despite lower contract prices in the quarter. For LNG, a significant increase in price more than offset a decline in export volume.
Commodities that recorded significant declines in export earnings in the September quarter include: nickel, down $78 million (8 per cent) to $911 million; zinc, down $78 million (12 per cent) to $576 million; and, manganese ore and concentrate, down $31 million (9 per cent) to $322 million. With the exception of nickel, the decrease in export earnings from these commodities reflects both lower export volumes and prices.
Commodity highlights
Energy
Oil and gas
Australian crude oil and condensate production decreased by 0.5 per cent in the September quarter 2011, relative to the June quarter 2011, to total 5.7 gigalitres. Lower production resulted from planned maintenance at the Enfield and Van Gogh oil fields. This fall in production was partially offset by greater production in the CooperBasin, associated with a recovery from flood-related disruptions, and on the North West Shelf, following the completion of a planned outage.
Australian exports of crude oil and condensate in the September quarter 2011 decreased by 0.6 per cent, relative to the June quarter 2011, to total 4.6 gigalitres. The decrease in export volumes reflects marginally lower production from the Carnarvon and Bonaparte basins, located on the north-west coast of Australia, where the majority of production is sold to Asian refineries. The value of Australia’s crude oil and condensate exports in the September quarter decreased by 3 per cent, relative to the June quarter, to $3.1 billion reflecting a moderate fall in export volumes and a decline in oil prices.
In the September quarter 2011, gas production decreased by 3 per cent, relative to the June quarter 2011, to total 13.3 billion cubic metres. The decrease in production was largely the result of decreased output from the North West Shelf project due to planned maintenance.
In the September quarter, LNG export volumes decreased by 8 per cent, relative to the June quarter, to 4.6 million tonnes. The decrease in export volumes reflected decreased production at the North West Shelf project. Reflecting higher LNG prices, LNG export values in the September quarter increased by 15 per cent, relative to the June quarter, to total $3 billion.
Coal
Production of saleable black coal increased by 11 per cent to around 87 million tonnes in the September quarter 2011 compared with the June quarter. Exports of metallurgical coal increased by 6 per cent to 35 million tonnes, while thermal coal exports increased by 9 per cent to 40 million tonnes. Higher exports of metallurgical coal reflected the increase in production from mines in Queensland following the recovery from weather-related production losses in late 2010 and early 2011. Higher thermal coal exports were supported by the continued ramp-up of the Newcastle Coal Infrastructure Group coal terminal in New South Wales.
In the September quarter 2011, export values for metallurgical coal increased by 6 per cent, relative to the June quarter, to $8.6 billion. Thermal coal export values in the September quarter increased by 17 per cent, relative to the June quarter, to $4.3 billion.
Uranium
Australia’s uranium production (U3O8) in the September quarter 2011 increased by an estimated 75 per cent, relative to the June quarter 2011, to 2070 tonnes. The increase in production reflects an increase at Energy Resources of Australia’s Ranger mine, where production is increasing following a weather related shutdown for most of the first half of 2011. When compared to the corresponding quarter in 2010, Australia’s uranium production (U3O8) was 3 per cent higher in the September quarter 2011.
Reflecting increases in production, Australia’s uranium exports in the September quarter 2011 increased by 69 per cent, relative to the previous quarter, to 2070 tonnes. The value of Australia’s uranium exports in the September quarter, relative to the June quarter, increased by 75 per cent to $199 million.
Metals and other minerals
Iron ore
In the September quarter 2011, Australian production of iron ore increased by 9 per cent, relative to the June quarter, to total 131 million tonnes. This increase was mainly attributable to higher production across a number of mines including at Rio Tinto and BHP’s Pilbara operations and the production ramping up at Fortescue’s Chichester Hub expansion. Associated with higher production since the June quarter 2011, iron ore export volumes increased by 11 percent in the September quarter to 117 million tonnes. Higher volumes and high contract prices during the September quarter underpinned the increase in export values by 5 per cent relative to the June quarter, to $15 billion dollars.
Gold
In the September quarter 2011, Australian gold mine production fell by 2 per cent relative to the June quarter, to 65 tonnes. This decrease is largely attributable to producers taking advantage of high gold prices to target lower ore grades as it is still economically viable to do so. Gold export volumes increased by 9 percent in the September quarter to 78 tonnes, as production and exports of refined gold, sourced from overseas scrap, increased. Reflecting the significant increase in the price of gold over the September quarter, the value of Australian gold exports was $3.9 billion, an increase of 25 per cent compared to the June quarter.
Copper
Australia’s copper mine production in the September quarter 2011 increased by 2 percent, relative to the June quarter, to total 244000 tonnes. However, production of refined copper declined by 5 per cent to 118000 tonnes. This decline partly reflects a planned smelter and refinery outage at BHP’s Olympic Dam operation.
Reflecting lower refined production, Australia’s copper exports (in metal content terms) in the September quarter 2011 decreased by 1 per cent, relative to the previous quarter, to 220000 tonnes. The value of copper exports in the September quarter increased by 7 per cent, quarter on quarter, to $2.3 billion.
Nickel
Nickel mine production increased by 1 per cent in the September quarter 2011, relative to the June quarter, to 55000 tonnes. Refined nickel production increased by 4 per cent to 29000 tonnes as a result of higher production at a number of refineries, including at Minara Resources’ Murrin Murrin refinery. The value of nickel exports decreased by 8 per cent in the September quarter, as a 4 per cent increase in export volumes was more than offset by a 9 per cent decline in the nickel price.
Zinc
Australia’s mined zinc production (in metal content terms) in the September quarter 2011 totalled 401000 tonnes, an increase of 4 per cent from the June quarter. This was supported by increased production at MMG’s Golden Grove and Roseberry mines, Perilya’s Broken Hill mine, and Xstrata’s McArthurRiver operations. In the September quarter, refined zinc production remained relatively unchanged from the June quarter at around 126000 tonnes.