30 Jul Iron ore becomes the first Aussie commodity to crack $100 billion
The latest Resources Energy Quarterly has revealed that iron ore exports cracked $100 billion in 2019/20 in a major boost for the Australian mining and resources sector.
The Resources and Energy Quarterly (REQ) report is released by the Federal Government’s Department of Industry, Science, Energy and Resources and contains the Office of the Chief Economist’s forecasts for the value, volume and price of Australia’s major resources and energy commodity exports.
As predicted, iron ore exports smashed past the $100 billion barrier in a major boost for the Western Australian and Australian mining industries that are currently in the grip of COVID-19 restrictions and other challenges.
It was predicted that Australia would reach the milestone after a huge financial year that included filling the shortfall left by the Córrego do Feijão iron ore mine in Brazil, which was shut down following a major tailings dam collapse, as well as the impacts of COVID-19.
“Demand disruptions have run up against supply problems localised in Brazil, where COVID-19-related lockdowns have derailed efforts to recover from shutdowns in the wake of the Brumadinho tailings dam collapse,” the report read.
Deloitte Access Economics partner Noel Richards told ABC that the economic benefits from the last financial year and the expected boom over the next 12 months would be welcomed by the State and Federal economies.
“The State Government is having to put a lot of money on the line to support economic growth amidst COVID-19 and many of its other revenue streams, for example, property taxes, payroll taxes, will definitely be affected,” he said.
“So to have one revenue stream and royalties really supporting and growing the budget bottom line is very welcome, and that’s important for the economy because the State Government does have an important role to play in continuing to support economic growth in Western Australia.”
Gold also reaches record high as global demand for safety in ingots rises
Fears over the future of global economies amidst the ongoing threat of COVID-19 is driving more and more people to invest in the relative safety of gold. Investors are parking their money on gold as other markets turn volatile, leading to a record price of USD $1944.68 an ounce this week.
That beat the previous record of USD $1920 an ounce, which was recorded during the financial crisis in September 2011 when investors were also looking for the safe haven of gold. It is expected to surge past the USD $2000 mark as well, because of COVID-19 uncertainty and also geopolitical tensions between the US and China.