CANBERRA: Australia’s mining and energy export earnings are forecast to reach a record A$425 billion ($318 billion) in 2021-22, although prices of its key iron ore shipments are expected to ease, the government said on Monday. Resource export earnings are forecast to climb 33% in the 2021–22 financial year ending in June from a record A$320 billion the previous year driven by an unprecedented surge in coal and LNG prices, the Department of Industry said in its quarterly resources and energy outlook. These earnings are seen falling to A$370 billion in 2022–23, it said.

Global energy and commodity prices have surged this year on the prospect that Russia’s invasion of Ukraine will intensify shortages.

“Coal becomes only the second Australian commodity after iron ore to break through the $100 billion annual export mark,” said Australia’s Minister for Resources and Water Keith Pitt. “The combined export earnings for lithium, nickel and copper will likely exceed $23 billion in 2021-22, which would be an increase of 38 percent on the 2020-21 earnings,” he added.

Australian metallurgical and thermal coal prices hit record highs in January 2022, as bad weather affected production and transportation. New records were then set in the wake of the Ukraine war, the report noted. The combined coal export earnings are forecast to rise to about A$110 billion in 2021–22. Prices for iron ore, Australia’s top commodity export, remain well below their mid-2021 peak and are expected to ease as Brazilian supply recovers further and growth in global demand moderates.