National account figures released yesterday have shown the significant contribution of mining exports to a 2.3 per cent trend growth for Australia in 2014.
The Minerals Council of Australia highlighted that mining growth in 2014 was 8.9 per cent, which amounted to a $134.6 billion increase which lifted Australia’s GDP to $1.578 trillion.
Iron ore mining alone contributed $60.2 billion to the increase, a sector increase of 16.3 per cent.
Coal jumped by $21.1 billion, a 6.7 per cent increase.
MCA said without the increase provided by the mining sector, Australia’s growth would have been 1.8 per cent.
Queensland Resources Council CEO Michael Roche described the national growth as sluggish, with the Queensland economy actually contracting by 2.5 per cent, and the economy shifting from new construction into production phase as major projects approach completion.
“The figures for demand in Queensland clearly reflect the reduction in private investment, which fell 3.5 percent in the December 2014 quarter,” Roche said.
“These figures are not unexpected as we move from investment to exports and the ABS March quarter accounts will reflect the first quarter of LNG exports out of Queensland.
“Queensland will be a major player in the global LNG market, set to produce 25 million tonnes a year of LNG by the end of 2016.”
Roche also said the Queensland coal industry would encourage further growth in the state as highly-populated emerging economies would sustain increased demand for energy commodities and ensure the future prospects of Australia, as outlined in the World Energy Outlook report from the International Energy Agency.
“The report forecasts Australia will regain its position as the world’s largest coal exporter on the back of strong growth in demand from Asia and fossil fuels will still make up about 75 per cent of global energy supply by 2040,” Roche said.