Federal Minister for Resources, Water and Northern Australia Keith Pitt has credited Australia’s iron ore industry for its economic support of Australia.
Pitt welcomed the recent surge in iron ore prices after visiting BHP’s Jimblebar iron ore mine in the Pilbara region of Western Australia.
According to Pitt, Australian iron ore miners have brought down production costs over the last decade, which has helped meet demand.
“Australia’s iron ore miners are some of the most efficient in the world, delivering record volumes of high-quality Australian iron ore to major trading partners across the globe,” he said.
“Our major miners have made a concerted effort to bring down production costs over the last 10 years, and those efforts are paying off.”
The Australian government has anticipated iron ore exports will soar to a record high of $136 billion in the 2021 financial year.
Australia exported $103 billion worth of iron ore in the 2020 financial year.
Pitt said the Budget also made clear that iron ore and resources prices have increased company tax forecasts, which will continue to bolster the economy.
Resources sector exports have accounted for around 10 per cent of Australia’s GDP (gross domestic product).
The resources sector employs around 262,000 workers.
“I congratulate our iron ore sector for its strength, reliability and resilience during the COVID-19 pandemic, and for its continued support of Australia’s economy,” Pitt said.
“Increased royalties and tax revenues are continuing to support our economy, and to help pay for essential services that Australians rely on such as schools and hospitals, roads, infrastructure and the defence force, for the benefit of all Australians.”
Seaborne iron ore reached a record $US230.56 ($294.52) per tonne on 10 May, surpassing its previous record of $US201.88 per tonne on 6 May.