Queensland’s resource output was down $5.2 billion for the first quarter of 2009, according to the Queensland Resources Council’s (QRC) State of the Sector Report released this week.
The QRCProduction Index found that approximately $4 billion if this decrease was due to lower sales of coal, particularly metallurgical coal.
The lower resources output represents a 14% decrease compared to the December 2008 quarter.
The QRCProduction Index is a weighted index that tracks increases and decreases in the production of Queensland resources from quarter to quarter.
The index names the global economic recession, lower levels of consumer spending on steel-intensive manufactured goods and reduced construction activity as the primary reasons behind the sharp decrease in coal output.
Significant decreases were also recorded in copper (down $219 million), lead (down $89 million), silver (down $47 million), and zinc (down $65 million).
Despite the lower output results, there have been signs in the second quarter that the markets have begun to stabalise, QRC president Michael Roche said.
“We did note renewed enthusiasm in some coal markets during June, and a slight rebound in prices for some base and precious metals,” he said.
“However, most indicators are still saying that global economic activity will remain weak in 2009 and possibly into 2010.”