Boom to continue earning 'serious money'
While there had been a slowdown in construction projects, the production of coal, iron ore, gas, liquefied natural gas (LNG) and base metals was ramping up.
The Bureau of Resources and Energy Economics (BREE) forecasts export earnings for mineral and energy commodities to increase by more than 60 per cent over the next five years to around $290 billion a year. "That is serious money," Mr Macfarlane told the 2013 Annual National Conference on Resources and Energy in Canberra. The value of those exports in 2012 was $177 billion. Much of the new growth will come from the LNG sector, with exports expected to increase by 360 per cent to around $65 billion.
"Australia will shortly become the second largest - or optimistically, the largest exporter - of LNG and that is nothing short of amazing," Mr Macfarlane said.
The federal government wants Australia to be an "energy super power" and will be working on a white paper towards this end over the next 12 months.
The minister plans to visit Japan, China, South Korea and Thailand in his first official overseas trip before parliament resumes to "tell the rest of the world we are open for business". Mr Macfarlane nominated coal seam gas (CSG) mining in NSW as one of his major challenges as industry minister, alongside negotiations with struggling carmaker Holden to support manufacturing.
The CSG market is a contentious issue in NSW, where farming communities are opposing activity near agricultural lands due to concerns about contamination.
Mr Macfarlane said he was confident that the issue could be resolved in a way that would make farmers part of the solution.
"As we have seen in Queensland, farmers get an economic gain out of it, the community gets an economic gain," he said.
Frequently Asked Questions about this Article…
The resources boom is not over — Industry Minister Ian Macfarlane says the sector is entering a new export growth phase. Government and industry forecasts in the article point to rising production in coal, iron ore, gas, LNG and base metals that should drive further growth.
The Bureau of Resources and Energy Economics (BREE) forecasts export earnings for mineral and energy commodities to rise by more than 60% over the next five years, to around $290 billion a year (up from about $177 billion in 2012).
LNG is expected to be a major driver of export growth — the article says LNG exports could increase by about 360% to roughly $65 billion. The minister highlighted that Australia could soon be the second-largest, or even the largest, LNG exporter.
The federal government aims to boost Australia’s global energy role and will work on a white paper over the next 12 months to outline policy and strategy toward being an "energy super power," according to the Industry Minister quoted in the article.
While construction activity has slowed, the article notes production is ramping up — specifically coal, iron ore, gas, LNG and base metals — which is expected to lift export earnings in the coming years.
CSG is a contentious issue in NSW because local farming communities are opposing activity near agricultural land over contamination concerns. The minister said he’s confident a resolution can be found that involves farmers and delivers economic gains — investors should watch regulatory and community outcomes that could affect projects and royalties.
The article mentions the minister is balancing resource priorities with other industry concerns, including negotiations with struggling carmaker Holden to support manufacturing. That highlights how government policy and industry negotiations can influence broader economic and investment conditions.
Industry Minister Ian Macfarlane plans to visit Japan, China, South Korea and Thailand before parliament resumes to promote Australian resources and tell international partners "we are open for business," supporting export growth and trade ties.
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