MINERAL and petroleum commodities dominate Western Australian exports, with iron ore alone accounting for almost one-third of the state's total exports.
MINERAL and petroleum commodities dominate Western Australian exports, with iron ore alone accounting for almost one-third of the state's total exports.
Figures from the Department of Industry and Resources show mineral and petroleum exports from WA were valued at $59 billion in 2007-08, up 14 per cent on the previous year.
By far the largest increase was in iron ore and concentrate exports, which rose from $15.3 billion in 2006-07 to $19.3 billion in 2007-08.
That was driven by production increases by the state's two largest producers, BHP Billiton and Rio Tinto, combined with the strong growth in the negotiated iron ore price.
Newly commissioned iron ore projects during the year also added to production levels.
Fortescue Metals Group began exporting from its 55 million tonne Pilbara project in May this year.
The company generated $201 million in export revenue through the export of 1.66mt of iron ore in the eight weeks to June 30 2008, and has since shipped a total of 5.9mt.
Rio Tinto commissioned two projects in the second half of 2007, which will contribute to higher exports in 2008 and 2009 - the 22mtpa Hope Downs mine and the expansion of the Yandicoogina mine expansion, which will produce an additional 16mtpa.
BHP Billiton's Rapid Growth 3 project, an additional 20mtpa, was completed in late 2007 and will also add to production and export volumes as it increases output.
Other iron ore producers to make the WA Business News Book of Lists top 20 include Portman Ltd, which achieved revenues of $531.8 million, and Mt Gibson Iron Ore, with revenues of $435.2 million.
The increase in negotiated iron ore contract prices for the fifth consecutive year also contributed to the increase in export revenues.
In 2007-08, the contract iron ore prices rose by 9.5 per cent to US81.7cents per dry long ton unit for fines and US104.3c/dltu for lump, according to the Australian Bureau of Agricultural and Resource Economics, with forecasts it will rise to 147.01c/dltu in 2008-09.
Gold exports were another significant contributor, ranked as the state's second largest export commodity.
Gold exports in 2007-08 totalled $12 billion, up from $10.4 billion the previous year, and accounted for 17.6 per cent of all exports, according to DoIR.
Gold refiner AGR Matthey is ranked WA's second largest exporter, achieving $11 billion in revenues for 2007-08, up from $9.4 billion the previous year.
Government-owned Gold Corporation, the trading company for the Perth Mint, is ranked the state's 11th biggest exporter, with $880 million in exports, up from $619 million the previous year.
As with iron ore, the gold price also staged a strong price increase, rising from an average of $US639/ounce in 2006-07 to $US823 in 2007-08, according to Abare.
Australia's gold production is estimated to have fallen by around 9 per cent to 227t in 2007-08, the lowest annual production since 1989.
Petroleum is WA's third largest export commodity, contributing $9.1 billion in export revenue in 2007-08, up from $6.9 billion the previous year.
Nickel exports took a hit on lower production and a drop in prices, with export revenues down from $1.4 billion in 2006-07 to $788 million in 2007-08.
The state's biggest nickel producer and WA's sixth biggest exporter, BHP Billiton Nickel West, experienced a 5 per cent drop in production to 98,100t.
Minara Resources, ranked 13th in the Book of Lists, produced 27,500t of nickel at its Murrin Murrin operation in 2007, down 12 per cent on the previous year.
The average nickel price came off the record highs achieved in the previous financial year, settling at an average of $US28,512/t.
Offsetting the drop in production from established mines was the commencement of production new projects.
Western Areas started production at Forrestania project in last 2007, producing 3,867t of nickel for the year.
The commissioning of BHP Billiton's Ravensthorpe and Cliffs nickel projects this financial year is also expected to increase overall nickel production and exports.
Another major contributor to WA exports is LNG and alumina, which were categorised by DoIR as 'combined confidential trade', along with alumina, nickel mattes, powders and flakes and wheat.
With a combined value of $9.5 billion, LNG exports make up half of that amount, with alumina exports worth about $4.9 billion.
